In a move to increase the availability of credit — including arrangements that improve credit scores — small-business-boosting platform Hello Alice launched the Hello Alice Small Business Mastercard Tuesday (Aug. 16).
The card, issued in collaboration with Mastercard and First National Bank of Omaha, comes with common programs such as cash back. The card also includes “expert business advice” and “powerful business insights,” Tuesday’s (Aug. 16) announcement stated. In addition, card-holders who complete certain tasks on the Hello Alice platform will receive points on their cards.
The card also will include features to help business owners with limited or poor credit raise their scores. The card will include secured and un-secured options.
On its website, Hello Alice stated that the card will carry a 0% annual percentage rate on purchases and transfers made during the first six months after opening and that after that, the annual percentage will rise to “14.99 percent to 23.99 percent based on your creditworthiness.”
Elizabeth Gore and Carolyn Rodz, co-founders of Hello Alice, said in a prepared statement that the card was designed with goal of “breaking longstanding barriers to mentorship, access to credit, and overall financial health for those who have traditionally been denied access.” They stated that business owners who are not part of previous majority populations find gaining access to capital “particularly” difficult in times of economic boom or bust.
Mastercard President for North America Linda Kirkpatrick said in a prepared statement that the card is part of the company’s “mission to build a more inclusive digital economy by providing small businesses with the financial tools and capital they need to thrive.” She also said the card will help close wealth and opportunity gaps faced by black communities.
Hello Alice stated in the announcement that $70 million in grants to fund “credit enhancements” by 2025 would help 30,000 small business owners gain $1 billion in credit access.