Asian American entrepreneurs get a boost through CAAL grants
Recipients of grant from the Coalition of Asian American Leaders gather to celebrate.
Courtesy Coalition of Asian American Leaders
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A Minnesota organization supporting Asian American leaders across Minnesota just received $2.5 million from philanthropist Mackenzie Scott. It’s the Coalition for Asian American Leaders, or CAAL, and they’re using the funding to launch a new initiative called CAAL Ignite.
It’s a grant program that provides $10,000-15,000 to Asian American entrepreneurs and small business owners in the state. Applications for the grant open Wednesday.
ThaoMee Xiong is the executive director of CAAL. Laura Boller runs a hair and makeup business, “Laura B Beauty,” and is part of the CAAL community. Xiong and Boller joined MPR News host Nina Moini to talk about the grant.
Use the audio player above to listen to the full conversation.
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Audio transcript
NINA MOINI: A local organization supporting Asian American leaders across Minnesota just received $2 and 1/2 million from philanthropist Mackenzie Scott. It's the Coalition for Asian American Leaders, or CAAL, and they're using the funding to launch a new initiative called CAAL Ignite. It's a grant program that provides $10,000 to $15,000 to Asian American entrepreneurs and small business owners in the state.
The applications opened this week for the grant. So joining us to share more is ThaoMee Xiong, the executive director of CAAL. Thank you for being here.
THAOMEE XIONG: Hi. Thank you for having me.
NINA MOINI: And also joining us is Laura Boller, who runs a hair and makeup business, Laura B Beauty, who's a part of the CAAL community. Thank you for being here as well, Laura.
LAURA BOLLER: Hi. Thank you for having me.
NINA MOINI: It's wonderful to have you both, both from the organization's perspective and as a small business owner. ThaoMee, would you start by telling me about CAAL and the work that you generally do?
THAOMEE XIONG: Yes. So CAAL stands for the Coalition of Asian American Leaders. And we started in 2013 with the vision to be an umbrella organization for all the Asian American organizations that at that time were ethnic specific, so like Asian American Partnerships, Vietnamese Social Services, Cambodian American Partnership.
And our goal was not to duplicate the work of the existing organizations, but except be a policy and advocacy organization doing grant making and leading on the research and data specific to the Asian American community here in Minnesota.
NINA MOINI: And Laura, how did you get involved with CAAL then as a business owner?
LAURA BOLLER: Yeah, I was a recipient of one of CAAL's grants about two years ago for Asian-owned businesses. And in the past kind of year, I've worked pretty closely with CAAL to help them pass a bill that will grant $200,000 for Asian entrepreneurs in Minnesota, and also just help them advocate for the Asian American community in Minnesota as a small business owner.
NINA MOINI: Yeah. So ThaoMee, $2 and 1/2 million is a lot of money. That must have been exciting. Tell me about the moment you learned that you all were chosen from Mackenzie Scott to get some of this funding.
THAOMEE XIONG: Yeah. So we got a phone call. First it was an email communication, and I had actually missed it. And so around midnight, they tried reaching out to me again. And then the next day I scheduled a call. And they shared with me that we had been on the list to receive the grant. And I was in complete shock because a lot was happening, both in the sector and our organization.
And when I got the news, it was just such a huge affirmation about the work that we were doing in the community and the direction in which we should be going.
NINA MOINI: And tell me about Ignite, this project that's come out of this funding specifically. How does it work? How can people utilize it?
THAOMEE XIONG: So the CAAL Ignite fund was initiated by the board in our team in response to two things-- The increase in anti-Asian hate and because nonprofits in Minnesota, Asian American nonprofits in Minnesota are severely underfunded.
So there was a report released in 2022 by the Asian American and Pacific-- APIB, which is located in San Francisco, and it said that for every $100 that philanthropy gave out, only $0.42 went to Asian American organizations. That's $0.42 for every $100. But nationally, it's even worse. For every $0.20-- I mean, for every $100, only $0.20 went to Asian American organizations.
So both the underfunding of Asian American nonprofits and the need for Asian American nonprofits to be strong, to be able to respond to current events, such as the increase in anti-Asian hate, was really critical. And so CAAL has already had a history of doing grant making, but our grants for individuals were only $2,500. And now we can increase it to $10,000. And then for our small businesses, it was $5,000. Now we can increase it to $15,000.
NINA MOINI: Wow. OK. And Laura, as a business owner yourself, what does it mean to get $10,000 or $15,000?
LAURA BOLLER: Yeah, that would be huge, especially for me. I started my business almost four years ago with the goal of showcasing more diversity and inclusivity in the Minnesota wedding industry. And I basically built it from the ground up, having no experience in being a business owner or an entrepreneur. So having $15,000 means that we can expand our team, possibly look for a brick and mortar, and we would be able to take on more Asian American clients.
This has been our busiest year yet, with more than 50% of our inquiries who are Asian American brides, which is more than ever before. So it's clear that there's a strong need for hairstylists and makeup artists who know how to do Asian makeup and work with all skin tones and hair types. So having $15,000 would be pretty life-changing for our business.
NINA MOINI: Yeah, it would be for a lot of people. I mean, that's not an insignificant amount. Why is it important, ThaoMee, to bring this funding and to bring awareness to Asian American businesses in particular? Maybe is it now more than ever, or what are you thinking about just being able to support Asian American businesses? I know you said that Asian American hate was part of the reason that you all wanted to bring more awareness to these entrepreneurs.
THAOMEE XIONG: Yep. So there was a study done out of Boston a few years ago that said Asian American women are the fastest-growing entrepreneur sector, but they experienced significant challenges in accessing funds. So it was really hard for them to get loans. It was really hard for them to break into the industries that we were trying to break into, which was a result of language access as one of them, because many Asian Americans speak multiple languages.
And then two, the perception that Asian American women are not entrepreneurial. And they're seen in these very stereotypical ways. And so that's really impeded the ability of Asian American entrepreneurs to be able to really have an entry point into these sectors. But we've seen that once they have the opportunity to have an entry point into these sectors, they're actually extremely successful.
And so our hope is, one, to change the narrative that Asian Americans are actually very successful entrepreneurs. And there's a huge need for them, as Laura indicated. And then number two is that building economic wealth within our communities really helps us to be more civically engaged and vocal and to be able to participate in our democracy so that we get to make decisions that impact our livelihood. And one of those things is financial stability.
NINA MOINI: Laura, what do you think of what ThaoMee is saying? Are those experiences that you identify with? How was it for you starting out?
LAURA BOLLER: Yeah, part of the reason I chose to start my business is that I'm a half Korean American adoptee. I grew up in a predominantly white community in Minnesota, so I definitely know the importance of finding your people and finding your community and people who look like you.
So I think it's extremely important to recognize that there is a need for more inclusivity, not just in the Minnesota wedding industry, but at large. And there is a need for people who do work with all skin tones and hair types within the Minnesota wedding industry.
NINA MOINI: You saw a need and you wanted to fill it. That's how a lot of entrepreneurs start out, and it takes a lot of guts. ThaoMee, how can people access this? What businesses qualify generally? Tell people how they could submit an application at this point because they open tomorrow, right?
THAOMEE XIONG: They open on Wednesday, January 14, and they can access the application online. Or they can go to our website today and sign up to get the notifications so it's sent directly to their email. And right now, the type of businesses that qualify, the requirements are pretty simple. You have to not make more than a certain threshold. And I think it's something like $2 million. You can have more revenue than that. And you have to have under 10 employees.
And you have to be registered with the Secretary of State's office, as well as have some proof of income in the past two years. So the requirements are pretty simple, but it's also narrowly focused. It's not for the thriving large Asian American businesses. It's for the Asian American entrepreneurs who need that extra push to get over the threshold to be able to grow.
NINA MOINI: OK, so people can go online and see if they qualify. I'll give you the last word here, Laura. Do you have any advice for people who don't have a lot of background in starting a business. But they've always had an idea and they're nervous about getting started? What would be your mini pep talk for them?
LAURA BOLLER: I think just do it. It's never too late. I started my business going to school full-time and also owning a business with absolutely no experience in being a business owner or entrepreneur. But you have to have passion. You definitely have to be passionate about what you do. But you learn as you go. One of the biggest accomplishments that I've ever done was starting my business. And I didn't really know what would happen.
NINA MOINI: All right. So don't give up. Well, I thank you both so very much for coming on and sharing with us today. Thank you.
THAOMEE XIONG: Thank you.
LAURA BOLLER: Thank You.
NINA MOINI: All right. Thanks to both ThaoMee Xiong and Laura B Beauty.
The applications opened this week for the grant. So joining us to share more is ThaoMee Xiong, the executive director of CAAL. Thank you for being here.
THAOMEE XIONG: Hi. Thank you for having me.
NINA MOINI: And also joining us is Laura Boller, who runs a hair and makeup business, Laura B Beauty, who's a part of the CAAL community. Thank you for being here as well, Laura.
LAURA BOLLER: Hi. Thank you for having me.
NINA MOINI: It's wonderful to have you both, both from the organization's perspective and as a small business owner. ThaoMee, would you start by telling me about CAAL and the work that you generally do?
THAOMEE XIONG: Yes. So CAAL stands for the Coalition of Asian American Leaders. And we started in 2013 with the vision to be an umbrella organization for all the Asian American organizations that at that time were ethnic specific, so like Asian American Partnerships, Vietnamese Social Services, Cambodian American Partnership.
And our goal was not to duplicate the work of the existing organizations, but except be a policy and advocacy organization doing grant making and leading on the research and data specific to the Asian American community here in Minnesota.
NINA MOINI: And Laura, how did you get involved with CAAL then as a business owner?
LAURA BOLLER: Yeah, I was a recipient of one of CAAL's grants about two years ago for Asian-owned businesses. And in the past kind of year, I've worked pretty closely with CAAL to help them pass a bill that will grant $200,000 for Asian entrepreneurs in Minnesota, and also just help them advocate for the Asian American community in Minnesota as a small business owner.
NINA MOINI: Yeah. So ThaoMee, $2 and 1/2 million is a lot of money. That must have been exciting. Tell me about the moment you learned that you all were chosen from Mackenzie Scott to get some of this funding.
THAOMEE XIONG: Yeah. So we got a phone call. First it was an email communication, and I had actually missed it. And so around midnight, they tried reaching out to me again. And then the next day I scheduled a call. And they shared with me that we had been on the list to receive the grant. And I was in complete shock because a lot was happening, both in the sector and our organization.
And when I got the news, it was just such a huge affirmation about the work that we were doing in the community and the direction in which we should be going.
NINA MOINI: And tell me about Ignite, this project that's come out of this funding specifically. How does it work? How can people utilize it?
THAOMEE XIONG: So the CAAL Ignite fund was initiated by the board in our team in response to two things-- The increase in anti-Asian hate and because nonprofits in Minnesota, Asian American nonprofits in Minnesota are severely underfunded.
So there was a report released in 2022 by the Asian American and Pacific-- APIB, which is located in San Francisco, and it said that for every $100 that philanthropy gave out, only $0.42 went to Asian American organizations. That's $0.42 for every $100. But nationally, it's even worse. For every $0.20-- I mean, for every $100, only $0.20 went to Asian American organizations.
So both the underfunding of Asian American nonprofits and the need for Asian American nonprofits to be strong, to be able to respond to current events, such as the increase in anti-Asian hate, was really critical. And so CAAL has already had a history of doing grant making, but our grants for individuals were only $2,500. And now we can increase it to $10,000. And then for our small businesses, it was $5,000. Now we can increase it to $15,000.
NINA MOINI: Wow. OK. And Laura, as a business owner yourself, what does it mean to get $10,000 or $15,000?
LAURA BOLLER: Yeah, that would be huge, especially for me. I started my business almost four years ago with the goal of showcasing more diversity and inclusivity in the Minnesota wedding industry. And I basically built it from the ground up, having no experience in being a business owner or an entrepreneur. So having $15,000 means that we can expand our team, possibly look for a brick and mortar, and we would be able to take on more Asian American clients.
This has been our busiest year yet, with more than 50% of our inquiries who are Asian American brides, which is more than ever before. So it's clear that there's a strong need for hairstylists and makeup artists who know how to do Asian makeup and work with all skin tones and hair types. So having $15,000 would be pretty life-changing for our business.
NINA MOINI: Yeah, it would be for a lot of people. I mean, that's not an insignificant amount. Why is it important, ThaoMee, to bring this funding and to bring awareness to Asian American businesses in particular? Maybe is it now more than ever, or what are you thinking about just being able to support Asian American businesses? I know you said that Asian American hate was part of the reason that you all wanted to bring more awareness to these entrepreneurs.
THAOMEE XIONG: Yep. So there was a study done out of Boston a few years ago that said Asian American women are the fastest-growing entrepreneur sector, but they experienced significant challenges in accessing funds. So it was really hard for them to get loans. It was really hard for them to break into the industries that we were trying to break into, which was a result of language access as one of them, because many Asian Americans speak multiple languages.
And then two, the perception that Asian American women are not entrepreneurial. And they're seen in these very stereotypical ways. And so that's really impeded the ability of Asian American entrepreneurs to be able to really have an entry point into these sectors. But we've seen that once they have the opportunity to have an entry point into these sectors, they're actually extremely successful.
And so our hope is, one, to change the narrative that Asian Americans are actually very successful entrepreneurs. And there's a huge need for them, as Laura indicated. And then number two is that building economic wealth within our communities really helps us to be more civically engaged and vocal and to be able to participate in our democracy so that we get to make decisions that impact our livelihood. And one of those things is financial stability.
NINA MOINI: Laura, what do you think of what ThaoMee is saying? Are those experiences that you identify with? How was it for you starting out?
LAURA BOLLER: Yeah, part of the reason I chose to start my business is that I'm a half Korean American adoptee. I grew up in a predominantly white community in Minnesota, so I definitely know the importance of finding your people and finding your community and people who look like you.
So I think it's extremely important to recognize that there is a need for more inclusivity, not just in the Minnesota wedding industry, but at large. And there is a need for people who do work with all skin tones and hair types within the Minnesota wedding industry.
NINA MOINI: You saw a need and you wanted to fill it. That's how a lot of entrepreneurs start out, and it takes a lot of guts. ThaoMee, how can people access this? What businesses qualify generally? Tell people how they could submit an application at this point because they open tomorrow, right?
THAOMEE XIONG: They open on Wednesday, January 14, and they can access the application online. Or they can go to our website today and sign up to get the notifications so it's sent directly to their email. And right now, the type of businesses that qualify, the requirements are pretty simple. You have to not make more than a certain threshold. And I think it's something like $2 million. You can have more revenue than that. And you have to have under 10 employees.
And you have to be registered with the Secretary of State's office, as well as have some proof of income in the past two years. So the requirements are pretty simple, but it's also narrowly focused. It's not for the thriving large Asian American businesses. It's for the Asian American entrepreneurs who need that extra push to get over the threshold to be able to grow.
NINA MOINI: OK, so people can go online and see if they qualify. I'll give you the last word here, Laura. Do you have any advice for people who don't have a lot of background in starting a business. But they've always had an idea and they're nervous about getting started? What would be your mini pep talk for them?
LAURA BOLLER: I think just do it. It's never too late. I started my business going to school full-time and also owning a business with absolutely no experience in being a business owner or entrepreneur. But you have to have passion. You definitely have to be passionate about what you do. But you learn as you go. One of the biggest accomplishments that I've ever done was starting my business. And I didn't really know what would happen.
NINA MOINI: All right. So don't give up. Well, I thank you both so very much for coming on and sharing with us today. Thank you.
THAOMEE XIONG: Thank you.
LAURA BOLLER: Thank You.
NINA MOINI: All right. Thanks to both ThaoMee Xiong and Laura B Beauty.
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