With the launch of the credit card and its existing grant programs, Hello Alice aims to serve entrepreneurs from underrepresented backgrounds and give more business owners access to the funding they need.

Previously, the company has listed Serena Ventures by Serena Williams, restaurateur and TV host Guy Fieri and Silicon Valley Bank as investors. 

A May study by Hello Alice found 78% of small business owners cited access to capital as an obstacle to managing their daily operations, a challenge especially true for 84% of Black owners and 82% of multiracial business owners. The company estimates that $70 million in grants from its program to spur equitable access to capital could assist about 30,000 business owners with their credit by 2025, potentially providing up to $1 billion in credit access.

The new Mastercard offering is designed to “meet the needs of small business owners where they are, breaking longstanding barriers to mentorship, access to credit, and overall financial health for those who have traditionally been denied access,” said Hello Alice cofounders Elizabeth Gore and Carolyn Rodz, per the news release. “In times of economic boom and bust, access to capital remains the leading challenge for all small business owners.”

Hello Alice said cardholders can transition from secured to unsecured credit cards in as little as a year if approved. A secured card often requires the cardholder to provide a security deposit.

Though Hello Alice has differentiated itself by targeting diverse entrepreneurs, other fintechs have also broadly focused on small businesses. Last year, Square, now known as Block, launched an industrial bank and later unveiled a suite of business checking and savings accounts catering to small businesses.

Meanwhile, Mastercard teamed up with two fintech startups earlier this year, Flowcast and Highnote, to introduce a credit card for small and midsize businesses with limited access to credit.

And in June, PayPal tapped Mastercard, Concerto Card Company and WebBank to issue a small businesses-focused credit card.