Displaying items by tag: Bank Loans

Since April, when the $2 trillion COVID-19 Stimulus Bill was passed and the Small Business Administration’s Paycheck Protection Program (PPP) began to address COVID-19’s financial hits, the first study to look at the novel coronavirus’ impact on Black and Latinx business owners, conducted by the Color Of Change and UnidosUS, found that 45 percent of these businesses will have to close by the end of the year, and only one in 10 reported that they had received funding.

Responding to the lack of federal help for entrepreneurs of color, former National Basketball Association (NBA) all-star Magic Johnson and Rafael Martinez, majority owner of the asset-based lender MBE Capital Partners, announced they will provide $100 million in loans, on MSNBC’s “PoliticsNation with Al Sharpton,” on May 17.

“I built my business in urban America, in the inner city and I was once one of those small business owners. So, I know how important it is to keep those employees working, keep those Black and Brown people working in those small businesses in our community,” Johnson told Sharpton. “And we can’t afford to let these people lose their businesses who have been working so hard to build their business and we want to help them grow their business and have scale, because that’s what’s important. Because if they get scale, then they can hire more people and the more people working the better for our community; because we know how high unemployment is in our community and this virus really affected our community in two different ways—health-wise as well as financial wise.”

The Federal Stimulus Survey Findings study, conducted from April 30 to May 12, showed that Black and Latinx business owners are indeed worried about the issues that Johnson mentioned. These concerns include not receiving federal assistance to prevent layoffs, being unable to suspend foreclosures until the crisis ends, attaining financial assistance to help them pay salaries and other business expenses and putting a pause on negative credit hits.

Upon recognizing that the PPP left many small business owners of color out in the cold, Martinez told Sharpton that when he and Johnson decided to fill the federal financial void, they did so in a week. “We want to make sure that everybody understands this is a call to action. This money is not going to wait for anybody. So, it’s there, we’re doing our job, and there’s a lot more to be done,” Martinez said. “Our goal with Magic and the teams is really to reach 100,000 businesses. So, we need action yesterday, not tomorrow or next week. Nobody is going to wait for us.”

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While Black entrepreneurs have complained about problems with the Small Business Administration’s financial assistance programs owners and advocates of Black banks say they could be a help and a resource of information and capital for Black firms during the coronavirus pandemic.

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OneUnited Bank, the largest Black-owned bank in the country, is proud to announce the launch of its Small Business Administration Paycheck Protection Program. OneUnited Bank, a Preferred SBA 7(a) lender, is offering PPP loans to its existing and new customers on a nationwide basis through its state-of-the-art online and mobile banking platform.

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Thursday, 20 September 2018 13:28

Texas Black-Owned Bank Opens Branch in Atlanta

There are names synonymous with community banking in the city of Atlanta, George G. Andrews must be included among them.

For more than 10 years, Andrews served as president and CEO of Capitol City Bank & Trust Company, a black-owned community bank in the Southwest community of Atlanta.

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Minority-owned banks are crying foul about the federal government snubbing them for tax credits they say could generate economic development in the nation’s most needy communities....

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Minority-owned banks are claiming that the federal government has shut them out of tax credits intended to spur economic development in under-served communities. They are referring to last month’s distribution of funds by the Community Development Financial Institutions (CDFI) Fund, an arm of the Treasury Department.CDFI issued $3.5 billion in New...

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Tuesday, 09 June 2015 08:00

Chicago’s Oldest Black Bank In Jeopardy

Seaway Bank and Trust Co., on the South side of Chicago, may become the last black-owned financial company left standing in the Windy City. Currently, Seaway Bank ranks third on the BE100s Financial Services Banks list with $551.6 million in assets in 2014.According to Crain’s Chicago Business, Illinois Service Federal Savings & Loan, a thrift...

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Sunday, 01 April 2012 05:00

Accessing Fresh Capital Sources

CapitalRaisingIdeas

Right now, all sorts of nonprofit causes and entertainment projects can receive cash donations from ordinary people through crowdfunding websites such as IndieGoGo.com, KickStarter.com, and RocketHub.com. But because of securities laws intended to prevent fraud, for-profit businesses aren’t legally allowed to raise funds from large numbers of d...

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