Black Economic and Business Stories for Sept. 27th to Oct. 4th

Top Stories

Cleveland Clinic Thrives While Its Black Neighbors Fall Behind (Bloomberg)

Moms, Black Americans and educators are in trouble as economic recovery slows (Washington Post) – Good unemployment charts by race and industry sector

Moms and Women of Color Most Affected by the Economic Downturn in Coronavirus (One Green Planet)– The economic consequences of COVID disproportionately affect moms and women of color.

Racial Wealth Gap Put Americans On Uneven Financial Footing Heading Into Pandemic, Fed Survey Finds (WBUR).

Illinois and Newark seem to be on top of things

Newark Launches Investment Fund To Support Black- And Latino-Owned Businesses (CBS New York)– The City of Newark has partnered with several groups to launch a $100 million investment fund.

Newark Mayor Ras Baraka launches “40 Acres And A Mule Fund” to help minority-owned businesses (Revolt)– Because of the unequal access to capital and small number of PPP loans to minority  businesses, Mayor Baraka will launch the FAM Fund, to provide capital.

Illinois Legislative Black Caucus highlights agenda to close state’s racial wealth gap (WGEM) – Black Caucus members highlight the challenge for Blacks in attaining economic mobility.

Illinois Senate committees looks at land use, gentrification, effects of redlining (Belleville News Democrat)

Illinois needs the Fair Tax for racial equity (Chicago Sun Times) – Taxpayers with incomes less than $250,000 dollars payed an extra $4 Billion that if Illinois had graduated income tax on the rich.

Coronavirus / PPP / Recession

The covid-19 recession is the most unequal in modern U.S. history (Washington Post) – Long, but a good description of where we are: September 2020.

The First Female Recession Threatens to Wipe Out Decades of Progress for U.S. Women (Bloomberg)

Moms, Black Americans and educators are in trouble as economic recovery slows (Washington Post) – Good unemployment charts by race and industry sector

$2 million more in small business aid coming from Baltimore Development Corp. (Biz Journals) – The BDC allocated 74% of loans to minority-owned businesses.

As small-business owners try to survive the pandemic, experts share this advice (CNBC) – Racial divide and pre-existing social and economic practices result in the greater suffering of Black, Latino, and Asian businesses due to COVID-19

NC launches program to help small businesses harmed by COVID-19 (WWAY) – Minority and women-owned businesses given access to $12 million in grants

Black businesses tap “resiliency funds” amid COVID (Yahoo News)– “Resiliency funds” are helping Black-owned businesses stay afloat during the coronavirus pandemic.

Moms and Women of Color Most Affected by the Economic Downturn in Coronavirus (One Green Planet)– The economic consequences of COVID disproportionately affect moms and women of color.

Racial Wealth Gap Put Americans On Uneven Financial Footing Heading Into Pandemic, Fed Survey Finds (WBUR).

Protest / BLM

No protest or BLM stories related to business or the economy

Black Business General

Study Aims To Measure Economic Impact Of Tri-State’s Black-Owned Businesses (WVXU Public Radio)

$1.2 million earmarked for minority owned businesses in Forsyth County (Winston-Salem Journal) –Black and Hispanic business fund surpasses $1 million goal, already bringing in $1.2 million in commitments

Grants for small firms available through Black Business Association of Memphis (Commercial Appeal) — $300 grants for black businesses provided through federal CARES Act

Stacy’s Rise Project Partners with Hello Alice to Fund Grants to Black Women Business Owners (Vending Market Watch) – 15 Black women entrepreneurs to receive a total of $150,000 in business grants and services.

U.S. Black Chambers President: Philadelphia’s Black-owned businesses need help (Pennsylvania Capital Star) – Call for aid to be applied specifically to Black businesses. The minority label is too vague and unintentional at this current juncture.

Tabor 100 Launches Black Business Equity Fund To Support Seattle-Area Businesses (Seattle Medium) – BBEF launches with $1,299,000 fund, with the goal of reaching $4.5M over next three years

Up to $10,000 Grants for Small, Black-Owned Broward Businesses Launched (Tamarac Talk) – Grant looks to serve minority-owned businesses, who were underserved by the Paycheck Protection Program.

Black Women Entrepreneurs Have Been Hit Hard In The Pandemic. The Black Women’s Business Collective Is Providing Relief. (Madame Noire) – Since 2007, the number of minority women owned businesses surged by 163 percent. The pandemic put a halt on this growth.

502 Black Eats Week to spotlight Black-owned restaurants in Louisville (Courier Journal) – 502 Black Eats Week spotlights black-owned food and drink places, capitalizing on the current momentum to support black business.

Study Aims To Measure Economic Impact Of Tri-State’s Black-Owned Businesses (WVXU)— The UC Economics Center plans to use this data to attract new businesses to the Greater Cincinnati area.

Newark Launches Investment Fund To Support Black- And Latino-Owned Businesses (CBS New York)– The City of Newark has partnered with several groups to launch a $100 million investment fund.

The new generation of black bankers fighting for a place at the top table (The Telegraph)– Three of the rising star finalists for this year’s Black Business Awards talk about their experiences in the City.

Black Business Specific

Co-founder Falayn Ferrell talks about Black Restaurant Week in New Orleans (nola.com)

Black owned bakery in Utah doing well (Marketplace) – Utah Black-business owner sees business soar in the wake of racial protesting

Bank offers deal on checking accounts to help build Black wealth (Detroit Free Press)

Black entrepreneurs stir up the industry (The Miami Times) – Pernell Cezar and Jarrhod Johnson launch coffee brand, allow consumers to invest in Black communities

‘The message is clear’: Shoreline coffee shop owners believe Molotov cocktail attack was racially motivated (King 5) – Coffee shop faces burn threat, thinks it was connected to their promotion of Black business and culture

Jobs / Workers / Unemployment

AP Explains: 5 key takeaways from the September jobs report (Chattanooga Times Free Press) – Temporary help hiring is falling a know leading indicator of unemployment and recessions.

September Jobs Report Shows Slowdown in Recovery (NY Times)

Childcare and economic stability go hand in hand (San Francisco Bay View)

U.S. Black-white joblessness gap narrows, but not for right reasons (Reuters)

The Persistent Black-White Unemployment Gap Is Built Into the Labor Market (Center for American Progress)— The Black unemployment rate has been consistently twice of the White unemployment rate.

Big Business / Corporate

A Black activist will offer creative leadership and antiracism guidance at Reebok (Boston Globe) – Black activist hired as top executive at Reebok, will report directly to the president. Will handle design and antiracism efforts.

Merchants develop BLM products (Miami Times) – White-owned business commits to making BLM products, wants other White sellers to uplift Black businesses

Constellation Brands draws interest after committing $100 million to Black-owned businesses (CNBC) – The import Corona Beer.

California law mandates diversity in corporate boardrooms (ABC News) – California bill requires publicly traded companies to have one board member from an underrepresented community

AT&T Supports Groups that Create Economic Opportunity, Help Small Businesses in Newark (Insider NJ) – AT&T contributes $175,000 to support local businesses in Newark and ensure equality in minority communities.

Investment firm pledges $5 million to minority-owned businesses in Chicago (Chicago Business).

Cream of Wheat to remove Black chef from the box as it updates imagery in wake of calls for racial equality (USA Today)– The brand has long been criticized for the use of a smiling Black chef on its packaging and will remove it.

Four Black executives are reportedly leaving insurer AIG, including two responsible for improving diversity at the firm (Business Insider)– AIG promised to improve the diversity of its leadership teams.

Citi Impact Fund secures $50 million to invest in Black entrepreneurs (Impact Alpha).

Inequality

Cleveland Clinic Thrives While Its Black Neighbors Fall Behind (Bloomberg)

Should Florida Raise Its Minimum Wage to $15 an Hour? (Sarasota Magazine) – Florida has Amendment 2 on the ballot that would raise the minimum wage.

Wealth gap over last two decades costs $2.7 trillion in Black income (Atlanta Daily World) – Details from Citigroup report.

Bloomberg Equality: Being Black Is a Pre-Existing Condition (Bloomberg)

Discrimination / Racism

Why Are There Still So Few Black CEOs? (Washington Post)— Black professionals face greater obstacles early in their career, such as establishing relationships, causing them to comprise 1% of the executives running America’s top 500 companies.

Target plans to boost Black employee count by 20% (Digital Commerce) Original Source: Bloomberg— Target responds to years of under-representation by announcing to increase black employee count by 20%.

Reparations

California To Study Reparations For Black Americans (KPBS Public Radio)

Economist, Black History Scholar and Professor James Stewart on Reparations and Economic Equality (Sarasota Magazine)– Professor James Stewart talks about his experiences and how it related to the events we are experiencing today.

Banking / Finance / Investing

Hedge funds lack Black money managers (Reuters)– Only 8.9% of hedge fund firms were owned by ethnic minorities, including Hispanic, Black, Asian and Native Americans.

Sports / Media / Entertainment / Fashion

ESPN and The Undefeated to #ChampionBlackBusinesses during NBA Finals With “Shark Tank” Mentors (Laughing Place) – Mark Cuban and Daymond John to mentor two black businesses during NBA Finals

After the Black Squares: How Black-Led Fashion Organizations are Holding the Industry Accountable (Harpers Bazaar)

VON.tv is a new Black oriented streaming service (WFMJ)

Black voices are still largely absent from mainstream media. It’s time for the industry to take a hard look at itself (The Hamilton Spectator).

Real Estate / Finance / Segregation / Redlining

Illinois Senate committees looks at land use, gentrification, effects of redlining (Belleville News Democrat)

The Effects of the 1930s HOLC “Redlining” Maps (Chicago Fed) – 2017 / August 2020 Update

Black, Female and Head of a Public Real-Estate Company. Meet the Only Person to Fit That Description. (Wall Street Journal)– Leslie D. Hale, the first African-American woman to lead a public real-estate investment trust, is highlighted in this article.

Economics

Why Did Hundreds of Thousands of Women Drop Out of the Workforce? (NY Times) – Lower relative pay to men cause some secondary breadwinners to stay home.

Pre-Pandemic Economy Was Reaching Unprecedented Heights for Black and Hispanic Americans, New Data Show (Foundation for Economic Education) – Conservative

Fixing the Racial Wealth Gap Could Add $5 Trillion to the Economy. Here’s Where to Start. (Barron’s) – Farfetched but interesting

Government / Politics / Election

Oxford, Moody’s: Biden’s Economic Plan Would Create More Jobs, Growth Versus Trump’s (Nasdaq)

Vote yes on Prop R for early childhood education and Prop D (St. Louis American) – Proposition D is a non-partisan primary and a run-off general election.

President Trump visits Atlanta to promote Black Economic Empowerment (WRCB TV)

Republican leaders have long history of initiatives for Black Americans (Boston Herald)

What small-business owners need from the 2020 election (Fortune) – PPP neglects Black business owners’ need for startup and start-over money, says CEO of US Black Chambers

Illinois Legislative Black Caucus highlights agenda to close state’s racial wealth gap (WGEM) – Black Caucus members highlight the challenge for Blacks in attaining economic mobility.

Newark Mayor Ras Baraka launches “40 Acres And A Mule Fund” to help minority-owned businesses (Revolt)– Because of the unequal access to capital and small number of PPP loans to minority  businesses, Mayor Baraka will launch the FAM Fund, to provide capital.

Education

Small Business Development Center at Howard University Helps Small Businesses during Covid-19 pandemic (Howard University)– Small businesses can take advantage of the center’s services to gain access to free support from more than 15 consultants with extensive business experience.

Taxes / Government Policy

Illinois needs the Fair Tax for racial equity (Chicago Sun Times) – Taxpayers with incomes less than $250,000 dollars payed an extra $4 Billion that if Illinois had graduated income tax on the rich.

Education

4 HBCU leaders chart a course for a vibrant future (University Business)

Science / Technology / Apps / Innovation

This new app aims to create a one stop shop for Black consumers (WUSA9)– Black weekly culture is an app that acts as a central location for people to access information about Black businesses and news.

Black-owned businesses should adapt to ecommerce, says Katika’s founder (Technical.ly)– Jason Coles shared ways Black-owned businesses can establish themselves online and better participate in ecommerce.

Black scientists call out racism in the field and counter it (Washington Post).

Caribbean / International

Black Pound Day: Take part in our black-owned business campaign #IAMBOB (Business Live)

Black Economic Empowerment 2020 survey finds: 51 black-owned asset managers manage close to 700 Billion Rand (Financial Mail).

History

Forty acres and a mule: The path to reparations in America (AJC)– This provides a greater explanation of the history behind 40 acres and a mule.

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