Heard on the Street: Celebrating workhorse small businesses, using NMTC for small loan funds, and why black banks need policy support

By July 22, 2019 Heard on the Street

Heard on the Street – here’s what we were reading last week:

Forget Unicorns – As More Tech Companies Go Public, It’s Time To Celebrate Workhorses: Opportunity Fund’s Luz Urrutia shares how we’re experiencing “IPO mania,” and how misplaced this “unicorn-hunting” can be. Instead, we should focus on the over 30 million small businesses in the US, which account for almost half of all private-sector employment and pump almost $6 trillion into non-farm GDP each year.

TREND: Increased Use of the NMTC to Finance Small Business Loan Funds: The NMTC is not known for small business financing, but a significant percentage of NMTC financed projects receive no more than $4 million in NMTC allocation. NMTC allocation can be used to capitalize loan pools that make small loans ($50,000 to $4,000,000) to businesses and community facilities.

Why Black Banks Need Policy Support, Not Just Deposits: Historically black banks have had a strong role in black communities. Their loans often finance projects that other banks wouldn’t take on, and at fairer interest rates. And yet partnering with or addressing the top priorities of historically black banks hardly registers a blip on policymakers’ radar screens.

DEI Article of the Week from NXST for Inclusive Impact:

It Was Never About Busing: The term “busing” is a race-neutral euphemism that allows people to pretend white opposition was not about integration but simply about a desire for their children to attend neighborhood schools.