Heard on the Street – here’s what we were reading last week:
What We Know About Black Businesses: We now have new data about the state of Black-owned businesses on the eve of COVID-19, which builds on the practical knowledge and inspiring work of a growing group of reflective practitioners at Accelerator for America, Forward Cities, Next Street, The Enterprise Center in Philadelphia and the Minority Business Accelerator in Cincinnati.
This Juneteenth, we should uplift America’s Black businesses: As Black Americans have progressed from being owned to becoming owners, the state of Black businesses can offer insights into the advancement of race relations and democracy in America. And while the nation commemorates the end of slavery this Juneteenth, Black-owned businesses are still being systematically denied financial investments in ways that throttle wealth creation for Black entrepreneurs and national productivity as a whole.
Examining The Funding Challenges For Black-Owned Businesses On Juneteenth: Economic freedom for the former slaves and their descendants has been far from swift, and in many ways, it remains one of the deepest running wounds caused by slavery until today. However, in the 21st century, black entrepreneurship is on the rise. But black-owned firms typically face greater challenges in securing capital than their white-owned counterparts.
For the Smallest Firms Seeking PPP Money, Fintechs Are the Way to Go: For micro-businesses and sole proprietors, one of the best routes to the remaining funds in the Paycheck Protection Program may well be applying for a loan through a fintech lender. Their advanced technology and automation can reduce lending costs, which improves the economics on smaller loan amounts and makes lending faster and more convenient. Fintechs oftentimes can offer quick loan approvals and relative ease of use in exchange for higher fees, in some cases, than traditional lenders.