Small Businesses

Tapping into the programs that support Black-owned businesses

  • 3 min Read
  • January 20, 2022

Author

Escalon

Table of Contents

Entrepreneurship has never been easy for Black business owners. Now a growing body of research shows Black entrepreneurs have been disproportionately hurt by the pandemic-linked economic downturn. For example,
nonprofit Interise
reports that while roughly 20% of all small businesses nationwide closed due to the pandemic, that figure doubled for Black-owned businesses.


Breaking it down



Dealing with decades of economic inequality: Only 4.3% of America’s 22.2 million business owners are Black, according to a February 2020 Brookings Institution report, which also finds Black-owned businesses start with about one-third less capital than their white peers and experience difficulties raising money from traditional investment sources. And while 7% of white entrepreneurs obtain a loan in their first year of business, only 1% of Black business owners are able to do so.


Hardest-hit by the pandemic: The pandemic has affected almost every small business in the U.S., but Black- and minority-owned businesses have been among the hardest hit. A 2020 report by the Federal Reserve Bank of New York finds that Black-owned businesses experienced the most acute decline during the pandemic, dropping 41% from February 2020 to April 2020 versus 17.5% among white business owners. Paycheck Protection Program loans reached only 20% of eligible firms in areas with the highest densities of Black-owned firms


Struggling to rebuild: For Black-owned businesses, preexisting inequities have been exacerbated by the economic crisis brought on by the pandemic. These entrepreneurs now face an unequal path and a potentially longer road to recovery.


Below are three key resources Black business owners can consider tapping into:


• Networking




With conferences and workshops now having shifted mostly online, entrepreneurs are making connections in virtual chats such as Zoom coffees and Clubhouse rooms. Come prepared with an intro script, and make a point to book time with people who seem like good connections.


It is also an opportune time to partner up, said author and Porter Brown Associates CEO Kathey Porter. The growing recognition and outcry over police brutality and systemic racism has led Black entrepreneurs to become more receptive to teaming up with others, which can be a great way to build a stronger network.


• Support and advocacy



Black Business Association

Black Founders

Black Owned Everything

Coalition to Back Black Businesses

Minority Business Development Agency

National Minority Supplier Development Council

SCORE for Black Entrepreneurs

U.S. Black Chambers

Ureeka


• Lending and grants



Business owners can peruse the grants.gov site to view over 1,000 federal grant programs, conduct an in-depth search, learn about the application requirements as well as process, and ultimately apply.


Under a plan announced in December 2020  by Vice President Kamala Harris and Treasury Secretary Janet Yellen, the U.S. Treasury will allocate $8.78 billion to boost lending to Black-owned businesses and improve access to banking through the new Emergency Capital Investment Program.

Talk to our team today to learn how Escalon can help take your company to the next level.

  • Expertise you can trust

    Our team is made up of seasoned professionals who bring years of industry experience to the table. You gain a trusted advisor who understands your business inside out.

  • Quality and consistency

    Say goodbye to the hassles of hiring, training and managing in-house finance teams. You will never have to worry about unexpected leave of absence or retraining new employees.

  • Scalability and Flexibility

    Whether you’re a small business or a global powerhouse, our solutions scale with your needs. We eliminate inefficiencies, reduce costs and help you focus on growing your business.

Contact Us Today!

Tap into the latest insights from experts in your industry

People Management & HR

Streamlining HR Processes, Best Practices for Small Business Owners 

Human Resources (HR) might feel like an afterthought for many small business owners juggling day-to-day demands, yet it has a...

Read More
People Management & HR

Leveraging AI for Efficient People Operations

Artificial intelligence (AI) isn’t just for tech giants anymore—it’s increasingly accessible to small and mid-sized businesses seeking a competitive edge...

Read More
Accounting & Finance

How to Set Up Payroll, A Guide for Small Business Owners 

Setting up a payroll system is an essential step that helps small business owners pay their employees accurately and on...

Read More
Accounting & Finance

Financial Planning for the Future, Setting Long-Term Business Goals

While small businesses must handle day-to-day tasks—like managing payroll or closing monthly books—long-term planning is the compass that keeps them...

Read More
People Management & HR

Benefits Administration, What Small Business Need to Know

Benefits administration can be a game-changer for small businesses aiming to attract and retain top talent. While salaries remain an...

Read More
Accounting & Finance

AAP vs. Cash Accounting: Which Method Is Best for Your Growing Business? 

Choosing the right accounting method can significantly impact how you track financial performance, manage taxes, and plan growth. Two common...

Read More
Accounting & Finance

Beyond Bootstrapping: Advanced Cash Flow Management for Scaling Companies 

Bootstrapping—financing growth through internal cash flow—is a hallmark of many successful startups. But as businesses mature past their initial stage,...

Read More
Technology & Security

Building a Scalable Tech Stack: How to Choose the Right Tools for Growth 

In today’s business landscape, technology is more than a convenience—it’s a strategic asset that can supercharge growth. But as you...

Read More
Accounting & Finance

How to Reduce Month-End Close Time Without Sacrificing Accuracy 

The month-end close can feel like a perpetual scramble—collecting invoices, reconciling accounts, fixing last-minute errors. A drawn-out close not only...

Read More