Leading African American economic organization, Let’s Buy Black 365 (LBB), is encouraging black business owners to apply for a portion of their $1 million capitalization pool initiative. In attempts to stimulate growth for marginalized communities, LBB will provide black-owned businesses with effective growth services to sustain its infrastructure. Selected applicants will receive a 3-6 month direct growth implementation that will help push the business to become a corporate enterprise. Let’s Buy Black 365 spokesperson, Nataki Kambon, told Black Star News that their business services will cover “accounting, marketing, operations, human resources and administrative infrastructure” to not only boost profits but overall efficiency.
Every time we met this issue came up of how do we get mass resources to Black-owned businesses to help the Black economy reset itself. So, the idea was hatched if governments can stimulate their businesses and economies why can’t we do the same in our own communities?
-Nataki Kambon of Let’s Buy Black 365
Black-Owned Businesses Are in Need of Capital
Despite the economy slowly showing signs of recovery, black-owned businesses are still struggling to compete with companies and entrepreneurs with more access to wealth. Since 1992, the base tax bracket has been bringing home less and less revenue each year and is now generating less than half of the nation’s total income for the first time in recorded history.
Funding for black-owned businesses are scarce which is why Senators such as Kirsten Gillibrand have been urging Congress to increase the limit of maximum microloans distributed per year. Black Demographics reported that over 90% of black-owned businesses are sole proprietorships with no paid workers and these individual corporations are still operating below the poverty line. In addition, with net neutrality rulings and Facebook’s adjusted news feed policies, black-owned businesses are at even higher risk of being overlooked by consumers in need of their products/services. Still, black-owned businesses create 1 million jobs along with producing annual revenues of $187.6 billion so with the right assistance and resources, smaller minority-owned businesses can continue to stake their claim in the nation’s economy.
Funding and Other Resources for Black-Owned Businesses
Legal research writing and litigation firm, Just Write Legal, is expanding its outreach by offering black-owned businesses with business writing, contract administration, and mediation services. Founder and owner, Angela Majette, feels that the most consistent area of weakness working with smaller businesses is written communication. After a growing amount of requests from clients to support them in such matters, Just Write Legal decided to offer the services permanently. Majette told Black News that: “Effective communication is crucial for the success of any business…Our service allows business owners to focus on their product or service, while we focus on presenting the business in a polished manner in written communications.”
Earlier this month, Wells Fargo Bank announced its first Small Business Diverse Community Capital (DCC) Program awarding $6.6 million in funding for black-owned businesses. This capital will be distributed in the form of loans and grants to 12 Community Development Financial Institutions (CDFIs). These institutions are privately-owned nonprofit organizations that will than make the funds available for black-owned businesses and entrepreneurs. Moreover, the CDFIs will also help selected applicants with technical support, marketing and consult business owners on the best course of action for growth. Grants generally vary from $50,000 to $500,000 and loans are between $100,000 to $7 million. Out of the 12 round 4 DCC recipients, the highest amount was awarded to San Antonio-based LiftFund receiving $1,350,000 in funding.
Will Things Get Easier for Black-Owned Businesses?
Yesterday we celebrated the 50th anniversary of Rev. Martin Luther King Jr.’s official holiday and cherished his selfless acts that, till this day, promotes a movement of social and economic empowerment. Let’s Buy Black 365 is strengthening the efficiency of black-owned businesses that will ultimately cause a ripple-effect to serve the best interests of African American communities nationwide. Even expansive corporations such as Wells Fargo are creating programs to capitalize on the skills and talents of black business owners. It seems that this particular sector is an untapped market that has much to contribute and when positioned correctly, has the ability to do great things for the economy.
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