Business

Treasury gets $8.7 billion in Federal Funds Targeted at Minority Businesses

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More than other racial groups, black-owned businesses have been hit harder by COVID-19 and are still recovering from the pandemic.

However, some good news is that they will probably be among the beneficiaries of a new plan by the Vice President. Kamala Harris and the Minister of the Treasury Janet Yellen provides $8.7 billion in federal funding to financial institutions that cater to underserved and minority small business owners.

The announcement was made Tuesday at the annual Freedman’s Banking Forum at the Treasury Department yahoo finance. The required funding is Harris’ $12 billion raised last year. It happened when she was a Senator and worked to get funding with other senators, including Cory Booker, Chuck Schumer, and Representative Maxine Waters, chair of the House Financial Services Committee.

The funding brought in due to the economic disruption caused by COVID has hit black-owned businesses particularly hard. Ownership for them fell 41% between February and April 2020. According to a report by the US House of Representatives Small Business Committee, that was the largest decline of any racial group. which race.

Even more, about 53% of Black business owners have seen revenue drop by 50% or more since COVID-19 has become a widespread concern, compared with only 37% of white business owners. This year may not turn out any brighter as 47% of small business owners are not optimistic about their success in 2021. What’s worse is that black-owned businesses are less likely to get it. loans from a bank 20% larger than white businesses.

The nation’s first Black Vice President, Harris, is said to have worked with Secretary Yellen to get funding for programs through Community Development Finance Institutions (CDFIs) and Development Organizations Minority Development (MDI). This effort is intended to help small business owners in underserved communities access capital to start or expand businesses.

“In America today, deep racial disparities continue to prevent people from achieving all that they can be,” Vice President Harris said at the forum.

https://www.blackenterprise.com/federal-funding-effort-could-provide-8-7-billion-to-black-and-other-minority-businesses/ Treasury gets $8.7 billion in Federal Funds Targeted at Minority Businesses

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