Black-owned corporations are bringing significant growth from the Fed. At the Freedman’s Bank Forum on Tuesday (December 14), Vice President Kamala Harris and Treasury Secretary Janet Yellen revealed the U.S. Treasury’s program to spread $8.78 billion –– with a fund “B” –– to assist boost lending to Black-owned industry and key to banking in low-income societies.
The funds are arriving from the Emergency Capital Investment Program –– an industry started this year –– and will be allocated to 186 community-related economic organizations.
“The capital gap continues today; the homeownership gap continues,” Harris stated, highlighting the demand for these significant investments. “Black entrepreneurs are three times more likely to say that a lack of entry to funds negatively impacts their earnings margins,” she counted.
Black companies have been disproportionately influenced by the financial fallout of the Corona Virus epidemic, evidenced by more elevated rates of company closures and more.
Secretary Yellen stated the funding would allow “contain small company owners of color from locking two of their areas. And better yet, it will enable people to unlock two more.”
VP Harris makes an **extraordinary** correlation between equitable access to resources and voting rights at the Freedman’s Bank Forum today.
Part 1/2: pic.twitter.com/zDxjsMqZjZ
— What VP Harris Is Doing (@WhereIsKamala) December 14, 2021
The almost $9 billion will be allocated to economic organizations in 36 states, Washington, D.C., and Guam.
An assessed 54% of accounts will belong to banks and 46% to credit collaborations.
The biggest companies will see more than $200 million individually, while the smaller ones will get less than $100,000.
The meeting was followed by Rev. Al Sharpton, Rep. Maxine Waters, NAACP President Derrick Johnson, HUD Secretary Marcia Fudge, and more.
Congresswoman Maxine Waters and I at the Freedman’s Bank Forum. pic.twitter.com/BDtl0ujibV
— Reverend Al Sharpton (@TheRevAl) December 15, 2021
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