Coronavirus and social distancing is the new normal no one was prepared for. As the unemployment rate among black communities continues to rise (In February, the rate jumped from 5.8 percent to 19 percent) the risk is higher than ever before for black owned small businesses to recoup, thrive, or even break even to conservative projections.
Here are some stats on the current state of black small businesses:
💰Historically large banks only approve about 60% of loans from white small businesses owners, 50% for Hispanics and 29% of loans sought by Black small business owners. ⠀
💰there are 2.6M black owned businesses and 2.5M have no employees. Many are solopreneurs with not a lot of cushion. ⠀
💰COVID-19 loans prioritize small businesses with employees. Or businesses with pre-existing relationships with banks. That literally takes out 80%+ of black small biz owners. ⠀
💰 The median white family has 10x the amount of wealth as the median Black family. We have less savings to lean on collectively.⠀
So what does this mean? It means that now more than ever, we have to save ourselves. We have to as a collective find ways to support our black owned small businesses so that we can continue to thrive.
Here are a few ways you can take action and make an impact right now:
While the United States will one day correct from economic hardship it’s important to remember that it won’t be “back to normal” for the black community until much longer down the line. Here at WorkSmart we want to challenge you to support and care for one another, and if we’re vigilant perhaps we’ll emerge stronger for it.
WorkSmart Editorial Team
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