More than other segments, African American-owned small business are experiencing a lack of access to credit. Based on the 2010 Census, small businesses have accounted for the largest driver of job growth in the United States and the largest segment in aggregate, with 99.7% of U.S. employer firms defined as small businesses. The African American segment has also contributed to the small business growth in the United States at an astonishing rate. From 2002-2007, black-owned businesses increased at triple the national rate, 60.5% versus 18%, respectively.
Without access to credit, businesses face an increased likelihood of failure, which trickles down to the broader community by paralyzing economic growth and development. Currently, there are many organizations tasked by the U.S. Small Business Administration (SBA), the U.S. Treasury, and other government agencies to provide capital and related resources to underserved small businesses, but the shortcomings of these programs are apparent.
On Monday, September 26, 2016, SBA and the Milken Institute announced the Partnership for Lending in Underserved Markets (PLUM) initiative. This trailblazing program is designed to develop and test initiatives that will provide capital to minority owned-businesses more effectively, throughout the United States.
The PLUM Task Force launch was held at the Reginald F. Lewis …read more