This Week in ESG and Impact Investing

Source:  U.S. Bureau of Labor Statistics.  Division of Consumer Prices and Price Indexes The January 2025 Consumer Price Index (CPI) increased by 0.5% from December 2024, pushing the 12-month inflation rate to 3.0% . This continued rise in inflation presents distinct challenges for Black and minority-owned businesses, particularly in key industries such as retail, construction, transportation, and food services. Source:  U.S. Bureau of Labor Statistics.  Division of Consumer Prices and Price Indexes Sector-Specific Impacts on Minority Businesses 1. Retail & Consumer Goods (Black and Hispanic-Owned Businesses) Key Data: The index for food at home rose 0.5% , while food away from home increased 0.2% . Apparel prices declined 1.4% , and household furnishings dropped 0.2% . Impact: Minority-owned grocery stores and restaurants face higher procurement costs. Retail businesses may see reduced demand due to price-sensitive consumers adjusting spending. Strategy: B...

The U.S. economy experienced a  2.3% annual growth rate in the fourth quarter of 2024 , culminating in a 2.8% expansion for the entire year. This growth was primarily driven by robust consumer spending and increased government expenditures.  Impact on Black-Owned Firms: Black-owned businesses have demonstrated resilience and growth in recent years. Between 2017 and 2021, these enterprises saw a 43% increase in gross revenue,  rising from approximately $127.9 billion to $183.3 billion . In 2024, Black-owned businesses generated $206 billion in annual revenue and supported 3.56 million U.S. jobs.  The sustained economic growth in 2024 likely provided a favorable environment for Black-owned firms, particularly those in sectors benefiting from heightened consumer spending, such as healthcare, recreational goods, and vehicles. However, challenges persist. Access to capital remains a significant hurdle, with 47% of Black business owners reporting loan application denials...

We are in the intermediate phase of an asymmetric political warfare action involving unconventional political weapons and tactics, such as guerrilla political warfare and political terrorism, as we noted in 2016. https://lnkd.in/ddgx_Pn Still, there are viable Strategic Economic Responses to Corporate Rollbacks of DEI Initiatives in Black Communities.  https://www.linkedin.com/pulse/strategic-economic-responses-corporate-rollbacks-qugte/ Email info@creativeinvest.com for more details.

Trump’s New Economic Policies Could Have A Detrimental Impact On Black Businesses, Yet Some Opportunities May Exist. The article presents a critical analysis of the potential impact of Donald Trump’s proposed economic policies on Black-owned businesses. While acknowledging limited opportunities, the overall assessment suggests that the negative consequences will outweigh the positives. The analysis underscores that while some isolated opportunities may arise from Trump’s policies, the overall damage to Black businesses could surpass the setbacks experienced during his first term. The compounding effects of higher operational costs, reduced social safety nets, and macroeconomic uncertainty could stifle growth, increase business failures, and deepen racial economic disparities. While there are narrow windows of opportunity, Trump's proposed economic policies pose a significant threat to the stability and growth of Black-owned businesses, necessitating proactive strategies for mitigat...

  Black Businesses Projected To See $1B In Loans  From The Small Business Administration - https://www.blackenterprise.com/analysis-sba-projected-to-supply-black-businesses-1-billion-in-loans-this-year/  

Data: Nearly 80 of Black Entrepreneurs Believe They Run Thriving Businesses, Yet Gaining Access to Capital Still a Hurdle - https://www.blackenterprise.com/data-nearly-80-of-black-entrepreneurs-believe-they-run-thriving-businesses-yet-gaining-access-to-capital-still-a-hurdle/  The article highlights the fact that, despite the resilience of black entrepreneurs in dealing with record inflation, a pandemic and overall economic uncertainty, the issue of access to capital remains a significant hurdle. Almost 50% of black business owners report they have issues accessing finance.  Be that as it may, the provision of information about sources of finance is a step in the right direction. The article notes that Bank of America and Seneca Women compiled a database on sources of capital specifically for black entrepreneurs (Ed note: also see the Minority and Women-owned Company Small Business Financing Guide and Workbook ).  Knowing what lenders are looking for is helpful, regardle...

While multiple reports have shown rising interest in financing Black-owned small businesses, a new study shows an underlying problem still remains. According to the “State of Minority Business, March 2022” report by Creative Investment Research , there has been less understanding of the core issues small Black-owned firms face in gaining funding to start or grow enterprises. The analysis pinpoints why Black-owned firms continue to experience under-performance in accessing capital across the nation’s financial services-industry. William Michael Cunningham, an economist and owner of Creative Investment Research in Washington, D.C., says those factors include elevated discouragement when applying for financing, low-profit margin industries, and a reported undercount by the U.S. Census Bureau of the number of black owned businesses. He says potential discrepancy can lead to less funding from federal, state, and local agencies to support to those ventures. Cunningham swears the lack of fin...

Banks of all sizes are continuing to direct funds to minority-owned businesses months after the social unrest that followed last year’s death of George Floyd. JPMorgan Chase just announced plans to invest $40 million in four Black-run banks. Ally Financial, Banner, Citigroup, Texas Capital Bancshares and First Republic Bank joined JPMorgan in providing capital to help fund Broadway Financial’s pending acquisition of the $435.4 million-asset CFBanc in Washington. Four community banks — First National in Strasburg, Va.; Fauquier Bancorp in Warrenton, Va.; Eagle Financial Services in Berryville, Va.; and Potomac Bancshares in Charles Town, W.Va. — recently created a $1 million fund to provide loans to Black-owned businesses and farms in their markets. The latest efforts show that the banking industry is still evaluating ways to help underserved markets. “There’s no doubt we needed to do an assessment on what more we could do as a firm,” said Brian Lamb, global head of diversity and inclus...

Link to interview: https://drive.google.com/file/d/11yR9RGTdY5ccp5PyEhbjkRqgiKQJm34-/view?usp=sharing

List of ways/tips to support and help black-owned small businesses: https://www.finimpact.com/blacklivesmatter-support-black-owned-small-businesses/

Black People and COVID-19 | Key Impacts A new national survey of African American small businesses was conducted by Washington, D.C.-based Creative Investment Research. The survey asked questions about the Paycheck Protection Program and the Economic Injury Disaster Loan Emergency Advance (EIDL) Programs. The survey was intended to get a true pulse of how effective the lending programs have been. Sixty four percent (64%) of survey participants that said they applied for the Paycheck Protection Program (PPP), only 19% got funding. Even those receiving funding, however, got far less than what they asked for or expected. As survey respondents were predominantly Black businesses, this gives us some insight as to why unemployment is high and growing among Black Americans. What can Black people do immediately? Apply for the stimulus check of $1,200 - 100% probability rate of receiving; Apply for Paycheck Protection Program (PPP) - much lower probability rate of receiving PPP, on...

Black American Business Owners Sound Off in New Survey of PPP  by Jeffrey McKinney, Black Enterprise Magazine April 24, 2020 Financing from the Paycheck Protection Program (PPP) is getting a cool reception from black business owners. A new national survey of 50 small businesses conducted Thursday by Washington, D.C.-based Creative Investment Research on the Paycheck Protection Program and the Economic Injury Disaster Loan Emergency Advance (EIDL) Program was intended to get a true pulse of how effective the lending programs have been. The survey came out the same day the House rati􀁽ed a bill by the Senate to pump roughly $310 billion more in loans to the Paycheck Protection Program, The Wall Street Journal reports. The PPP exhausted its initial $350 billion funding last week after being rolled out on April 3. The program for 􀁽rms with up to 500 workers became law in late March as part of the $2 trillion coronavirus economic stimulus package. It was geared to h...

New federal banking legislation,"H.R.41 - RESCUE Act for Black and Community Banks" was introduced by Congressman Bobby Rush (D-Il) on January 3, 2019. We worked, along with the Financial Services Innovation Coalition (FSIC), to draft this new legislation, which contains many of the ideas we have been working on for some time. Recently, FSIC sponsored a letter of support. To add your name, please see: https://lnkd.in/ejv9Ef6 The bill is designed to take a focused approach to saving and expanding the number of Black-owned banks operating in the US. This legislation is designed to meet the needs of the Black community, not just serve bankers. Our contributions were part of a collaborative effort in the overall national interest. The bill, which has just started the legislative approval process, contains the following provisions: 1. Establishes in the Office of the Comptroller of the Currency the "Office of Black and Community Banks". 2. Seeks to partially or complet...

We are conducting a survey of Black Business Conditions as we prepare for our Texas Talks (see above). Note that you do not have to be either in Texas or a Black-owned Business to fill out this survey. In fact, we prefer to have a range of business owners respond. We are, however, specifically focused on the Black business sector in Texas. To view and complete the survey, please go to: https://www.surveymonkey.com/r/NCVQLLL Thank you!

The State of Black Business will inform members and community leaders on the climate, condition, and trends of African American business.  The Keynote Speaker, Economist William Michael Cunningham, is the founder of Creative Investment Research and serves as Managing Partner for National Crowdfunding Services. The Forum is a critically important forum to discuss and design a plan for greater economic impact within our communities. You will want to join this discussion with black business leaders from around the city! Invitees to this event will include elected officials, corporate sponsors, community leaders, DBCC Board of directors and select Chamber members. August 22, 2017 Cityplace 2711 N. Haskell Dallas, Texas 75204 8:30 a.m. – 6:00 p.m. State of Black Business Registration:  (Early Bird Special) $75 Member/$100 Non-Member http://dallasblackchamber.org/current-events/state-of-black-business-forum/

I saw an article recently on Black banks in the US that was filled with inaccuracies. It was a public relations piece for the banking industry, so I thought I would post something based on my 20 years of research experience in the sector. 1. What is the historical significance of Black banks? They were created at a time when discrimination against Black people   was legal in the US. They served as the only financial service   providers to the community. 2. Do Black banks have the same level of significance to the Black  community today? Why or why not? No. They are too small to serve the community in any meaningful way. For example, they cannot serve as a line of defense against predatory lending . The result: b anks like Wells Fargo are free to target black communities for shoddy loans :  http://www.washingtonpost.com/ business/economy/former-wells- fargo-loan-officer-testifies- in-baltimore-mortgage-lawsuit/ 2012/06/12/gJQA6EGtXV_story. html Some Black banks we...