VP Harris’ Agenda For Black Men – A Continued Focus On Small Business

Last week, Vice President Kamala Harris’ campaign released a list of policy proposals aimed at removing barriers that Black men have historically faced in building wealth, education, employment, earnings, and health. Also included in her Opportunity Agenda for Black Men is a stronger path towards entrepreneurship to help reduce the inequities that Black Americans continue to face.

“Today, the average Black family has about $45,000 of wealth versus $285,000 for a white family,” said Jay Bailey, President and CEO of the Russell Innovation Center for Entrepreneurs. “The most secure way to build wealth in Black communities and that is through creating more new Black-owned businesses that have the support needed for longevity.”

One barrier to creating more Black-owned businesses is access to capital. Research indicates that Black Americans – regardless of their credit scores – are twice as likely to be denied credit by banks. This may be one of the reasons a survey of small business owners found that white entrepreneurs’ main priority in seeking financing was low rate, while the primary one for Black business owners was confidence the application would be approved.

Vice President Harris proposes addressing this through a new partnership with the U.S. Small Business Administration and mission-driven lenders to provide 1 million loans of up to $20,000 that are fully forgivable to Black entrepreneurs and others who have historically faced barriers to starting or growing a business. This builds on her plan to increase the tax deduction for small business start-up expenses from $5,000 to $50,000 to cover more of the costs.

“We are experiencing an unprecedented level of growth in new small businesses, including among Black Americans, but it is clear that more needs to be done. Small business continues to be the driver of the American economy, and Black Americans have been at the forefront of that growth. It’s in our best interest to strengthen our investment in the economic engine of America, and fuel the greatest economy on Earth,” said John Hope Bryant, Chairman and CEO of Operation Hope.

Vice President Harris is also planning to work with the private sector to create more affordable banking options for Black men and others who are currently not able to access the banking system because of high fees. This could allow more people to save, invest, and build credit, which would in turn give them greater opportunities for accessing capital.

“Minority entrepreneurs need what I call the three C’s: Customers, Contracts, and Capital,” said Marc H. Morial, civil rights leader and former Mayor of New Orleans. “This plan can give entrepreneurs the capital to not only build customers, but potentially create more jobs in their communities.”

“The ability to build and sustain a successful business boils down to being able to access money in an affordable way when it comes to lending,” said Shaundell Newsome, the founder of Summu Marketing in Las Vegas, Nevada and Co-Chair of Small Business For America’s Future. “These proposals from Vice President Harris will give more Black men that opportunity in starting a business.”

The proposal also supports businesses that aren’t just found on Main Street, including farmers and ranchers that have been denied access to capital by banks and the federal government for discriminatory reasons. Her plan builds on more than $2 billion that has already been provided to more than 43,000 farmers and ranchers, including thousands of Black farmers and ranchers. This is intended to help them to both weather financial stress and grow their farms.

In addition, more than 50 Black business leaders, including former American Express CEO Kenneth I. Chenault, BET Media Group CEO Scott M. Mills, and Mellody Hobson, Chairwoman of the Board at Starbucks, signed a letter endorsing Vice President Harris. The letter, organized by the Black Economic Alliance and released on Wednesday, states: “Many of us have spent time with Vice President Harris and know that she understands what the private sector needs to grow, invest, and thrive — and how business leaders like us create good-paying jobs that strengthen our communities.”

Vice President Harris’s plan states, “that there is so much untapped ambition and leadership within the Black male community.” While this dilemma cannot be solved overnight or in one fell swoop, this plan lays a foundation for creating a small business ecosystem that everyone can access.