More so than other racial groups, Black-owned businesses have been trounced harder by COVID-19 and are still rebounding from the pandemic.
Yet, some uplifting news is they perhaps will be among those to benefit from a new plan by Vice President Kamala Harris and Treasury Secretary Janet Yellen to provide $8.7 billion in federal funding for financial institutions catering to minority and underserved small business owners.
The announcement was made Tuesday at the annual Freedman’s Bank Forum at the Treasury Department, per Yahoo Finance. The much-needed capital infusion is a piece of $12 billion gained last year by Harris. It came when she was a Senator and worked to get the funding with other senators, including Cory Booker, Chuck Schumer, and Rep. Maxine Waters, chairwoman of the House Financial Services Committee.
The funding comes as the economic disruption caused by COVID has especially hit Black-owned businesses hard. Ownership rates for them fell 41% between February and April 2020. According to a U.S. House Small Business Committee report, that was the greatest decline of any racial group.
“In America today, deep racial disparities continue to hold people back from achieving all they can,” Vice President Harris stated at the forum.