Sens. Cory Booker, Ben Cardin Release Plan To Help Underserved & Underbanked Small Businesses
by Derek Major

May 14, 2020

Sens. Cory Booker, Ben Cardin Release Plan To Help Underserved & Underbanked Small Businesses

Senators Cory Booker (D-NJ) and Ben Cardin (D-MD) have released a proposal to prevent underserved and small businesses from falling further behind during and after the coronavirus economic crisis.

The proposal described minorities, women, and those in rural areas as key drivers of job and productivity growth. However, those small businesses are also the least likely to survive the unprecedented economic hardships the coronavirus pandemic has brought.

“Failing to help these vulnerable small businesses runs the risk of extending this economic crisis while also limiting our economy’s ability to recover after we defeat COVID-19,” the proposal states.

The proposal calls for mandatory daily and weekly reporting on the total number and dollar amounts of loans or grants approved and disbursed through the Paycheck Protection Program (PPP). This includes the Emergency Economic Injury Disaster Loan (EIDL) Grants Program and the EIDL Program as well as the amount of remaining funding in each program.

Additionally, the proposal would create a threshold for Community Development Financial Institutions (CDFIs) and other mission-based, non-profit lenders still seeking approval to lend under PPP. The proposal will also set aside $10 billion for CDFIs with a proven record of reaching underserved borrowers and Minority Depository Institutions, or MDIs, to support loans to underserved small businesses.

Minorities, particularly African and Hispanic Americans are struggling to overcome the economic turmoil brought on by the coronavirus pandemic. African and Hispanic business owners have an added burden when considering their businesses’ financial future along with their personal finances.

Booker and Cardin have also made it a priority to help businesses owners who’ve had past legal issues. The proposal will allow businesses owned by individuals with felony convictions or who are on parole or probation access to PPP funds. Employers will also be given flexibility in choosing when to deploy PPP funds and to hire back their employees.

African American and minority businesses owners have expressed their frustrations in applying for PPP loans.

According to a national survey of 50 small businesses on PPP loans conducted by Creative Investment Research, out of the 60% of respondents who applied for the program, 33% got some level of funding. For the EIDL Program, of the 72% of the survey respondents who applied, 28% got some level of funding.

The senators’ proposal has been endorsed by National Urban League, National Action Network (NAN), Main Street Alliance, Small Business Majority, and the Black Economic Alliance.

by Lydia Blanco

May 14, 2020

HBCU Presidents and Leaders Discuss the Future of Colleges and Universities Post COVID-19

Earlier this week, The Higher Education Leadership Foundation hosted a timely conversation about the current state of historically black colleges and universities and their futures post COVID-19 on its podcast Forethought of our Founders. HBCU presidents from Bennett College, Southern University, Virginia Union University, and Wiley College weighed in on the importance of HBCUs and the students who attend not being left out of conversations as higher education institutions reimagine their business models after the pandemic.

Dr. Hakim Lucas of Virginia Union University and Bennett College President Dr. Suzanne Elise Walsh were guest panelists for the topic, ‘A New Normal: Now is the time to reimagine the current higher education business model.’ The live discussion was moderated by Wiley College President Dr. Herman Felton and Higher Education Leadership Foundation (HELF) Founder Dr. Melva Williams, vice-chancellor of Southern University New Orleans and Southern University Shreveport.

During the conversation, Dr. Walsh touched on Bennett’s fight for accreditation during the pandemic and how the health crisis has uniquely positioned the school.

“I came in in August of 2019 and came in after a, an incredible fundraising campaign by my predecessor Dr. Dawkins where the college raised $9.6 million in 60 days. Our financial challenges are the only challenge that we have with our accreditation. And I say all this just to give context. So, we’re still accredited by SACS—and at the same time, we are pursuing this alternative accreditation while we work through the courts. And what I think is important about that is because of that financial status—because of that accreditation status—we had already been planning for a decline in enrollment for the Fall, just because we were in this precarious position,” said Walsh.

“We had already rethink our financial model because we had to. And so, when Corona hit it really just said, ‘OK, everything we had already been focusing on now has to be amplified.’ But in some ways, we may have been a little bit better positioned weirdly because these things were already top of mind,” she added.

Report: HBCU Enrollments Decline With Second Lowest Numbers In 17 Years

Moving Business Forward

One of the interesting areas of discussion was on the business models of HBCUs. There is an idea that some schools operate off of a church model and others on a business model. In response to that, Dr. Lucas shared that HBCU business models are nuanced.

“Well you know how it is with anything that is faith-based or faith-centric in the African American community to run the business like a church on one side, denotes this notion of family and interaction and work and warmth and the necessity of presence and closeness. But on the other side, it often conflicts with the business parts of an organization that usually go with the theme of employment. How performance is preferred over relationships; how people get jobs how they’re placed; and how relationships sometimes supersede productivity. And so oftentimes in our spaces when we talk about the HBCU world, because the church is often, particularly for private HBCUs, is so ingrained into the culture. And not only does the chapel take the central part of our landscape and architecture, but sometimes it also overflows into our business decisions,” said Dr. Lucas.

Dr. Williams then posed the question, How are you addressing the juxtaposition between faith, mission business, and the coronavirus?

Dr. Lucas responded saying, “The point is simple, that we all are using faith as a lens to grow ourselves towards a deeper level of servitude. And it is that growth of a service-minded individual a servant leader that then allows us to take our personal values, our personal ideals, our personal missions and standards, and to infuse them into the institutions that we serve, through our missions our visions, our core values and ultimately our strategic approach to the work.”

He also shared that ‘pastor corona’ as he likes to call the virus came with a prophetic message. “The message that she’s bringing to us is that you better learn how to do your business in the midst of unexpected trials and tribulations.”

Collaboration Is Key for HBCU Presidents

Dr. Walsh added, “You can’t survive COVID-19 with a great story. You have to do the real work.”

Popularity or the appearance of doing well will not help colleges and universities thrive after the pandemic. Working together will, the HBCU presidents agreed.

“Those who are most successful, who are actually successful are institutions that don’t go it alone. If you think that you can be successful just as an individual institution in your individual context, you’re not going to make it,” said Dr. Walsh.

Forming partnerships and collaboration is key.

“For whatever reason, COVID-19 is more real than all of the other moments that have been threatening to close institutions. It’s because of the volume and everybody experiencing that same anxiety and the same issues all at once—[versus] an institution struggling last year and one five years ago. That’s different. But when everybody’s in it together I think it reveals a number of opportunities,” Walsh added.

HBCUs have a strong future. To read more about the impact COVID-19 is having on the black community, click here.

 

by Dana Givens

May 14, 2020

This Historic Black Bookstore is Fighting To Survive the COVID-19 Pandemic

COVID-19, or the novel coronavirus, has forced small business owners nationwide to close their doors as they struggle to hold on to their staff. For one black-owned bookstore, it’s more than just fighting to keep the doors open, but to preserve a piece of African American history.

Marcus Books, based in Oakland, California, is the nation’s oldest black-owned bookstore. It is renowned for its wide collection of African and African American history, culture, music, and literature. Many notable African American figures have patronized the store or hosted readings, including Malcolm X, Toni Morrison, Maya Angelou, Oprah Winfrey, Terry McMillan, Walter Mosley, and Muhammad Ali.

After closing briefly in 2014 due to financial disputes with the building’s owner, the bookstore re-opened in 2016 at a new space in the African American Art & Culture Complex (AAACC).“The pandemic exacerbated the plight of the few remaining black bookstores across the country,” Richardson told USA Today. The independent bookseller currently has a GoFundMe page to help raise money through these uncertain times.

The usually lively store has been silenced by the coronavirus. Staffers take phone orders from the safety of their homes; customers pick up their purchases on-the-go. Owner Blanche Richardson, whose parents founded Marcus Books 60 years ago, now works alone in the store. She dons a protective mask to prepare curbside deliveries for loyal customers.

Bookstores have long faced hurdles to survive, thanks to the rise of Amazon Books and other digital retailers. Many independent booksellers must think of new strategies to compete against their Internet competitors. The COVID-19 pandemic has now accelerated the competition, forcing bookstores like Marcus to operate under quarantine restrictions that has hit their businesses hard.

by Cedric 'BIG CED' Thornton

May 14, 2020

Mamba Sports Academy Retires ‘Mamba’ Out of Respect to Kobe Bryant

Due to the death of Kobe Bryant earlier this year, the Mamba Sports Academy has retired “Mamba” out of respect to the Hall of Fame basketball player.

Sports Academy, which was founded in 2016 by Chad Faulkner, had a simple but crucial mission of elevating human performance. In 2018, the program partnered with Kobe Inc. to become Mamba Sports Academy. 

In a press release, the academy stated:

“Like tens of millions of fans around the globe, Sports Academy’s world drastically changed on January 26, 2020. Today, with respect for an unparalleled legacy, the Academy will retire the “Mamba” in the Mamba Sports Academy name—to raise it to the rafters, where it belongs. In doing so, Sports Academy will carry on the vision it curated during that special partnership.

“The changing of the name from Mamba Sports Academy to Sports Academy, the original name from 2016, is not a decision we came to lightly or on our own. It was a mutual agreement made in accordance with the wishes of his estate. Thank you for respecting that decision in these turbulent times.

“Sports Academy’s mission remains unchanged. Sports Academy is still here to transform the way each of us approach human performance. Sports Academy is still here to support current professionals and guide the next generation of athletes. Sports Academy is still here to provide an integrated and full-circle approach to training.”

Located in Thousand Oaks, CA, the 100,000-square-foot multi-sports training center features five basketball courts and a technologically advanced recovery department.

It was recently reported that the NBA’s G League is considering the possibility of utilizing the academy to house its newly formed “Select Team.” The league is considering the facility as its home base for the 2020-21 season. 

Why COVID-19 Surcharges Are Being Added To Your Take-out Bill
by Derek Major

May 14, 2020

Why COVID-19 Surcharges Are Being Added To Your Take-out Bill

Many restaurants are simply trying to stay afloat during the COVID-19 pandemic, but food delivery apps are taking a big cut of every delivery, and food costs are rising. Now, many customers are noticing a new charge on their receipts.

According to Today, many restaurants have begun adding a COVID-19 surcharge to their orders and customers are surprised by the new charge. The issue was brought to the nation’s attention when a woman posted a photo of her receipt from the Kiko Japanese Steakhouse & Sushi Lounge in West Plains, Missouri.

“‘Scuse me … what? A covid surcharge…?” Twitter user @talialikeitis wrote Monday.

The internet was quick to react negatively as customers have also had to sacrifice money during the COVID-19 pandemic. More than 26 million people in the U.S. are currently unemployed with the number rising every day.

However, some customers were happy to pay an extra fee to help out their favorite local eatery.

Kiko Japanese Steakhouse’s owner and managing partner Billy Yuzar told Today the surcharge was implemented in early May due to a noticeable price increase on meat, seafood, and vegetables from their local supplier.

“We were hoping to adjust the charge weekly based on the prices we get from our suppliers instead of raising all of our prices across the board on our menu,” Yuzar told NBC. “We also planned on taking this surcharge off completely once all the prices return to normal.”

According to CNBC, prices for groceries jumped 2.6% in the month of April. The percentage is the largest increase since 1974. Meat, poultry, fish, and eggs rose 4.3%; fruits and vegetables climbed 1.5%; cereals and bakery products advanced 2.9%; dairy goods gained 1.5%.

The state of Missouri has allowed local restaurants to reopen their dining rooms at 25% capacity but many, including Kiko Japanese Steakhouse, have decided to stay closed to the public and continue to serve takeout only.

Yuzar said his restaurant posted multiple signs about the surcharge and most customers were understanding. However, once the post of the receipt went viral, the restaurant was slammed with complaints.

In response, the restaurant has eliminated the surcharge and raised the price of menu items.

“We can take the harassment on our social media, but when they start being ugly to our employees here, it really bothers us,” Yuzar told NBC. “This is why we decided to just eat the cost of printing new menus and adjust it weekly. We will go back to our normal prices once food prices go back to normal.”

The COVID-19 pandemic has hit the restaurant industry so hard that some large chain restaurants applied for and received funds earmarked for small businesses. Many of them gave the funds back after pressure from the public.

‘Love & Hip Hop: Atlanta’ Cast Member Charged With Fraud After Obtaining $2 Million PPP Loan
by Cedric 'BIG CED' Thornton

May 14, 2020

‘Love & Hip Hop: Atlanta’ Cast Member Charged With Fraud After Obtaining $2 Million PPP Loan

Maybe the salary to be on reality TV wasn’t enough! VH1’s Love & Hip Hop: Atlanta cast member Maurice Fayne, also known as Arkansas Mo, was charged with federal bank fraud, according to The U.S. Department of Justice.

The Love & Hip Hop: Atlanta personality has been arrested on federal bank fraud charges arising from a Paycheck Protection Program (PPP) loan that he obtained in the name of Flame Trucking. Fayne, 37, of Dacula, Georgia, has been formally charged with bank fraud and made his initial appearance on Wednesday before U.S. Magistrate Judge Justin S. Anand.

Fayne is the sole owner of a Georgia corporation called Flame Trucking. On April 15, 2020, Fayne submitted a PPP loan application in the name of Flame Trucking to United Community Bank (UCB). He stated that the business had 107 employees and an average monthly payroll of $1,490,200. He was seeking a loan in the amount of $3,725,500, and he certified that the loan would be used to “retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments, as specified under the Paycheck Protection Program Rule.”

UCB funded the loan for $2,045,800. Shortly after Fayne received the money, he allegedly used more than $1.5 million of the PPP loan proceeds to purchase $85,000 in jewelry, including a Rolex Presidential watch, a diamond bracelet, a 5.73-carat diamond ring for himself, and to pay $40,000 in child support. These purchases and payments are unauthorized use of PPP funds under the CARES Act.

“The defendant allegedly stole money meant to assist hard-hit employees and businesses during these difficult times, and instead greedily used the money to bankroll his lavish purchases of jewelry and other personal items,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division in a written statement. “The department will remain steadfast in our efforts to root out and prosecute frauds against the Paycheck Protection Program.”

“The defendant allegedly took advantage of the emergency lending provisions of the Paycheck Protection Program that were intended to assist employees and small businesses battered by the Coronavirus,” said U.S. Attorney Byung J. “BJay” Pak of the Northern District of Georgia. “We will investigate and charge anyone who inappropriately diverts these critical funds for their own personal gain.”

The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the Paycheck Protection Program. In April 2020, Congress authorized over $300 billion in additional PPP funding.

by Cedric 'BIG CED' Thornton

May 14, 2020

Raven-Symoné: “I Haven’t Touched My Cosby Money”

Actress Raven-Symone has financial savvy her Hollywood peers should follow. The veteran actress hasn’t “touched” the money she made from The Cosby Show, which aired its final season in 1992, according to The Grio.

The former Cosby Show child star made the admission during an Instagram Live with Jerome Trammel. “#RavenSymone joined The Cosby Show in 1989 at 3 years old. Today, she STILL generates money in residuals/royalties from the show.‬ However, did you know that due to her other roles in TV, movies, music & etc. she has NOT spent ANY of her Cosby show money & still has it saved? We stan a boss!💰‬”

Raven-Symoné appeared in 66 episodes of The Cosby Show between 1990 and 1992. She went on to star in Hangin’ With Mr. Cooper and then became a Disney franchise star on That’s So Raven. She is now starring in Raven’s Home, a reboot of her Disney show focusing on her character now as an adult. The actress also has a recurring role on ABC’s Black-ish, where she plays the role of Dre’s sister, Rhonda Johnson.

In an interview with Hot New Hip Hop, she explained her longevity in the industry. “I started out in it when I was 16-months-old before I had a choice. So, if you strip me of the industry…that’s a deep strip.”

“It’s not like I started when I was 15. I didn’t start when I was 12. I got out of the womb, said hi, and then they put me on television.

“Know that everything that comes from my mouth is because I was raised in the industry that you supported me in. This is what I saw. These are the people I came in contact with. These are the lessons that I’ve learned. This is the business that I’ve known. Good, bad, weird, fumbles of words. That’s just who I am and I can’t apologize for it because I started when I was 16-months old.”

Candace Owens’ Twitter Rant About Ahmaud Arbery Riles Fellow Black Conservatives
by Cedric 'BIG CED' Thornton

May 14, 2020

Candace Owens’ Twitter Rant About Ahmaud Arbery Riles Fellow Black Conservatives

Candace Owens has made some controversial statements and theories. This time they’ve landed her on the wrong end of criticism from her fellow black conservatives after her latest rant on the murder of Ahmaud Arbery.

Owens took to Twitter earlier this week to try to discredit the theory that Arbery was killed, in part, because he was black.

Continuing her rant, she then attacks LeBron James, who has been vocal about the injustice of the killing.

She also made an argument about “black America” not being as vocal when one black person kills another.

After her Twitter rant, some of her fellow black conservatives were quick to point out their objections.

Vegan Product Sales Soar Amid The COVID-19 Pandemic
by Dana Givens

May 14, 2020

Vegan Product Sales Soar Amid The COVID-19 Pandemic

The COVID-19, or novel coronavirus, pandemic has hit the food and restaurant industry hard with many restauranteurs struggling to keep their businesses afloat under the new stay-at-home restrictions. While the restaurant side of the industry may be on the verge of collapse, it is the polar opposite for supermarkets and other food items sold in local grocery stores. One sector that is particularly thriving under the virus outbreak is vegan food products.

An estimated one billion people worldwide do not eat meat and have removed animal products from their diets. In countries like Germany, the sales of vegetarian and vegan products have increased by 65.3% since 2017. Numerous celebrities such as Nick Cannon have invested in opening vegan restaurants while influencers like Tabitha Brown have found new fame teaching others how to make vegan dishes.

According to a Veganz poll, 95% of participants cited animal welfare as a factor in why they went without animal products while 83.9% also listed environmental reasons as a factor in opting for vegan products.

Since the start of the pandemic, vegan brands have seen a significant increase in sales and product gains. Beyond Meat have increased their sales by 82% since the beginning of the year. Bio Gaia gained 8%. This was during the same period the Dow Jones fell by 15% while the DAX lost 18% of its value.

According to forecasts and new data collected, the sales of vegan meat products worldwide will reach roughly $120 billion within five years. By 2040 that number could rise to $450 billion.

“Manufacturers of vegan products are also increasingly popular on the trading floor,” says cryptoscene analyst Raphael Lulay in a press statement. “Not least due to the food’s reception among consumers. In particular, progress in the field of in-vitro meat production could give an already strong growth trend a further boost.”

Will Health Tracking Technologies Help Workers Stay Safe on The Job?
by Lydia Blanco

May 14, 2020

Will Health Tracking Technologies Help Workers Stay Safe on The Job?

Millions of Americans are anxious to get out of the house and get back to work. Yet, no one truly knows what the workforce and the daily routines of going back to work will look like post-COVID-19. As leaders plan and prepare for the unknown, some are opting-in for digital health screening options. But the question remains, will it work as it relates to keeping people safe while on the job? Experts are saying that it might not.

In a recent New York Times piece, experts weighed in on a number of symptom-checking apps and fever-screening cameras that are said to predict sick workers and help flatten the curve. In short, they believe that a number of the devices could violate privacy and produce inaccurate reports.

For the story, The Times followed Subway franchise owner Bob Grewal who has begun screening his employees in Los Angeles. Grewal is using PopID, a facial recognition and fever detection camera service to take temperatures before staffers clock in and records historical health data. Grewal asked employees to check their temperatures four times a day.

“People are going to adjust,” Grewal told the Times. “They’re going to have to understand all the safety precautions that chains have taken.”

As leaders look for solutions to keep their businesses moving forward, experts say that added surveillance might not be as helpful as some might think.

Michael T. Osterholm, the director of the Center for Infectious Disease Research and Policy at the University of Minnesota told The New York Times, “I think employers need to look carefully before they jump into any of this. Some companies are embarking upon things that are not going to help and may actually set us back.”

To date, Salesforce and PwC are using similar technologies to help track employees through contact tracing. A number of employers are said to follow suit using similar mapping and surveying efforts to monitor employees based on White House guidelines to re-open America.

Experts believe that mandated health screenings could create a new class system for employment and a number of other issues.

Hank Greely, a professor at Stanford Law School who studies the social implications of new health technologies told the Times, “Do we really want a world where some people can go to work and others can’t based on their immunity status? The people who can’t will say, ‘This is unfair,’ and they’ll be right.”

Related: The Coronavirus Will Hit Low Wage, Black Workers The Hardest

Others have expressed concern about inaccuracies from infrared technologies that can’t detect sickness in people who are asymptomatic.

Health screenings can change the workforce indefinitely. For that reason, some employers are taking their own health and safety measures so that screening technology doesn’t interfere with how they do business.

For more insight, continue to read the full story on The New York Times.

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