In an effort to help more nonwhite businesses get federal funding through the Small Business Administration’s (SBA) Paycheck Protection Program (PPP), the National Minority Supplier Development Council, Inc. (NMSDC) Business Consortium Fund (BCF) and Midwest BankCentre teamed up to help certified Minority Business Enterprises access the federal emergency funds.
The SBA specifically set aside $10 billion of the second round of PPP funding to be lent exclusively by Community Development Financial Institutions (CDFIs) to businesses in low-income communities.
However, when the NMSDC surveyed its MBEs, the organization realized that more than 60% of the businesses surveyed had not yet gotten their funding. NMSDC jumped into action.
“We have been thoroughly investigating a range of options for helping MBEs secure the much-needed PPP funding,” Adrienne Trimble, NMSDC President and CEO, said in a statement. “After receiving the survey results, I knew it was time for NMSDC to take care of our own and so I began making calls.”
So that’s when Trimble connected with Midwest BankCentre. Together, the institutions’ staff will help minority-owned businesses apply for the PPP loan, which can be a complicated and lengthy process.
“The NMSDC Business Consortium Fund is perfectly positioned to support MBEs in successfully accessing PPP funding. Our staff is trained and ready to work with MBEs on their specific needs when it comes to accessing this critical funding,” G. Winston Smith, BCF President and COO, said in a statement. “We have created an efficient application process, and we are eager to work with Midwest BankCentre to break down barriers and facilitate MBE access to the PPP funds.”
The survey results from NMSDC are not the only proof that businesses owned by nonwhite people are not getting equal access to federal funds to keep their businesses going during the COVID-19 pandemic.
Only 12% of Black and Latino business owners who applied for PPP loans reported receiving what they asked for, according to a survey by Global Strategy Group that interviewed 500 business owners and 1,200 workers from April 30 to May 11. Nearly 50% of those same business owners say they might have to close permanently in the near future.
This is the access gap that NMSDC and Midwest BankCentre are teaming up to fix.
“MBC has a strong commitment to reinvesting in our communities and ensuring we all have the tools to have the best shot at winning,” Orvin T. Kimbrough, Chairman and CEO of Midwest BankCentre, said in a statement. “This collaboration is even more important given the current economic challenges impacting small business, and to a greater degree, minority-owned businesses.”
Source: Diversity Inc