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Home Entrepreneurship Black Businesses Were Locked Out Of Stimulus Funds: Where'd It All Go?

Black Businesses Were Locked Out Of Stimulus Funds: Where’d It All Go?

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The government’s Paycheck Protection Program was supposed to be the savior of small businesses. However, the initial $350 billion allotment quickly ran out but it certainly didn’t go to Black owned businesses. In fact, more than 200 public companies applied for at least $860 million from the program before small business owners had a chance to blink. For Black owned companies, the issues were plentiful: many couldn’t apply, many didn’t qualify and many more simply couldn’t navigate the endless red tape. All of this speaks to the urgency of We Buy Black and SheaMoisture’s commitment to provide relief to our companies.

This is a classic case of the rich getting richer. Billions were handed out to big corporations and restaurant chains, as Black entrepreneurs continue going under. “Struggling small businesses in the nation’s hardest-hit regions have not received a dime from the Paycheck Protection Program, intended for businesses with fewer than 500 employees, while hundreds of millions of dollars have gone to corporations that employ thousands, like Ruth’s Hospitality Group and Potbelly Corporation,” National Urban League President and CEO Marc H. Morial said. The country in general is outraged about the snuff to small businesses but the impacts just aren’t the same, for the Black community.

Black entrepreneurs are operating without lines of credit, typically funding their businesses out of their own pockets. This is clear, based on the response We Buy Black received during the application period for the Black Business Relief Fund: 3,588 Black businesses applied, each of them with a compelling story. Many stories were inspiring and others were devastating. All of them had one thing in common: Black business owners are desperately in need of relief and the government has failed them, miserably. In this moment, when the future of Black business in America is unclear, urgency is needed. Black businesses is in danger. We may lose an entire generation of Black entrepreneurs, if something urgent isn’t done now.

Tomorrow We Buy Black and SheaMoisture will announce the 20 awardees of the Black Business Relief Fund. $100,000 of grants will go out and that represents a mere speck, compared to the billions that the federal government fumbled, enriching the rich. Even so, that $100,000 represents a bright hope for Black entrepreneurs and a shift in paradigm: no longer will we look to the outside for relief, we’ll handle it ourselves.

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D'Juan Hopewell
I care about Black Power. Period. Currently working on creating jobs and funding new startups on the South Side of Chicago and writing here and there at HopewellThought.com. Follow me @HopewellThought.
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17 COMMENTS

  1. MANY businesses were shut out as giant corps jumped in to grab funds! Some have been shamed into returning $, and not all are. Another bill was pushed through, also inadequate. I have no doubt that, as you have said, black businesses, and perhaps brown, are suffering most. INFURIATING!

  2. I think this is a shame that most black businesses didn’t get any money but that’s how it goes all the time but now we need to support our black businesses an hour black entrepreneurs this is the way that we can survive we have always struggled so this is nothing new but we need to come together so we don’t have to struggle as hard and help lift each other up there’s power in togetherness

    • All these millionaires and even billionaires, black owned businesses shouldn’t have to wait on a government handout. I believe this was by design especially for Black businesses to receive the least of the relief $$. The white man is very calculating, if this experience isn’t a wake up call for Black people to have “Institutions” of our own I don’t know what is. We are at the mercy of our oppressor because we don’t own shit. If we owned our own banks in every city, right now we could make our own moves and at least negotiate with our oppressor if we came up short to fund our people through this, like stimulus $$, but when you have nothing on the table then you hope for the best, we have to do better, When are we going to get tired of depending on the white man to supply everything for us🤔 if we put our resources together we can make things happen, but we to selfish and brainwashed, I always say, while we playing checkers they playing chess

  3. REGAL HOME CARE, LLC.
    regalhomecarekc.com
    The Home Healthcare Industry has been hit hard. I’m still on the wait list.
    If anyone wants to help, all donations are appreciated. Thank you!
    $JS7isRegal

  4. It”s amazing me that this site is base in black own business that need help but when I reach out to your company and was turn away so what make this process any different ?

    • Loyie L Adkins
      I’m glad you addressed your concerns. I hope and pray they will listen and find away to provide more help. Maybe the problem is there are not enough funds to go around to everyone. So maybe you and I should tell at least 10 people about this. That we know believe in black power, likes donating, etc. This way if we never get the funds other brothers and sisters worse than us will benefit. Let’s always try to influence and help the good in whatever positivity our black brothers and sisters try at. REMEMBER DIVIDED WE STAND DIVIDED WE WILL KEEP ON FALLING. You’re blessing and breakthrough is here just continue pushing and continue seek you will pursue. Love you Louie

  5. I am in the Washington D.C. metropolitan area. I put in my application the day the program came on line, 2 hours of filling out forms and uploading documents. The very next day they scrapped the website and was advised to download the forms and go to a participating bank. Bank of America, Wells Fargo and Capital One, all on the SBA “approved list”, were only processing applications for their current customers. I finally called my bank, a small Black owned bank and they took the application. Funds had run out by then. While I have since been advised that I don’t qualify, I did receive a $1,000 PPP advance, which I do not have to repay. I will still be forced to vacate my work space if business doesn’t pick up by July.

  6. Layers of Beauty Inc., is a 501(c)3 nonprofit organization, that celebrates the lives of individuals with chronic and terminal illness. http://www.layersofbeautyinc.com
    We’re still on the list. No support from our government nor SBA. I’m told the funds have been depleted. In addition, I don’t qualify for Unemployment either. There’s a disconnect somewhere and I’m struggling.

  7. Lee Lee’s Catering ,LLC. was told buy there bank that they where not taking anymore applications and that it was no more money in the PPP this is just today the second round of funding has been released but this is how much our bank APPRECIATE us as clients.. They will not stop the glory what GOD has for our business..

  8. Thank you for your post I hope more of our people recognize that we need to stop looking for outsiders to come to rescue. We have to save ourselves and that first step is supporting black owned businesses, stay away from those Chinese nail salons support a black owned one or do it yourself. Pool our money together to buy up some of these vacant properties in our neighborhoods and stop letting others come in then push us out. At this time we need to stop blaming others for our current situation and take a real hard look at ourselves.

    Unity is going to be our only way out. ✊🏾

  9. I was shut out the first round but applied through a local bank and was awarded funds through the second round. On SBA website, there is a list of banks in your area. Apply at one of the smaller less known banks. They are happy to do business with you. When funds are available, you must apply immediately!

  10. I try to feed many families within our community with quity meats and free front door delivery. Leaving no family left behind hungry is our goal. Less exposure to the meat markets and a direct sale shipped to each home. Professional Meats of New England, Inc, hires 80% blacks and Latinos for employment and we Been over looked from our Local City covid19 relief funds, and was too proactive with our applications we had to resubmit it and at the time there were no longer taking applicants. I feel completely over looked and completely sabotaged by this covid19 meanwhile we still fight hard with our own budget to sustain business and help feed our local regional families.

  11. We filled in the PPP application on the first round, and on the second round our bank, or another bank I have accounts in, didn’t accept the application, nor any of the other banks in San Antonio, or they closed early. So not only didn’t our company get shifted, but many other small companies in our mall was turned down. All the larger companies were still closed, while the smaller companies were made to open and didn’t get finance help unless it was a loan to pay back,

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