New Boost for Minority Businesses in Under Served Communities

The entrance to the corporate office of Hope Enterprise Corporation (AP Photo/Rogelio V. Solis)

NEW ORLEANS (AP) — Small minority-owned businesses have often struggled to gain access to capital and other tools to grow, a challenge made more daunting by the economic upheaval of the coronavirus pandemic. But a new effort announced Tuesday aims to address those disparities in pockets of the nation long gripped by poverty.

Hope Enterprise Corporation, which runs a Jackson, Mississippi-based credit union that specializes in lending and other financial services to underserved communities, is partnering with seven cities and nine historically Black colleges and universities to launch the “Deep South Economic Mobility Collaborative.” Goldman Sachs 10,000 Small Businesses initiative is providing up to $130 million to the endeavor, which will be available to clients in Alabama, Louisiana, Mississippi, Arkansas, and Tennessee.

It’s estimated that well over 100,000 small U.S. businesses have failed since the COVID-19 pandemic began, with underserved communities struck especially hard. Many struggling companies were unable to get loans, including newly formed businesses and those whose financial records didn’t meet bank requirements.

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