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NBC on the Issues That Stymie Black Businesses and How to Overturn Them

An article on NBCNews.com looks at how systemic racism, not to mention inflation and supply chain issues, continue to throw roadblocks in the way of Black entrepreneurs, and how LISC and other supporters are helping small businesses triumph over them. LISC’s Steve Hall, and two entrepreneurs who are benefiting from LISC support, weigh in.

The excerpt below was originally published:
For Black-owned businesses, concerns extend beyond inflation, supply chain issues
By Curtis Bunn & Claretta Bellamy, NBC News

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Alternative options for Black businesses 

To address the stunted growth and financial concerns of Black businesses, Steve Hall, LISC’s vice president of Small Business and Economic Development Lending and its national director of Entrepreneurs of Color Fund, said the company has also invested $250 million into its Black Economic Development Fund to alleviate some of the economic challenges in Black communities and help close the racial wealth gap.

This helped small business owners like Londy, who faced major financial challenges both during and post-pandemic. Aside from struggling to make payroll during the government shutdown, and having her store looted during the 2020 protests, Londy was denied a business loan from her bank of 10 years. Londy said her bank’s rejection “didn’t make sense,” and as a result was grateful for the alternative funding options like the ones LISC provided.

The salon owner eventually received two $10,000 grants, one from Verizon’s Small Business Digital Ready program through LISC and another from PayPal through the Association for Enterprise Opportunity, a program that provides capital and services to help underprivileged communities. Through LISC’s digital accelerator program, she also was able to hire three college interns from the Hult International School of Business, who worked on a digital marketing campaign for Intriguing Hair and helped increase customer traffic to the salon.

LISC also works with many major banks and insurance companies, and public and private foundations that invest in communities of color. Hall, who leads LISC’s small business and commercial lending, said the organization works with partners and foundations to decrease down payment risks for borrowers. The normal down payment risk for commercial real estate averages around 10-20% for borrowers, Hall said, but his organization lowers it to between 3 to 5% for borrowers.

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