In 2020, between February and April alone, the U.S. lost 440,000 Black-owned businesses. What made these firms so vulnerable?
The unfortunate reality is that far too many Black-owned businesses entered this crisis under-capitalized and under-resourced to begin with.
In fact, roughly six months before the COVID-19 crisis began, we found that in the majority of Black communities, most small businesses had fewer than 21 cash buffer days.
This has been a major problem for Black-owned businesses in this country for decades and the pandemic has shown just how vulnerable the businesses in our community really are.
Ernest states, “We’ve lost hundreds of thousands of Black-owned businesses since the beginning of this crisis, and there is still no end in sight to the pandemic. We’re focused on helping as many Black-owned businesses as we can survive this pandemic through our Advancing Black Entrepreneurs initiative.”