Giving Compass' Take:

• A video from The Aspen Institute explains the potential for community financial institutions to support entrepreneurs of color during the pandemic.

• How are coronavirus and systems of discrimination disparately harming Black businesses? How can you change your behavior to support entrepreneurs of color who've been historically neglected and underserved? 

• Learn more about the role of philanthropy in developing an equitable landscape for entrepreneurs.

Prior to the global pandemic, the relatively high small business start and ownership rates among entrepreneurs of color were a bright spot in a period of declining US entrepreneurship. But small businesses have endured some of the hardest stresses of the pandemic, as forced closures and physical distancing have decimated earnings for restaurants, salons, childcare centers, and other services we all rely on. Businesses owned by entrepreneurs of color have been particularly impacted by declining revenues, and despite government efforts to get money into people’s hands, many small businesses have not received the support they need. This is partly a problem with the delivery systems used: programs that flow through banks miss those that have historically been underserved. Fortunately, there are lenders who serve these businesses and communities: Community Development Financial Institutions. CDFIs are mission-driven lenders that serve the parts of America that too often get left behind, including people of color, returning veterans, new citizens, and more. What role can CDFIs play in supporting entrepreneurs and advancing equity during this uncertain time? And how can policymakers, investors, philanthropy, and others support the work of CDFIs?

Today, HOPE (Hope Enterprise Corporation, Hope Credit Union and Hope Policy Institute), is a family of organizations that provides financial services; leverages resources; and engages in policy analysis to strengthen communities, build assets, and improve lives in Alabama, Arkansas, Louisiana, Mississippi and Tennessee. Since 1994, HOPE has generated more than $2.5 billion in financing that has benefitted more than one million people in one of the nation’s most impoverished regions.

Watch the full video about how to support entrepreneurs of color at The Aspen Institute.