Because Advancing Black Entrepreneurs by Chase for Business enables Black business owners to address immediate financial needs and build resiliency.
It’s no overstatement that Black-owned U.S. businesses are in a state of crisis due to the economic fallout from the coronavirus pandemic. From February to April of this year alone, 440,000 Black-owned businesses closed their doors permanently, with thousands of jobs and millions of dollars in worker income lost.
At the core of such closures is an unfortunate reality: Most Black-owned businesses within majority Black communities are undercapitalized and unable to withstand the type of economic shock we’re experiencing right now. Cash liquidity is a key predictor of a small business’ ability to survive and grow, and our research shows that far too many Black-owned businesses continue to lack the resources they need.
According to the JPMorgan Chase Institute, most small businesses in majority Black communities entered this crisis with fewer than three weeks of a cash buffer and less cash liquidity than businesses in white communities. The Institute also found that Black-owned businesses could require more recovery assistance than others due to severe revenue shocks in recent months.
The businesses that will be best positioned to succeed post-crisis are those that have managed their cash flows effectively and pivoted business models where necessary — all while strengthening ties to their local communities and keeping employees and customers safe.
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Author: Anthony Peak
My name is Anthony T. Peak and I am a CPA and Business Owner. In addition to owning UALE.com, Peak CPA Services, LLC, and Peak Travel Services, I work as a Senior Compliance Manager for Verizon Wireless. I earned a B.S. in Accounting from Morris Brown College. While at Morris...
