It Was Kumbaya Election Night 2008, Now Data Shows Blacks Not Getting Stimulus Loans

SBA Data Reflects Hispanic Small Businesses Also Shut Out In 2009!

By Aaron Glantz of New America Media

Loans handed out to struggling small businesses as part of President Barack Obama's stimulus package have largely shut out minority businesses -- especially those owned by Blacks and Latinos -- according to data provided by the federal government's Small Business Administration (SBA) to New America Media.

On June 15, the SBA, using money from the $787 billion American Recovery and Reinvestment Act, launched the ARC program, America's Recovery Capital, giving banks and credit unions 100 percent guarantees so they're taking no risk when they make loans of up to $35,000 to previously successful, currently struggling small businesses to help them ride out the recession.

Under the program, the borrower pays no interest and makes no payments for 12 months, then has five years to repay the loan. SBA charges no fees and pays interest to the lender at prime - the rate of interest at which banks lend to favored customers - plus 2 percent.

The Obama Administration does not report the racial breakdown of who's benefiting from these loans at Recovery.gov, but data obtained by NAM from the SBA found that of the 4,497 ARC loans where the race of the borrower was reported, 4,104 (over 91 percent) went to white-owned firms, 140, (3 percent) went to Hispanic-owned businesses, and 151 (3 percent) went to Asian- or Pacific Islander-owned businesses. Only 65, (1.5 percent) went to black-owned firms.

Overall, white-owned businesses received over $130 million in loans through the program, while Hispanic-owned businesses got $4 million and black-owned businesses less than $2 million.

In five states - Alabama, Arkansas, New Hampshire, South Dakota, and Wyoming -- every single firm that received an ARC loan was white-owned. In eight other states, including Louisiana and Nevada, all but one loan went to a white-owned firm.

Story continues ...

MIND ON MY MONEY # 239 SMALL BUSINESS OWNERS MAKE NEW MONEY IN ONLY THREE MONTHS!

MEMO TO THE SMALL BUSINESS OWNER: It's December and in 2008 you need to hit the ground running. You need a strategic plan for more customers more visibility, and ultimately more money for your small business. If you wake up January 3 2008 and wonder, "Well It's 2008, what am I going to do???

You are already three months behind! So you should not expect more money in the first three months of 2008. It's just that simple. Let's first do the math. Conservatively, It will take you a month to put a solid plan together. Yes it will. Right now you are in the middle of celebrating the holidays, operating your business and just living the ups and downs of life. Advertising is just a part of it.

We are talking about a strategy to implement for the whole year that should be reevaluate after six months. So, after a month of getting the plan together, you will need another month of gathering the things you need to execute the plan ie... Do you need a bigger space? Do you need to change a menu or get additional products to sell? Hire motivated staff? Advertising? Close one of your offices and consolidate resources? I am talking about a PLAN!! and hopefully somewhere in the middle or end of the third month you will have this plan up and running. That's Three months! To start you off here are:

The Top 9 Things Customers DON'T CARE ABOUT:

9. How good you are at what you do.They only care about how good you are at who you are and how you can help them get what they want

8. Your education, your certifications or your designations. They only care about how what you know can help make their lives more enjoyable, simple and prosperous.

7. Your Brand. They only care that the experience of doing business with you is sensational.

6. You saying you have great service. They only care about getting great service.

5. How much you charge.They care about getting value for their money.

4. How you feel today. They care about feeling good themselves and having a positive day.

3. Why you can’t do something. They only care about fast, easy solutions.

2. How long you’ve been in business. They only care about how you can solve their problems under today’s conditions.

1. How cool or slick your marketing looks. They care about how your product or service can save them time, relieve them of pain, help their family or put money in their bank account.

List Courtesy of RIS MEDIA