FundBLACKFounders

• There’s an expectation by lenders that entrepreneurs should be able to raise initial capital through friends and family. However, we know that white Americans have 11 times more wealth than Black Americans.
• Only 1 % of start-up capital accrues to Black entrepreneurs.
• The average white business starts with $107,000 and the average Black business only has $35,000.
• Black individuals represent 14.2% of the US population but only 2.2% of employer businesses.
• If Black-owned businesses were equivalent to their representative size of the U.S. population, there would be 806,218 more Black-owned businesses.
• Black-owned businesses are much more likely to hire Black workers.
• 90% of all new businesses do not have any outside investors, and often use equity in their homes to start their firms, but property values in Black neighborhoods are significantly undervalued and Black homeownership rates are significantly less than white homeownership rates, effectively removing this option for many would-be Black business owners.
• Black-owned businesses have higher loan denial rates and than white-owned businesses even after controlling for credit-worthiness.

The Louisville Financial Empowerment Center (FEC), in association with the national Cities for Financial Empowerment Fund (CFE Fund), has been selected to participate in the Small Business Boost (SBB) Initiative.

Through the Small Business Boost initiative, Louisville FEC counselors will support business owners and entrepreneurs in addressing personal financial challenges that present barriers to success in building wealth through business ownership. In addition, Louisville FEC counselors will receive training on how to navigate entrepreneurial ecosystems and drive business outcomes through improving personal finances.

Entrepreneurs and small business owners can email fec@louisvilleky.gov or call 502-574-5789 to make a FEC financial counseling appointment.