Similar video21 Black Owned Banks - #BankBlack - #BlackExcellist The Boston Globe Innovators
Why Black Americans Need Black-Owned Banks
Hours after a 19-year-old Black man likely tripped and reached out in alarm for the hand of a nearby white woman in March 1921, Tulsa, Oklahoma’s white-owned newspaper demanded his lynching with ruthless clarity: “Nab Negro for Attacking Girl in Elevator.”
Over the next 18 hours and across 35 city blocks, smoke and ash billowed above a nightmare-scape of thousands of incinerated homes and hundreds of butchered Black bodies—all for an offense that historians now agree was widely exaggeratedly and misunderstood. By the time sun rose the following morning over Greenwood, rioters had reduced the seat of Black prosperity in America to rubble. One hundred years later, we’ve still not recovered.
White mobs, many of them deputized and armed by local officials, managed to destroy what is estimated to be the equivalent today of more than $200 million in property value from local Black home and business owners. The liquid asset fallout from the attack was even worse because many Greenwood families stored their cash savings in their homes out of fear of commercial banks.
Then as now, Black skepticism of financial institutions is deeply rooted, elastic and intergenerational. That apprehension toward banks helps explains why one of us felt it necessary to stash mountains of cash under a mattress after being drafted out of high school into the NBA. It’s a sentiment learned from our grandmothers and from theirs. You can trace it to 1874, 50 years before the Greenwood riots, to the collapse of Freedman’s Savings and Trust Company, whose federal mismanagement resulted in the catastrophic loss of deposits from freed wells fargo bank na state of incorporation worth more than $22 million today.
The United States Congress authorized the 1865 chartering of Freedman’s to help newly freed slaves build wealth. Less than a decade later, scratch deposits from freedmen and freedwomen across the country had swelled to the current equivalent of $65,200,000, but corruption and malpractice by the bank’s all-white leadership—until the eleventh-hour installation of the abolitionist Frederick Douglass—resulted in the bank’s insolvency.
A century and a half after Freedman’s collapse, Black mistrust of banks remains so durable today that 49% of all Black households in America are underbanked or completely unbanked, compared to just 15% of whites, according to the Federal Reserve. Instead, these families rely on costlier and often predatory alternatives like check-cashing, payday loans, money orders and prepaid credit cards. By one estimate, those fees can exceed $40,000, an amount more than double the average net worth of the typical Black household in America—over a financial lifetime.
That exclusion carries additional burdens, too, like the inability to secure financing for home or business loans. According to the most recent data, mortgage applications by Black borrowers are rejected at a rate 80% higher than white applicants. At the same time, business loan applications by Black applicants are twice as likely than white firms to be denied credit.
Read more:A Survivor of the Tulsa Race Massacre Says Her Family Is Still Trying to Break Its Curse, 100 Years Later
Black wealth in this country has never recovered from the Greenwood riots and Freedman’s collapse, so it’s ironic that many—including us—believe the key to closing America’s yawning racial wealth gap lies in Black banks. Freedman’s was the profoundly flawed execution of an otherwise brilliant notion that remains as timely today as it was in the days following Emancipation: a mission-driven bank to help low-income Black families build real wealth.
As of June 2020, there were 18 Black banks in communities across the U.S., each working to shrink the share of the underbanked population and extend capital to entrepreneurs and would-be homeowners that major commercial banks will not.
Supporting Black banks through commercial transactions, capital investments or significant deposits diversifies the institutions’ loan portfolios and bolsters their capital cushion to serve disadvantaged communities better. Doing so will finally help liberate Black banks from the shadow and suspicion of Freeman’s collapse by enabling their missions to uplift the underbanked and disadvantaged.
One young man stumbling in an elevator—that was all it took to erase generations of Black wealth. We can’t change the scarred history of Tulsa, but we can change its future. Banking Black enables these lenders to deploy resources into communities that have never recovered from state bank of the lakes mortgage rates injustices.
Contact us at [email protected]
Best Banks for Small Businesses
Our editors independently research and recommend the best products and services. You can learn more about our independent review process and partners in our advertiser disclosure. We may receive commissions on purchases made from our chosen links.
If you run a small business, a bank account isn’t an option, it's a requirement. Every business should have its own dedicated checking account, and possibly savings, credit cards, and other accounts, to keep cash safe and build a financial record for the business.
But don’t just head to the closest bank and think they will offer the best deal or even all of the features you need in a small business bank. It is important to do research to choose the best bank for your unique business needs. When reviewing accounts, consider some of these features, which may or may not matter for your business: cash deposits, mobile check deposits, free ATMs, keeping all accounts at one bank, interest-bearing checking accounts and in-person customer service.
And while keeping in mind that business bank accounts tend to charge higher fees than personal accounts, you should still seriously consider the costs of a bank account. Major fees for business bank accounts include monthly account fees, excess transaction fees and excess cash deposit fees.
Because every business is different, there is no perfect account for small businesses. Some small businesses may be happy with an online-only bank that does not charge any monthly fees. Other businesses care more about frequent cash deposits and will never need to deposit a check from their phone.
The only universal desire in small business bank accounts is low fees, so be on the lookout for fees that you may be charged unless you meet specific criteria to avoid them.
Now that we have all that out of the way, let's take a look at the best banks for small businesses.
Best Banks for Small Businesses in 2021
- Best Overall: Chase
- Best for Online-Only Checking: Axos Bank
- Best Credit Union: Navy Federal Credit Union
- Best for Number of Branches: Wells Fargo
- Best for Business Analysis: M&T Bank
- Best Fee-Free Brick-And-Mortar Checking: US Bank
Best Overall: Chase
If you want the traditional bank experience, Chase is your best option as a small-business owner. Chase has locations around the country, offers business checking with no fee as long as you maintain a $2,000 minimum balance, plus one of the best online banking and mobile banking systems available.
Chase is also a great bank for business credit cards. Chase Ink Business Preferred, for example, offers high-value rewards you can use toward free and discounted travel. If you have your checking and savings accounts at the same place, it is easier to manage everything with one online banking login.
In summary, Chase takes the top spot because it offers everything your business might need, lots of locations, and options to dodge monthly service fees. Both small, solo businesses and brick-and-mortar businesses with many employees can easily find their needs met at Chase.
Best for Online-Only Checking: Axos Bank
While Capital One put its Spark Business Checking on hiatus, Axos Bank jumped up to claim the spot for the best online checking account that is currently available for small businesses. Axos Bank opened in 2000 and was a pioneer of online-only banking in the United States. The company has ample experience in providing banking services for both business and personal customers.
The Business Interest Checking account is free with a rather large $5,000 average daily balance, otherwise, you’ll pay a $10 monthly fee. The account includes up to 50 free items per month, so it is not ideal for the busiest businesses with a huge number of transactions or a smaller business that keeps a low daily balance. But it does offer interest, currently 0.80 percent, and great online and mobile banking options.
Axos also offers a basic business checking account with no monthly fee, up to 200 free items per month and other goodies with no interest. Depending on your needs, this may be better than the Business Interest Checking account.
Axos also offers money market and savings accounts for businesses, CDs, and a full suite of cash management services. It’s pretty impressive for any bank, not just online banks. If you don’t need to work with cash but do need a serious bank, consider Axos Bank for your small business banking needs.
Best Credit Union: Navy Federal Credit Union
While it is not technically a bank, Navy Federal Credit Union offers top quality business banking services perfect for a wide range of small businesses. Those include business checking and savings, loans, credit cards, payment processing and even retirement and insurance for you and your employees.
Credit unions are not-for-profit entities. This means they tend to charge lower fees and offer higher interest rates on savings than for-profit banks.
To open a business bank account at Navy Federal, you’ll first need to become a business member. This requires you to join the credit union yourself as an individual first. You’ll also need a $250 opening deposit for sole proprietorships or $255 for business entities to get started as a business member. Additionally, you already need to be a regular member of the credit union which requires a $5 deposit into a savings account.
Credit unions are typically geared more toward consumers than machias savings bank presque isle me but don’t overlook the big opportunity to save money with a business checking and savings account at a credit union.
Best for Number of Branches: Wells Fargo
Wells Fargo is a hugely popular bank, despite some recent bad PR. It is the largest Small Business Administration lender for SBA loans and has more branches than any other bank in the United States.
Wells Fargo offers four different business checking accounts. These accounts all have monthly fees, but you can avoid them with a minimum balance requirement in most cases. For the Initiate Business Checking Account, the minimum is $500 to avoid fees.
Because Wells Fargo is so big, it offers virtually any service your business might need. That includes things like payroll, HR and business tax services. But you may pay more to get many of those services from Wells Fargo than some companies that specialize in those various services.
If your small businesses use a lot of cash, Wells Fargo is one of your best options. Not only can you deposit cash at the largest branch network, but you can also withdraw fee-free from its massive network of ATMs.
Best for Business Analysis: M&T Bank
If you live on the East Coast, consider M&T Bank for your small business banking needs. M&T has 700 branches in New York, Maryland, New Jersey, Pennsylvania, Delaware, Connecticut, Washington, D.C., Virginia, West Virginia, Vermont, and Massachusetts. But M&T stands out for more than its branch network.
M&T Bank offers relationship managers who do more than ups account number 10 characters you bank accounts and help you with customer service questions. These bankers review your business finances inside and out to help you better understand them and achieve best small business success.
M&T Bank is a top 10 SBA lender and offers a range of bank accounts. There are five checking options that may be a fit for most small businesses, plus specific accounts for medical and professional services industries. The biggest downside is that you need to maintain a big balance to avoid fees in most of those accounts. To avoid the $10 fee on the basic Simple Checking for Business account, you have to maintain a $2,500 average balance.
Best Fee-Free Brick-And-Mortar Checking: US Bank
US Bank isn’t quite as big as some of its competitors, but it still offers a large network of branches and ATMs around the United States. The biggest standout for small businesses is the Silver Business account, which offers checking with no monthly maintenance fee.
That account is great for smaller businesses with less than 150 transactions per month (you’ll pay .50 each for additional items). You can deposit up to 20 mobile checks each month with no fee and pay the same .50 for additional mobile deposits.
Like others on this list, US Bank offers additional services through a bundle including credit card processing, payroll servicing and invoicing. Other checking accounts have a higher number of free transactions, but require a large balance to avoid monthly services fees up to $25 per account.
Black-owned businesses (or Black businesses), also known as African-American businesses, originated in the days of slavery before 1865. Emancipation and civil rights permitted businessmen to operate inside the American legal structure starting in the Reconstruction Era (1863–77) and afterwards. By the 1890s, thousands of small business operations had opened in urban areas. The most rapid growth came in the early 20th century, as the increasingly rigid Jim Crow system of segregation moved urban Blacks into a community large enough to support a business establishment. The National Negro Business League—which Booker T. Washington, college president, promoted—opened over 600 chapters. It reached every city with a significant Black population.
African Americans have operated virtually every kind of company, but some of the most prominent Black-owned businesses have been insurance companies, banks, recording labels, funeral parlors, barber shops, beauty salons, restaurants, soul food restaurants, record stores, and bookstores.
Watercolor of James Forten (1766-1842), the wealthiest Black man of his time in Philadelphia, and believed to have been painted during his lifetime.
A lithograph of noted abolitionist and autobiographer Lunsford Lane (1803- ca. 1863) reproduced in William George Hawkins' biography of him.
Portrait of Elizabeth Keckley, abolitionist, seamstress to First Lady Lincoln and autobiographer, date unknown.
Portrait of businessman, autobiographer and politician Mifflin Wistar Gibbs in 1902.
Real estate mogul Robert Reed Church, the South's first Black millionaire, in a photograph for the Washington D.C.-based newspaper "The Colored American," in 1903.
By 1920, there were tens of thousands of Black businesses, the great majority of them quite small. The largest were insurance companies. The League had grown so large that it supported numerous offshoots, serving bankers, publishers, lawyers, funeral directors, retailers and insurance agents. The Great Depression of 1929-39 was a serious blow, as cash income fell in the Black community because of very high unemployment, and many smaller businesses closed down. During World War II many employees and owners switched over to high-paying jobs in munitions factories. Black businessmen generally were more conservative elements of their community, but typically did support the Civil Rights Movement. By the 1970s, federal programs to promote minority business activity provided new funding, although the opening world of mainstream management in large corporations attracted a great deal of talent. Black entrepreneurs originally based in music and comfort inn rockland ma diversified to build "brand" names that made for success in the advertising and media worlds.
Before Emancipation (until 1865)
Black entrepreneurship can be traced back to when Africans were first forcibly brought to North America in the 16th century. Many African Americans who gained their freedom from slavery opened their own businesses, and even some enslaved African Americans were able to operate businesses, either as skilled tradespeople or as minor traders and peddlers. Enslaved African Americans operated businesses both with and without their owners' permission.
Free blacks facing a generally hostile environment occasionally operated small businesses. Profit-making businesses were created by more free and enslaved African Americans than one might realize from the usual survey of antebellum America. When the opportunity presented itself, it was taken by these men and women, sometimes timidly, sometimes whole-heartedly, and often endorsed by the masters of the enslaved. Businesses often evolved out of skills or specialties the business owner, or service provider, already knew. Examples include:
- Tobacconist — As a young enslaved man,Lunsford Lanerecalls selling a basket of peaches for money he could keep and very soon, he says, "plans for money-making took the principal possession of my thoughts." In six to eight years he had amassed one thousand dollars, enough to purchase his freedom, as we read from The Narrative of Lunsford Lane (1842).
- Shoemaker — William J. Brown was born into a free black family in Rhode Island and as a young man faced discrimination and often unethical treatment from whites as he strove to pursue a trade and career. In his selection from his Life of William J. Brown of Providence, R. I. (1883) we read his frustrating experiences as a store clerk and apprentice shoemaker.
- Sailmaker —James Forten, Sr., a freeman and grandfather of Charlotte Forten (see #3: Free-born), learned the sail-making trade after the Revolution, bought his employer's business, and later became the wealthiest black man in Philadelphia. In this 1835 article from the white journal The Anti-Slavery Record, a white seating chart at jack trice stadium describes a visit to Forten's sailmaking business.
- Barber — After being emancipated by his enslaver in 1820, William Johnson became a successful black businessman in Natchez, Mississippi, operating a barber shop, loaning money and acquiring real estate.
- Merchant — Free-born in Philadelphia, Mifflin Gibbs became a businessman, lawyer, politician, and abolitionist. For several years he operated a clothing store in San Francisco, which he we learn from his autobiography Shadow and Light (1902).
- Dressmaker — After purchasing her freedom in St. Louis, Elizabeth Keckley moved to Washington, DC, and became the dressmaker for Mary Todd Lincoln, producing elegant gowns for the capital's elite women. Her 1868 autobiography Behind the Scenes display her ardor and initiative in creating her business and her life.
Emancipation and civil rights permitted businessmen to operate inside the American legal structure starting in the Reconstruction Era (1863–77) and afterwards. By the 1890s, thousands of small business operations had opened in urban areas.
From the late 1880s there was a remarkable development of Negro business – banks and insurance companies, undertakers and retail stores. It occurred at a time when Negro barbers, tailors, caterers, trainmen, blacksmiths, and other artisans were losing their white customers. Depending upon the Negro market, the promoters of the new enterprises naturally upheld the spirit of racial self-help and solidarity.
Memphis Tennessee was the base for Robert Reed Church (1839–1912), a freedman who became the South's first black millionaire. He made his wealth from speculation in city real estate, much of it after Memphis became depopulated after the yellow fever epidemics. He founded the city's first black-owned bank, Solvent Savings Bank and Trust, ensuring that the black community could get loans to establish businesses. He was deeply involved in local and national Republican politics and directed patronage to the black community. His son Robert Reed Church, Jr., became a major politician in Memphis. He was a leader of black society and a benefactor in numerous causes.
Black communities were undoubtedly negatively affected by the enforcement of racial segregation in cities and urban areas where blacks were limited in what residential areas they could occupy. Whether in the South or the North, segregation limited the social, educational, and economic progress of the varying black communities forced into this racist social practice. However, new economic, anthropological and census research conducted establishes how black communities in the North during the late 19th century fought against racial segregation by donning new attitudes towards commerce and entrepreneurship. Racial segregation in the North during the late 19th century saw a considerable rise in black entrepreneurship and black owned small businesses within their respective communities. These small business owners were able to take advantage of constraints placed upon the African American communities, and exploit a market of untapped black consumers that at the time were not allowed a great deal of purchasing power in white economic markets. This rise in "negro markets" as framed by St. Clair Drakeand Horace R. Clayton in Black Metropolis occurred in the South Side of cities like Chicago where African Americans established a region of their own where the number of black owned businesses reached 2,500 by 1937 in South Side Chicago.
The Golden Age (1900–1930)
The nadir of race relations was reached in the early 20th century, in terms of political and legal rights. Blacks were increasingly segregated. However the more they were cut off from the larger white community, the more black entrepreneurs succeeded in establishing flourishing businesses that catered to a black clientele.
The most rapid growth came in the early 20th century as the increasingly rigid Jim Crow system of segregation moved urban blacks into a community large enough to support a business establishment. The National Negro Business League, promoted by college president Booker T. Washington, opened over 600 chapters, reaching every city with a significant black population. top black banks in the us 1920, there were tens of thousands of black businesses, the great majority of them quite small. The largest were insurance companies. The League had grown so large that it supported numerous offshoots, including the National Negro Bankers Association, the National Negro Press Association, the National Association of Negro Funeral Directors, the National Negro Bar Association, the National Association of Negro Insurance Men, the National Negro Retail Merchants' Association, the National Association of Negro Real Estate Dealers, and the National Negro Finance Corporation. The Great Depression of 1929-39 was a serious blow, as cash income fell in the black community because of unemployment and many smaller businesses closing down. During World War II many employees can indeed owners switched over to high-paying jobs in munitions factories. Black businessmen generally were more conservative elements of their community, but typically did support the civil rights movement. By the 1970s, federal programs to promote minority business activity provided new funding, although the opening world of mainstream management attracted a great deal of talent.
In urban areas, North and South, the size and income of the black population was growing, providing openings for a wide range of businesses, from barbershops to insurance companies. Undertakers had a special niche, and often played a political role.
The number of Black-owned businesses doubled from 20,000 in 1900 to 40,000 in 1914. There were 450 undertakers in 1900, but by 1914 they had doubled to 1000. The number of drugstores rose from 250 to 695. The number of retail merchants – most of them quite small – jumped from 10,000 to 25,000.
— The National Negro Business League
Historian Juliet Walker calls 1900–1930 the "Golden age of black business." According to the National Negro Business League, the number black-owned businesses doubled from 20,000 1900 and 40,000 in 1914. There were 450 undertakers in 1900 and, rising to 1000. Drugstores rose from 250 to 695. Local retail merchants – most of them quite small – jumped from 10,000 to 25,000.
One of the leading centers of black business was Atlanta. According to August Meier and David Lewis, 1900 was the turning point as white businessmen reduced their contacts with black customers, black entrepreneurs rush to fill the vacuum by starting banks, insurance companies, and numerous local retailers and service providers. Furthermore, the number of black doctors and lawyers increased sharply. All this of course was in addition to the traditional businesses, such as undertakers and barbershops that had always depended on a black clientele.Durham, North Carolina, a new industrial city based on tobacco manufacturing and cotton mills, was noted for the growth of its black businesses. Durham lacked traditionalism based on plantation-era slavery, and practiced a laissez-faire that allowed black entrepreneurs to flourish.
College president Booker T. Washington (1856–1915), who ran the National Negro Business League, was the most prominent promoter of black business. He moved from city to city to sign up local entrepreneurs into his national network the National Negro Business League.
In 1915, C.R. Patterson and Sons under the leadership of Frederick Patterson, founded the first African American car manufacturing company of the Greenfield-Patterson car which remained active until 1939.
By the 1920s, the federal government had set up a small unit to distribute information to black entrepreneurs, but no financial aid was forthcoming.
By far the most prominent black entrepreneur of the century of was Charles Clinton Spaulding (1874 – 1952), president of North Carolina Mutual Life Insurance Company in Durham, North Carolina. It was the nation's largest black-owned business. It operated a system of industrial insurance, whereby its salesmen collected small premiums of about 10 cents every week from its clients. That provided them insurance for the following week; if the client died the salesman immediately arranged payment of the death benefit of about $100. That paid for suitable funeral, which was a high prestige event to the black community. Black undertakers also benefited and themselves became prominent business men. By 1970, they grossed more than $120 million for 150,000 race funerals each year.
African-Americans were tourist entrepreneurs in certain resort areas, such as Oak Bluffs, Massachusetts, and developed on a greater scale, Idlewild, Michigan.
Newspapers and magazines
Main article: African-American newspapers
African-American newspapers flourished in the major cities, with publishers playing a major role in politics and business affairs. Representative leaders included Robert Sengstacke Abbott (1870–1940), publisher of the Chicago Defender; John Mitchell, Jr. (1863–1929), editor of the Richmond Planet and president of the National Afro-American Press Association; Anthony Overton (1865–1946), publisher of the Chicago Bee, and Robert Lee Vann (1879–1940), the publisher and editor of the Pittsburgh Courier.Leon H. Washington Jr. founded the Los Angeles Sentinel in 1933.
John H. Johnson (1918–2005) was the founder of the Johnson Publishing Company in 1942. He rose from poverty to millionaire by the time he was thirty-one. In 1982, he became the first African American to appear on the Forbes 400. Johnson's Ebony and Jet magazines were among the most influential African-American media by 1950.
Most of the African-Americans in business were men, however women played a major role especially in the area of beauty. Standards of beauty were different for whites and blacks, and the black community developed its own standards, with an emphasis on hair care. Beauticians could work out of their own homes, and did not need storefronts. As a result, black beauticians were numerous in the rural South, despite the absence of cities and towns. They pioneered the use of cosmetics, at a time when rural white women in the South avoided them. As Blain Roberts has shown, beauticians offered their clients a space to feel pampered and beautiful in the context of their own community because, "Inside black beauty shops, rituals of beautification converged with rituals of socialization." Beauty contests emerged in the 1920s, and in the white community they were linked to agricultural county fairs. By contrast in the black community, beauty contests were developed out of the homecoming ceremonies at their high schools and colleges.
Madame C.J. Walker, the first self-made woman millionaire in the U.S, photographed between 1905 and 1914.
A photo of Walker's manufacturing plant in Indianapolos, Indiana, 1911.
The most famous entrepreneur was Madame C.J. Walker (1867–1919); she built a national franchise business called Madame C.J. Walker Manufacturing Company based on her invention of the first successful hair straightening process.Marjorie Joyner (1896–1994) was the first black graduate of a beauty school in Chicago, where she got to know Madame Walker and became her agent. By 1919 Joyner was the national supervisor over Walker's 200 beauty schools. A major role was sending their hair stylists door-to-door, dressed in black skirts and white blouses with black satchels containing a range of beauty products that were applied in the customer's house. Joyner taught some 15,000 stylists over her fifty-year career. She was also a leader in developing new products, such as her permanent wave machine. She helped write the first cosmetology laws for the state of Illinois, and founded both a sorority and a national association for black beauticians. Joyner was friends with Eleanor Roosevelt, and helped found the National Council of Negro Women. She was an advisor to the Democratic National Committee in the 1940s, and advised several New Deal agencies trying to reach out to black women. Joyner was highly visible in the Chicago black community, as head of the Chicago Defender Charity network, and fundraiser for various schools. In 1987 the Smithsonian Institution in Washington opened an exhibit featuring Joyner's permanent wave machine and a replica of her original salon.
The leading beauty salon for black women in Washington was operated by the sisters Elizabeth Cardozo Parker (1900–1981) and Margaret Cardozo Holmes (1898–1991) from 1929 to 1971. The Cardozo Sisters Hair Stylists expanded to five storefronts stretching an entire city block near the campus of Howard University, with 25 employees assisting up to 200 clients a day. They had a voice in the national beauticians community, and demanded an end to discriminatory practices.
Rose Meta Morgan (1912–2008) founded the House of Beauty salon to promote African-American standards of beauty, in opposition to those "white" standards that sought silky straight hair and light skin. Born in rural Mississippi, she moved to Chicago as a child and showed entrepreneurial skills as a teenager. She relocated to New York City in 1938, where her small beauty shop became the world's largest African-American beauty parlor. She staged fashion shows in Harlem, and sold her brand of cosmetics designed "to glorify a woman of color". She was briefly married to the famous heavyweight boxing champion Joe Louis from 1955 to 1958. In 1965 she founded New York City's only black commercial bank, Freedom National Bank; in 1972 she set up a franchise operation for beauticians. Vera Moore (b 1950) marketed her unique brands of Vera Moore Cosmetics, including some products developed by her husband. She opened stores and upscale malls, and had superstars as clients.
In addition to the more prominent businesses listed above, African Americans have strong traditions of owning and operating small businesses such as restaurants, drug stores, newsstands, corner stores, candy shops, liquor stores, groceries, bars, and gas stations.
African Americans also have a length history of ownership in music-related businesses, including record stores, nightclubs, and record labels.African-American bookstores were closely tied to radical political movements, including Black Power, black nationalism, pan-Africanism, and Marxism. African-American owned funeral homes also served an important role during the civil rights movement. These spaces allowed for the violence committed by white citizens to be made more public through photography and television.
"Double duty dollars"
Main article: Double-duty dollar
The term '"double duty dollar"' was used in the US from the early 1900s through the early 1960s, to express the notion that dollars spent with businesses hiring blacks simultaneously purchased a commodity and advanced the race. Where that concept applied, retailers who excluded African Americans as employees effectively first columbia bank near me them as patrons too.
Religious leaders and social activists such as Booker T. Washington and Marcus Garvey urged their communities to redirect their dollars from suppliers who excluded African Americans to suppliers with more inclusive practices. In the 1940s and 1950s, Leon Sullivan applied the broader phrase selective patronage to note consumers' choice of suppliers as a tool a) to influence suppliers toward fairer, more just interactions with African Americans, and b) to build demand for African American suppliers. In retrospect, the movement had little impact.
The national agenda
Minority entrepreneurship entered the national agenda in 1927 when Secretary of Commerce Herbert Hoover set up a Division of Negro Affairs to provide advice, and disseminate information to both white and black businessman on how to reach the black consumer. Entrepreneurship was not on the New Deal agenda after 1933. However, when Washington turned to war preparation in 1940, the Division of Negro Affairs tried to help black business secure defense contracts. Black businesses were not oriented toward manufacturing in the first place, top black banks in the us generally were too small to secure any major contracts. President Eisenhower disbanded the agency in 1953. With the civil rights movement at full blast, Lyndon Johnson coupled black entrepreneurship with his war on poverty, setting up special program in the Small Business Administration, the Office of Economic Opportunity, and other agencies. This time there was money for loans designed to boost minority business ownership. Richard Nixon greatly top black banks in the us the program, setting up the Office of Minority Business Enterprise (OMBE) in the expectation that black entrepreneurs would help defuse racial tensions and possibly support his reelection .
The national market
Most national corporations before the 1960s ignored the black market, and paid little attention to working with black merchants or hiring blacks for top black banks in the us positions. Pepsi-Cola was a major exception, as the number two brand fought for parity with Coca-Cola. The upstart soda brand hired Edward F. Boyd (1914–2007), a pioneer black advertiser. Boyd hired local black promoters who penetrated into black markets across the South and the urban North. Journalist Stephanie Capparell interviewed pnc bank auto loan number men who were on the team in the late 1940s:
The team members had a grueling schedule, working seven days a week, morning and night, for weeks on end. They visited bottlers, churches, "ladies groups," schools, college campuses, YMCAs, community centers, insurance conventions, teacher and doctor conferences, and various civic organizations. They got famous jazzmen such as Duke Ellington and Lionel Hampton to give shout-outs for Pepsi from the stage. No group was too small or too large to target for a promotion.
Pepsi advertisements avoided the stereotypical images common in the major media that depicted one-dimensional Aunt Jemimas and Uncle Bens whose role was to draw a smile from white customers. Instead it portrayed black customers as self-confident middle-class citizens who showed very good taste in their soft drinks. They were economical too, as Pepsi bottles were twice the size.
In 1968, the first black-owned McDonald's franchise opened in Chicago.
The 21st century
In 2002, African American-owned businesses accounted for 1.2 million of the US's 23 million businesses. As of 2011[update] African American-owned businesses account for approximately 2 million US businesses. Black-owned businesses experienced the largest growth in number of businesses among minorities from 2002 to 2011. The Dodd–Frank Wall Street Reform and Consumer Protection Act of 2010 had as one goal to assist black-owned businesses land more federal contracts. It required federal agencies to open an Office of Minority and Women Inclusion (OMWI) to track their diversity efforts in workforce hiring and procurement.
Additionally African American businessmen became more visible including billionaire BET founder Robert L. Johnson and private equity manager Robert F. Smith.
There were 2.6 million black or African American-owned firms nationally in 2012, up from 1.9 million or 34.5 percent from 2007. Many apps and online directories, such as The Nile List or Official Black Wallstreet, have emerged offering a database of African American owned businesses that consumers can support.
— The U.S. Census
In 2015 The US Census Reported that there were 2.6 million black or African American-owned firms nationally in 2012, up from 1.9 million or 34.5 percent from 2007. Many apps and online directories, such as The Nile List or Official Black Wallstreet, have emerged offering a database of African American owned businesses that consumers can support.
Black entrepreneurs originally based in music and sports diversified what is the atm deposit limit for bank of america build "brand" names that made for success in what is the atm deposit limit for bank of america advertising and media worlds. The most prominent examples include media mogul Oprah Winfrey who became involved in numerous enterprises such as a book club that changed the way America reads. Basketball superstar Magic Johnson was named by Ebony magazine as one of America's most influential black businessmen in 2009, Johnson has numerous business interests, and was a part-owner of the Lakers for several years. Johnson also is part of a group of investors that purchased the Los Angeles Top black banks in the us in 2012 and the Los Angeles Sparks in 2014.
During the 21st Century there have been multiple mediums for African American owned businesses to gain the public eye. Shark Tank, has provided a medium for many black owned businesses to acquire investors, promote their business, and share their story with the world. One of the largest received on Shark Tank was a company called U-Lace. U-Lace was a no-tie shoe lace owned by Tim Talley out of Rochester, New York. Mark Cuban acquired a 35% equity in the company for an investment of 200k. This investment increased revenue to over $3 million. Another successful company to come out of shark tank was a company called Simply Panache Products. This company makes mango preserves and did not receive any investment from the Sharks. This did not discourage or inhibit their future because they have now developed hotels, spas, and restaurants over the mango theme, showing that not only did they not need the help of an investment, but proving their resilience and dedication to their business.
The pandemic has been a factor in black-owned businesses and how they are performing during this time period. A research study conducted by the Federal Reserve has found that black-owned businesses have been hit harder in the pandemic than others because of their geography, limited reach to key federal aid programs, and weaker ties to banks. They found that counties with high concentrations of black-owned businesses had a high amount of Covid-19 cases, meanwhile counties with higher shares of white-owned businesses had a lower incidence of Covid-19 cases. The result of this is the direct (longer forced closure, Covid-19 symptoms) and indirect (social distancing, fewer customers) changes on the black-owned businesses. The Paycheck Protection Program, which has $670 billion in loans to help small businesses, saw less volume of their loans go through the program to high concentrated areas of black-owned businesses. The Federal Reserve found in their study that in "30 U.S. counties that contain 40% of receipts from black-owned businesses, about 15%-20% of firms received Paycheck Protection Program loans", a rate in line with the national average. However, they found that there is a significant variation across the 30 countries with lower volumes in areas such as the Bronx, New York, Wayne County, Michigan, and Detroit, Michigan. They concluded that a massive reason for this is their geography and the current situation that each of those areas faced at the time with the pandemic. Another part of the study found that the Paycheck Protection Program may have given less loans to black-owned businesses because of their weak ties to financial institutions. At the beginning of the pandemic, many large banks prioritized customers whom with they had existing relationships in an effort to manage the overwhelming demand for loans and support. The last part of the study found that black-owned businesses are less likely to have a recent borrowing relationship with a bank. The Federal Reserve concluded their top black banks in the us with the statement of, "To have the greatest impact, the next round of Covid-19 relief should be more targeted geographically to focus on the hardest hit areas and communities that lack critical infrastructure (hospitals, banks) to ameliorate the gaps".
During top black banks in the us 2020–21 United States racial unrest, spurred by messages on social media, American consumers sought out black-owned businesses to support. June saw record high Google searches for "Black-owned businesses near me" and smartphone restaurant discovery apps added features for discovering black-owned restaurants. Businesses on social media lists saw significantly increased sales. Black-owned bookstores in particular had difficulty meeting demand. The Top black banks in the us Greenwood digital bank opened in 2020 to provide financial services specifically for Americans of color and encourage competition from larger banks.
There is now a large selection of public resources that are available which allow for black-owned businesses to receive help. These resources aid the businesses furthermore since black-owned companies have been hit hard during the COVID-19 disruptions.Resources that allow for these businesses to get ahead and give guidance. The Black Business Association, based out of Los Angeles, is a non-profit that goes to aid in networking and offers training. Black founders are a group that specializes in technology entrepreneurship. While Black Owned Everything has the approach of allowing black businesses to spread their advertisements in the form of pictures. This company uses the popular social media app Instagram to spread its information.
Black Owned Public Companies
A lot of companies stay private to avoid the troubles and scrutiny that comes with private owned companies. In a total on 3,671 businesses that went public in April 2017, only 8 of them were black owned businesses. There are a wide variation of black owned public companies and the number is growing daily. These companies reach many industries such as finance, technology, broadcasting, and healthcare.
RLJ Lodging Trust is a real estate investing company founded in 2000. Their total revenue was $382 Million (as of September 2020)
Urban One is a radio station that was founded in 1987 and went public in 1999. Their total revenue was $262.79 Million (as of September 2020).
Global Blood Therapeutics is a biopharmaceutical company founded in 2011.Their total revenue was $82.51 Million (as of September 2020).
Carver Bankcorp is a banking company founded in 1948. Their total revenue was $9.86 Million.
Broadway Financial Corp. which is a holding company for Broadway Federal bank was founded in 1946 and their total revenue as of September 2020 is $13.71 Million
Another option people have to support black owned businesses is to invest money into black owned public companies by purchasing shares.
|1858–1927||Alonzo Herndon||Founder of Atlanta Life and Atlanta's first black millionaire||Insurance|
|1867-1919||Madam C.J. Walker||The first Black female millionaire and "grassroots saleswoman"||Beauty|
|1874–1952||Charles Clinton Spaulding||President of North Carolina Mutual Life Insurance Company, America's largest Black-owned business||Insurance|
|1906–2005||Mary T. Washington||First African-American woman to become a certified public accountant||Finance|
|1918-2005||John H. Johnson||Founder of the Johnson Publishing Company, one of America's most influential Black-owned businesses||Publishing|
|1929-||Berry Covid testing rockland county and first owner of Motown Records, America's highest-earning Black-owned business for decades||Music bbva compass near me atm||Vernon Jordan||Former executive director of the National Urban League, Clinton administration advisor and top-tier corporate and political power broker||Civil Rights, Business, Law|
|1942–1993||Reginald Lewis||The first Black man to build a billion-dollar company, TLC Beatrice International Holdings Inc. The richest Black man in the 1980s, and listed among the 400 richest Americans in 1993||Finance|
|1954-||Chris Gardner||Founder of the stock brokerage firm Gardner Rich & Co and Christopher Gardner International Holdings||Finance|
|1954-||Oprah Winfrey||The first Black woman billionaire in media and entertainment and a powerhouse influencer||Media and Entertainment|
|1957-||Raymond McGuire||Considered an African American banking pioneer, he is also notable as pioneering Black art collector, one of the top African and African American art collectors in the world||Finance|
- ^Juliet E.K. Walker, "Racism, slavery, and free enterprise: Black entrepreneurship in the United States before the Civil War." Business History Review 60#3 (1986): 343-382. online
- ^Edwin Adams Davis, and William Ransom Hogan, Barber td bank checking account negative balance Natchez (LSU Press, 1973).
- ^Steve Criniti, "Thirty years a slave, and four years a fairy Godmother: dressmaking as self-making in Elizabeth Keckley's autobiography." American Transcendental Quarterly 22.1 (2008): 309+.
- ^August Meier (1963). Negro Thought in America, 1880-1915: Racial Ideologies in the Age of Booker T. Washington. p. 139. ISBN .
- ^for detailed national report on the numbers of black businessmen and their finances in 1890, see Andrew F. Hilyer, "The Colored American in Business," pp 13-22 in National Negro Business League (U.S.) (1901). Proceedings of the National Negro Business League: Its First Meeting Held in Boston, Massachusetts, August 23 and 24, 1900..
- ^Rachel Kranz (2004). African-American Business Leaders and Entrepreneurs. pp. 49–51. ISBN .
- ^Boyd, Robert L. (Fall 2010). "Black Retail Enterprise and Racial Segregation in Northern Cities before the "Ghetto"". Sociological Perspectives. 53 (3): 397–417. doi:10.1525/sop.2010.53.3.397.
- ^Blakeney, Barney. "How integration led to the decline of black-owned businesses". Charleston City Paper. Retrieved May 9, 2017.
- ^"Hit on the Head – "Black Wall Street" – Segregation was better for blacks". whats open in chicago today. Retrieved May 9, 2017.
- ^Kenneth Hamilton, ed., A Guide to the Records of the National Negro Business League. Bethesda, MD: University Publications of America, 1995.
- ^Quincy T. Mills, Cutting along the Color Line: Top black banks in the us Barbers and Barber Shops in America (2013) online
- ^Walter B. Weare, Black Business in the New South: A Social History of the North Carolina Mutual Life Insurance Company (1973).
- ^Robert E. Weems, Jr., Black Business in the Black Metropolis: The Chicago Metropolitan Assurance Company, 1925-1985 (1996)
- ^Robert L. Boyd, "Black undertakers in northern cities during the great migration: The rise of an entrepreneurial occupation." Sociological Focus 31.3 (1998): 249-263. in JSTOR
- ^Juliet E.K. Walker, The history of black business in America: Capitalism, race, entrepreneurship (2009) p 183.
- ^August Meier, "Negro Class Structure and Ideology in the Age of Booker T. Washington." Phylon (1962) 23.3 : 258-266. in JSTOR
- ^August Meier, Negro thought in America, 1880-1915: Racial ideologies in the age of Booker T. Washington (1966) p 140.
- ^W.E.B. Du Bois, The Negro in business: report of a social study made under the direction of Atlanta University (1899) online
- ^August Meier and David Lewis. "History of the Negro upper class in Atlanta, Georgia, 1890-1958." Journal of Negro Education 28.2 (1959): 128-139. in JSTOR
- ^Walter B. Weare, "Charles Clinton Spaulding: Middle-Class Leadership in the Age of Segregation," in John Hope Franklin and August Meier, eds., Black leaders of the twentieth century (1982), 166-90.
- ^Michael B. Boston, The Business Strategy of Booker T. Washington: Its Development and Implementation (2010) online
- ^Louis R. Harlan, "Booker T. Washington and the National Negro Business League" in Raymond W. Smock, ed. Booker T. Washington in Perspective: Essays of Louis R. Harlan (1988) pp. 98-109. online
- ^"The Only African American Automobile Company". National Museum of African American History and Culture. Smithsonian. October 11, 2017. Retrieved December 12, 2020.
- ^Robert E. Weems, "'The Right Man': James A. Jackson and the Origins of U.S. Government Interest in Black Business," Enterprise & Society (2005) 6#2 pp 254-277.
- ^Walter B. Weare, Black Business in the New South: A Social History of the NC Mutual Life Insurance Company (1993)
- ^Weare, "Charles Clinton Spaulding: Middle-Class Leadership in the Age of Segregation," in John Hope Franklin and August Meier, eds., Black leaders of the twentieth century (1982), 166-90
- ^Morris J. McDonald, "The management of grief: a study of black funeral practices." OMEGA-Journal of Death and Dying 4.2 (1973): 139-148.
- ^Nicole Taylor, 'New York Times,' August 22, 2017, "Martha’s Vineyard Has a Nourishing Magic for Black Americans" https://www.nytimes.com/2017/08/22/dining/marthas-vineyard-african-american-community.html
- ^Ronald J. Stephens, 'The Black Eden of Michigan,' University of Nebraska ISBN 0-7385-1890-5
- ^Patrick S. Washburn, The African American Newspaper: Voice of Freedom (2006).
- ^"Leon H. Washington Jr. (1907-1974) • BlackPast". BlackPast. December 18, 2011. Retrieved February 7, 2019.
- ^"20 Jun 1974, 13 - The Baltimore Sun at Newspapers.com". Newspapers.com. Retrieved February 7, 2019.
- ^John H. Johnson, Succeeding Against The Odds (1993).
- ^Blain Roberts, Pageants, Parlors, and Pretty Women: Race and Beauty in the Twentieth-Century South (2014), quote p 96. online review; excerpt
- ^Susannah Walker, Style and Status: Selling Beauty to African American Women, 1920-1975 (2007. excerpt
- ^A'Lelia Bundles, On Her Own Ground: The Life and Times of Madam C.J. Walker (2002) excerpt
- ^Jessie Carney Smith, ed., Encyclopedia of African American Popular Culture (2010) pp 435-38.
- ^Smith, ed., Encyclopedia of African American Popular Culture (2010) pp 134-39
- ^Rachel Kranz (2004). African-American Business Leaders and Entrepreneurs. Infobase Publishing. pp. 199–201. ISBN .
- ^Kranz (2004). African-American Business Leaders and Entrepreneurs. pp. 196–98. ISBN .
- ^Joshua Clark Davis, "For the Records: How African American Consumers and Music Retailers Created Commercial Public Space in the 1960s and 1970s South,"Southern Cultures, Winter 2011
- ^Sanders, Crystal (2014). "Dignity in Life and Death: Undertaker Clarie Collins Harvey and Black Women's Entrepreneurial Activism"(PDF). The Journal of Mississippi History. 76 – via The Mississippi Historical Society.
- ^Gavins, Raymond. "Gordon Blaine Hancock: A Black Profile from the New South." Journal of Negro History 59.3 (1974): 207-227. in JSTOR
- ^ abRobert Mark Silverman, "Ethnic solidarity and black business." American Journal of Economics and Sociology 58.4 (1999): 829-841.
- ^"selective patronage".
- ^Columbus Top black banks in the us (1998). The Black 100: A Ranking of the Most Influential African-Americans, Past and Present. Citadel Press. ISBN .
- ^Louis C. Kesselman, "The fair employment practice commission movement in perspective." Journal of Negro History 31.1 (1946): 30-46. in JSTOR
- ^Robert E. Weems Jr., Business in Black and White: American Presidents and Black Entrepreneurs (2009).
- ^Douglas Schoen (2015). The Nixon Effect: How His Presidency Has Changed American Politics. Encounter Books. pp. 34–35. ISBN .
- ^Stephanie Capparell, "How Pepsi Opened Door to Diversity." CHANGE 63 (2007): 1-26 online.
- ^Stephanie Capparell, The Real Pepsi Challenge: The Inspirational Story of Breaking the Color Barrier in American Business (2007).
- ^"The first black-owned McDonald's opens". African American Registry. Retrieved December 17, 2018.
- ^Minority Groups Increasing Business Ownership at Higher Rate than National Average, Census Bureau Reports U.S. Census Press Release
- ^ abTozzi, John (July 16, 2010). "Minority Businesses Multiply But Still Lag Whites". Businessweek.com. Retrieved April 20, 2012.
- ^Jeffrey McKinney, "Tracking Minority Contracting," Black Enterprise, (2012) 43#2 pp 38-40.
- ^Nsehe, Mfonobong. "The Black Billionaires 2019". Forbes. Retrieved February 10, 2021.
- ^Number of Minority- and Women-Owned Firms Each Increase by More Than 2 Million Nationally U.S. Census Press Release
- ^Cecilia Konchar Farr, Reading Oprah: How Oprah's book club changed the way America reads (SUNY Press, 2005).
- ^Michael D. Basil and William J. Brown. "Magic Johnson and Mark McGwire: The power of identification with sports celebrities." Sports marketing and the psychology of marketing communications (2004): 159-171.
- ^"Top 10 Black-Owned Companies That Were Featured on "Shark Tank" -- And What Happened!". Retrieved April 30, 2021.
- ^ abOmeokwe, Amara (August 4, 2020). "Black-Owned Businesses Hit Especially Hard by Coronavirus Pandemic, Study Finds". Wall Street Journal.
- ^Marcelo, Philip. "Black-Owned Businesses See Sales Surge Amid Racism Reckoning". US News & World Report. Associated Press. Archived from the original on July 4, 2020. Retrieved July 6, 2020.
- ^Fields, Samantha (June 16, 2020). "Black-owned businesses seeing an increase in sales during protests". Marketplace. Retrieved July 6, 2020.
- ^Lynn, Samara (June 25, 2020). "Search for Black-owned businesses up over 1,700% and people are craving fondue: Yelp". ABC News. Retrieved July 6, 2020.
- ^Schuetz, R. A.; Wu, Gwendolyn; Drane, Amanda (July 3, 2020). "As support for Black-owned business grows, some top black banks in the us left behind". Houston Chronicle. Retrieved July 6, 2020.
- ^Peters, Andy (October 8, 2020). "Killer Mike plans bank for Black, Latino consumers". The Atlanta Journal-Constitution. Retrieved October 11, 2020.
- ^Ludwig, Sean (July 28, 2020). "Resources for Black-Owned Businesses". www.uschamber.com/co. Retrieved April 15, 2021.
- ^"Who Made America?
1 Replies to “Top black banks in the us”
Sorry...btt ur letter pattern is totally wrong 🙄🙄