August 1, 2021 marks the beginning of the annual National Black Business Month. This observance highlights the important role of African American businesses to the Black community as well as to the overall national economy.
This year, the pandemic saw a boom in new Black-owned businesses — the largest surge in the last quarter-century. However, all the news isn’t good. The COVID-19 health and economic crisis took a bigger toll on Black Americans, in deaths as well as job and income losses. Some 40% of Black-owned firms closed in the immediate aftermath of the outbreak versus 20% of all active U.S. business, according to research by Robert Fairlie, an economics professor at UC Santa Cruz. Many of the Black-owned businesses that formed last year were what are called “necessity” startups — that is, firms that people started to survive a layoff, or a cut in hours or income.
The SmartBiz Loans infographic below has more overall statistics about African American owned businesses in the U.S.
SmartBiz Loans strives to support minority business owners across America by helping entrepreneurs secure low-cost funds for growth and savings. We're proud of the fact that helped over 230,000 small businesses successfully process PPP loans. We facilitated 70% of PPP loans to minority, women and veteran -owned businesses. Of those 28.4% of PPP loans funded by the banks in our network went to businesses owned by Black or African Americans, vs. the national average of 12%*.
For inspiration from top Black entrepreneurs, check out our post here: Quotes to Inspire Business Owners.