How the Black Community Can Get More Business Loans and Stop Gentrification Dead In Its Tracks
The solution to both of these problems can be summed up in 5 simple words:
“We start handling our business!”
First thing we have to do is understand the true nature of money
Money has its own natural laws. It is magnetically attracted to places where it has the best chances of multiplying.
In the hands of a capable person, it is a tool that is used to gain leverage, acquire and/or increase the value of an asset, or improve the efficiency of an operation that is already making money.
Unfortunately, most of us only use our money to buy stuff that is of little or no value.
So we can’t be mad when other ethic groups use money the right way and open up businesses in our communities or buy up the properties and improve them to move in their own people.
That is the true nature of money. And the proper use of it produces power!
So now that we understand the game, here’s how we play it…
How to get loans to open more black businesses
Before we ask any bank for money or our community for support of our black businesses, we have to realize that we can’t be out there half-assing it.
Banks will only give us loans to create more black businesses if they think they have a reasonable chance of getting a return on that loan.
They will do their due diligence so that means we must have a solid business plan that is based on customer research with realistic revenue projections and some kind of asset to pledge as collateral if things don’t go as planned.
We can’t expect to get a loan for that unproven business idea in our heads, especially if hasn’t been carefully thought out and put down on paper.
And if we do get a loan and get that business up and running, our community will only continue to support it if we run it as efficiently and competitively as other ethnic groups run their businesses.
We cant be charging sky-high prices for the same products and services they can get down the street for less or providing sub-par customer service.
Our people will not stand for it.
I know statistics say there is racial disparity between blacks and whites receiving business loans, but personally, I have rarely seen a black entrepreneur with their “ducks in a row” get denied a business loan.
That means they had a solid business plan, a team with experience in operations, decent credit, and collateral or a co-borrower.
But maybe that’s only banks in New York?
Even still, if banks won’t lend to us based on skin-color, there are always SBA loans and government set-asides specifically for minority businesses.
There really are no excuses.
And if you are a business owner or have aspirations to be one… accepting “no excuses” is the exact mindset you’ll have to adopt if you want to succeed in this game.
How to stop gentrification dead in it’s tracks
If we want to stop gentrification, then we need to take some of the money we spend on consumer products and invest in our own neighborhoods.
Part of that investment should go to reaching out to our youth and providing them alternatives to committing violent crimes.
We need more programs like Wheelchairs Against Guns, which is an organization comprised of individuals who were victims of gun violence, that go around to inner city schools and teach our youth conflict resolution strategies, critical thinking, and building and reinforcing their positive self esteem.
Then we have to invest in cleaning up our streets and taking care of our properties. Cleanliness and curb appeal will boost the value of the properties in our neighborhoods.
And once the value goes up, instead of selling to outside developers, we get home equity loans and use that money to buy another home, building, or business.
This will attract more affluent blacks who can afford to continue investing in the community.
And this is how we stop gentrification and create self sustaining black neighborhoods and grow black wealth.
This is just some food for thought.
If it makes sense to you and you’re interested in working with a group of like minded brothers and sisters to rebuild the black community then we invite you to join us.