In 2018, before the COVID-19 pandemic, scores of businesses struggled with accessing adequate financing. A McKinsey & Company study found that while all small business owners faced challenges during COVID-19, Black small business owners were some of the most vulnerable.
According to the Federal Reserve Bank of New York, about 58 percent of Black-owned businesses were at risk of financial distress before the pandemic, compared with about 27 percent of white-owned businesses. According to the U.S. Census, of the 70,891 businesses operated in Memphis, 43,949 or 62 percent, are minority-owned firms, also known as Minority Business Enterprises or MBE’s.
In March 2022, The MMBC Continuum, an economic accelerator for area MBEs, entered a partnership with the Tennessee Small Business Development Center at Southwest Tennessee Community College and other local agencies to execute the U.S. Department of Commerce’s Minority Business Development Agency Coronavirus Response & Relief Program headed by Brittney Elkins. The program provides critical financial advisement and support to 50 minority-owned business enterprises. The participating MBEs receive financial advisement and assistance with preparing loan applications and other financial documents.
