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Black Americans Are Using Capitalism to Close Racial Wealth Gaps

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It is these types of stories that the hard left wish didn’t exist because it is the exact opposite of the vision they have for black America. The Community Foundation for Greater Atlanta just announced a crucial partnership to support the “launch and growth of the National Black Bank Foundation (NBBF),” according to BlackNews.com.

The Community Foundation for Greater Atlanta is an organization that serves the city through inspiring philanthropy to benefit its residents. It is a chapter of the national Community Foundation that has 800 other chapters. It is now serving as a “fiscal sponsor of NBBF as it awaits its final IRS determination letter,” which will allow the organization to operate as an independent non-profit.

The National Black Bank Foundation is an organization that “provides material support to America’s Black-owned banks in the form of technical, regulatory, and legal expertise,” according to its website. Their mission is to “mak[e] black banking easy,” “moderniz[e] black banks,” and to build the “black banking movement.”

The Community Foundation will also support NBBF by providing various services including managing donations, financial oversight, and helping the organization grow. According to BlackNews.com:

Black-owned banks have worked to build economic equity for the last century by extending credit for small business loans and home purchases to borrowers that major lenders reject. In minority-majority zip codes, Black banks are often the primary source for fair, non-predatory lending. But countervailing market forces have severely restricted their impact and numbers.

The report also notes that “in 1976, there were 50 Black-owned banks,” and “today, there are just 18.” Even more alarming is the fact that 49 percent of black households were either unbanked or underbanked in 2019, according to the Federal Reserve. By way of contrast, only 15 percent of white families were unbanked or underbanked.

Frank Fernandez, President, and CEO of the Community Foundation for Greater Atlanta said:

Essential to that promise is providing access to banking and wealth building for Black families and businesses. Boosting the infrastructure of Black banks brings more equitable access to financial education, loans and asset building for Black communities. We wanted to support this initiative because at the end of the day, strengthening Black-owned banks ensures that those who have been hit the hardest by systemic racism will now have access to economic opportunity and upward mobility.

The National Black Bank Foundation investment unit is “making a historic injection of tier 1 capital, expected to reach $250 million by 2025,” according to BlackNews.com. This will enable black banks to make $2.5 billion in new loans to predominantly minority communities to help them build wealth.

This initiative was created with the help of accounting firm KPMG and Denton’s, the world’s largest law office to provide support to black-owned banks with technical, legal, and strategic assistance to help them grow.

This is not the only story of its type. There are myriad ways that black entrepreneurs are working to uplift black communities through capitalism. Rather than relying on government largesse, these people embrace the free market. Hip-hop artists like Killer Mike are using the wealth they amassed through their music to buy and build businesses to employ black Americans in predominantly black communities.

But the question is: Why do you never see stories like this showcased in mainstream media outlets? Why would they ignore these types of endeavors? When it comes to left-leaning media, it seems clear that the last thing they would want America to know about the black community is that they are not content with relying on the government to solve their problems.

Moreover, placing black excellence in front of more eyeballs would make it harder to promote the “black people are oppressed and need the government to take care of them” narrative. Even worse, if more Americans – especially conservatives – knew about these efforts to use conservative principles to address racial inequality, they might just support it monetarily. Can’t have that, can we?

Nevertheless, the black community is working hard to combat the legacy of government policies that were specifically designed to place black people behind whites and they are not waiting for the state to step in and fix it. If the Republican Party was smart, it would highlight this area of commonality and use it to build bridges with the black community. Hopefully, the day will come when the GOP finally wises up.