NEW YORK, July 8, 2020 /PRNewswire/ -- The economic fallout
from the COVID-19 pandemic has been devastating for U.S. small
businesses, with many experiencing dramatic declines in revenues
and cash liquidity following the government-mandated closures that
began in March. The effects of the economic downturn have been
especially severe for Black-owned businesses— many of which entered
this crisis undercapitalized.1
As a step towards helping black-owned businesses recover and
move forward, a coalition of four business advocacy groups— the
National Minority Supplier Development Council, US Black Chambers,
National Urban League and Black Enterprise— have partnered with
JPMorgan Chase to launch Advancing Black Entrepreneurs by Chase for
Business. Together with Chase Business Banking, these organizations
have developed an educational curriculum designed specifically for
eligible black entrepreneurs on key topics that are vital to
business growth and sustainability.
Experts from the four business advocacy groups will administer a
series of 90-minute virtual sessions to participating entrepreneurs
at no cost. The first session focuses on how business owners can
address immediate financial needs and build resiliency in the age
of coronavirus. Participating entrepreneurs will receive free
instruction on a variety of topics— including how to protect cash
flow, reduce expenses, maintain vendor relationships, collect
outstanding revenues, and manage inventory and other assets.
"How businesses adapt, innovate and plan for the future will
determine their future survival— and we're committed to helping as
many black entrepreneurs as we can navigate this path," said
Christopher Hollins, Managing
Director of Chase Business Banking. "The businesses that will be
best positioned to thrive after this crisis are those that have
managed cash flows effectively, pivoted business models where
necessary, and strengthened ties to their communities while keeping
employees and customers safe."
Black-owned businesses experienced a 26% decline in cash
balances in March compared to the prior year,2 according
to the JPMorgan Chase Institute, and could require more recovery
assistance than others due to severe revenue shocks in recent
months.
Participating entrepreneurs will also receive instruction on how
to reimagine their businesses if necessary— with insights into how
to build more flexibility into supply chains, develop an online
presence, revisit staffing models, and a primer on accounting best
practices for new grants or loans they may have recently received.
In addition, the course will provide insights into how to manage
banking relationships in this environment.
Here's what the advocacy groups had to say about this
initiative:
- "Black entrepreneurs play a vital role in the economic health
of black communities, and it is critical that we equip them with
the necessary tools and insights at this time," said Adrienne Trimble, President and CEO of the
National Minority Supplier Development Council. "We're looking
forward to working with the coalition and Chase Business Banking to
position black-owned businesses for success and prepare them for
life after the crisis."
- "Although we're certainly in a difficult economic environment,
there are countless examples of businesses that are finding a way
to move forward, and it's important that we share these stories and
provide a roadmap for black entrepreneurs," said Ron Busby, the President and CEO of US Black
Chambers. "Together with the coalition and Chase Business Banking,
we will deliver timely, actionable content to an audience that
needs it on a mass scale."
- "Black-owned businesses are a pillar of our communities, and we
must be intentional about connecting them to crucial resources like
the Advancing Black Entrepreneurs initiative in this time of
crisis," said Marc Morial, the President and CEO of the National
Urban League. "If we don't act now in a meaningful way, we're
facing a real risk of seeing the racial wealth gap accelerate at an
even faster rate."
- "It is important that we connect black business owners to
insights, mentorship and resources during this time of crisis to
help them not just survive, but to position them for life beyond
the crisis," said Derek Dingle,
Senior Vice President and Chief Content Officer at Black
Enterprise. "Advancing Black Entrepreneurs is about helping black
entrepreneurs create sustainable models for growth, and position
them for continued job creation within the communities they
serve."
1 Source: JPMorgan Chase Institute, "Small
Businesses in Black and Hispanic Communities Have Lower
Profitability and Cash Liquidity than Businesses in White
Communities." 9/30/2019
2 Source: JPMorgan Chase Institute, "Small Business
Financial Outcomes during the Onset of
COVID-19." 6/2020
ABOUT JPMORGAN CHASE & CO.
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial
services firm with assets of 3.1 trillion and operations worldwide.
The Firm is a leader in investment banking, financial services for
consumers and small businesses, commercial banking, financial
transaction processing, and asset management. A component of the
Dow Jones Industrial Average, JPMorgan Chase & Co. serves
millions of customers in the United
States and many of the world's most prominent corporate,
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Chase brands. Information about JPMorgan Chase & Co. is
available at www.jpmorganchase.com.
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