Business

Robert J. Brown Worked With Both MLK and Nixon. Here’s What He Says Went on Behind the Scenes of the Civil Rights Movement

Robert J. Brown Worked With Both MLK and Nixon. Here’s What He Says Went on Behind the Scenes of the Civil Rights Movement

July 30, 2020

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Thu, 07/30/2020 – 12:02

The civil rights power broker talks about his new memoir and working with Martin Luther King Jr. and Richard Nixon.

In your new book, You Can’t Go Wrong Doing Right, you describe being a liaison between business and the civil rights movement in the ’60s. How did you persuade executives to come to the table?

No businesses can be successful in the kind of environment where people are burning down places. Everybody is a potential customer, and it’s all about the money.

You then went to work in the Nixon White House. What do people get wrong about him?

All they have to do is look at Nixon’s record in terms of civil rights. When we took over the White House, there were two black [generals or admirals]. We changed that. I would review the Pentagon’s list of people nominated to be promoted to generals. If I didn’t see black people, I’d send it back.

Did Watergate change your feelings on Nixon? You were accused of being a key figure in drafting an “enemies list” of his foes.

It didn’t change too much. He made some mistakes and errors, and I know he paid for it.

You describe your work with his Office of Minority Business Enterprise as some of your proudest. How do you think that work has held up?

It revolutionized how society thought about minority enterprise, but some people don’t think that’s important. Regional offices that we opened to make sure minorities and women got a chance to get government contracts were closed under President Obama.

How do you think American race relations changed in general during Obama’s presidency?

I thought he was a good President and a good, decent man, but I didn’t see any great movement under him. I don’t think race relations got any worse. It’s getting worse now. Some race-relations problems are more severe than they were 40 or 50 years ago.

The police are so often at the center of those conflicts. How do feel about that, given that your first job was as a cop?

I’m very disturbed, and somewhat surprised but not totally. I was a cop in the ’50s. Those were difficult days. It’s getting more attention now–before, it was your word against the policeman’s; now people show what really happens [by capturing it on] their phones.

As someone who brought a PR perspective to civil rights, what do you think of protests against police brutality like those led by Colin Kaepernick?

He has a right to do that peacefully. This is America. I would’ve sought another way to do that, maybe to organize a series of meetings. I don’t want to be protesting against my country.

Do you think it’s easier or harder to start a movement now than it was in the ’60s?

Nobody is stepping up to the plate. I haven’t seen the churches organize a race-relations conference. Online is ridiculous. How’re you going to get people emotionally involved online? It ain’t going to happen. People need to meet people in the flesh and blood.

As Martin Luther King Day comes around, are there any memories of him that you return to?

He was one of my closest friends. During some meeting with the Rev. King and Ralph Abernathy, I looked down at their socks. One of Martin’s socks had a hole in it. I said, “Ralph, look at Martin’s foot down there, he’s got a hole in his socks.” Ralph lifted up his leg; he had a hole in his. We got the biggest laugh. A couple weeks later, I went back with dozens of black and dark blue socks and gave a pair to each one of them, and then they started giving away the socks to Andrew Young and [now Congressman] John Lewis. Now whenever I see him he pulls up his pant leg and shows me he’s got socks.

This appears in the January 28, 2019 issue of TIME.

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The 2% Solution: Inside Billionaire Robert Smith’s Bold Plan To Funnel Billions To America’s Black-Owned Businesses

The 2% Solution: Inside Billionaire Robert Smith’s Bold Plan To Funnel Billions To America’s Black-Owned Businesses

June 24, 2020

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Wed, 06/24/2020 – 13:41

Robert F. Smith, the private equity billionaire who is the nation’s richest Black person, said on Thursday that large corporations should use 2% of their annual net income for the next decade to empower minority communities. Smith made the comments after circulating a plan among CEOs that first calls on big banks to capitalize the financial institutions that service Black-owned businesses and minority-run entrepreneurial ventures. 

In a keynote address he gave at the Forbes 400 Summit on Philanthropy, Smith, 57, said Black and minority communities have been abandoned by large banks and are starved of the capital needed to build businesses and local institutions. Smith argued that pumping in what he described as “reparative” capital and investing directly in financial architecture would be a fast way to advance economic justice for Black Americans.

“Nowhere is structural racism more apparent than in corporate America,” Smith said. “If you think about structural racism and access to capital, 70% of African American communities don’t even have a branch, bank of any type.”

In recent days, Smith, whose net worth is estimated to be $5 billion, has been sharing a concrete plan with the nation’s business leaders that argues that an investment equal to 2% of net income over the next decade would be a small step toward restoring equity and mobility in America. He has implied that America’s big corporations should feel compelled to support such a plan given the exclusionary practices of many industries over several decades. Smith made the case that the average American household charitably donates 2% of its income annually and is asking corporate America to do the same.

During the pandemic, Smith discovered the structural racism in banking firsthand as he tried to help Black businesses and banks that serve Black communities obtain Paycheck Protection Program loans. Smith found that Black-owned businesses faced numerous structural obstacles and as a result had trouble accessing the emergency financing being provided by the federal government through the banking sector.

The balance sheets of the nation’s 4,700 banks are made up of $20.3 trillion of assets, but only 21 of those banks are Black-owned or led, and they have total assets of just $5 billion, less than 1% of America’s commercial banking assets. Blacks make up 13% of the population of the United States.

In his talk on Thursday, Smith pointed out that the net income of the ten largest U.S. banks over the last ten years was $968 billion. He figured just 2% of that would amount to $19.4 billion, which could be used to fund the core Tier 1 capital of community development banks and minority depository institutions that primarily service Black communities. Smith was also open to the idea that the capital could be donated in a tax-advantaged way to a nonprofit entity that could provide the core bank capital.

In a way, Smith is proposing a private sector solution to reparations, the idea that the federal government pay financial compensation to Black Americans who are the descendants of slaves. Smith believes Black communities have experienced systemic inequality and exclusion in corporate sectors beyond finance, including healthcare, telecommunications and technology. The net income of the biggest U.S. companies in just those sectors was $1.3 trillion combined over the last decade and 2% of those profits, or some $25 billion, could be used to do things like strengthen healthcare infrastructure in minority communities, equalize broadband access, fund STEM education at historically Black colleges and digitize minority small businesses.

Through his plan, Smith envisions the nation’s banking sector could, over the next ten years, provide billions of dollars of capital to Black-owned banks and community development banks, with some of the funds used to digitize these lenders. His plan calls for the telecom and tech sectors to provide money to help prepare 180,000 students at America’s historically Black colleges for the jobs of the future, and to digitize one million minority small businesses.

Smith, who has an engineering degree from Cornell University, is the founder of Vista Equity Partners, the nation’s biggest private equity firm specializing in software transactions. Part of Vista’s stunning success has been built on Smith’s detailed and secret playbook for running software companies, which has helped Vista achieve some of the private equity industry’s best financial returns.

Now, Smith believes his playbook for economic justice could not only ensure Black Americans have better access to opportunity, but also increase the nation’s economic activity by more than $1 trillion annually.

“I think that will show Americans there is hope, there is an opportunity for the American dream to now be revitalized,” Smith said on Thursday. “And frankly, to give us all confidence that we can actually make this a better country and a better place to live.”

Source: Forbes.com

Minority-owned firms seeking to penetrate new markets — domestic & global — and growing in size and scale, can access business experts at a MBDA Business Center. Whether it’s securing capital, competing for a contract, identifying a strategic partner or becoming export-ready, your success is our priority. The Centers are located in areas with the largest concentration of minority populations and the largest number of minority businesses. Click here to find a MBDA Business Center or Specialty Center near you.

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Let’s keep it going . . . and growing! Enterprising Women of Color Virtual Series

Let’s keep it going . . . and growing! Enterprising Women of Color Virtual Series

May 26, 2020

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Tue, 05/26/2020 – 11:06

The Formula for a Winning Comeback
Reflections from Weeks 1 and 2

 

MBDA recently launched the Enterprising Women of Color Forum: The Virtual Series – a 4-week webinar series designed to promote resources and opportunities for women of color entrepreneurs. The virtual series is off to a great start with a community of women entrepreneurs tuned in each week to share ideas, new perspectives, and their formulas for being growth-ready despite difficult times. 

 

Who’s in the Room . . .

Thanks to our event co-partners, the National Minority Supplier Development Council (NMSDC) and The Coca-Cola Company, expert speakers, and a wealth of resources, the events have been more than a success but a magnetic lifeline for the more than 1,600 attendees.

The unique diversity of the audience has ranged from infant stage entrepreneurs to multi-million-dollar firms. All have been met with a collective of powerhouse presenters ranging from experts in the financial industry to a founder and pivotal change agent in the beauty industry.

 

Building the Formula . . .

The inaugural event to the virtual series, Get Money: The Comeback Edition focused on one of the key hurdles WMBEs face today. The session featured four financial and capital industry executives providing real-time resources on how to get the capital needed to move to the next phase of growth. The discussion included engaging dialogue, witty insights, and a host of tips to ensure attendees were focused on solutions to conquer their challenges!

 

The second installment, a Fireside Chat with the Founder of Carol’s Daughter Lisa Price, provided a looking glass for all the entrepreneurs working in their passion.   The discussion was bubbling with affirmations and wisdom that helped sustain Lisa Price’s more than 25-year growth and domination of the beauty industry. Lisa shared how she was able to manage the challenges of being a boss, wife, mother, and daughter all while keeping her “hobby”, turned multimillion-dollar company, a household name. Her story was a “getting it done” inspiration!

 

The WOW moment . . .

MBDA and NMSDC partnered to bring enterprising women together to provide greater access to information but what was witnessed exceeded expectations.  We saw first-hand what happens when visionaries and leaders get together . . . they create their own pathways to success!  Following the first installation of the virtual series, attendees created a “fan-generated” social media group on Facebook to continue the conversation, network, and share best practices.  This is the manifestation of the vision for MBDA’s Enterprising Women of Color Initiative.  We are honored to be a bridge to connect women entrepreneurs to a community of wealth-building resources.

 

Don’t miss a moment! Register NOW for the virtual series.  Subscribe to the EWOC mailing list at www.MBDA.gov and follow us on Twitter and Facebook @ USMBDA. 

Now is the time to INVEST IN YOU.  Let’s dream bigger.  Let’s achieve more. Together.

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May
Business

Magic Johnson offering $100 million in loans to minority-owned businesses left out of PPP loans

Magic Johnson offering $100 million in loans to minority-owned businesses left out of PPP loans

May 22, 2020

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Fri, 05/22/2020 – 13:52

With the future of small businesses in urban communities at risk, former National Basketball Association great Magic Johnson has stepped in to offer assistance.

The CEO of Magic Johnson Enterprises collaborated with MBE Capital Partners to offer $100 million in loans to minority- and women-owned companies hurt by stay-at-home orders due to Covid-19. The loans were funded through Johnson’s EquiTrust Life Insurance Company and will be provided through the Small Business Administration’s Paycheck Protection Program. 

“This will allow them to keep their employees and keep their doors open,” Johnson told CNBC’s “Squawk Box” on Tuesday.

Congress set aside $349 billion for PPP funds in April as part of a $2 trillion stimulus package, but the money depleted quickly, forcing another round of aid. New funds include $60 billion set aside for small businesses.

But even with new money available, African-American and Latino-owned businesses have been left out of the new PPP funds due to a lack of relationships with bigger banks. Democratic lawmakers including Sen. Kamala Harris of California have even called on the SBA and Treasury Department to ensure minority-owned businesses are not shut out of aid. 

But with financial help limited, some businesses are in jeopardy of closing for good.

“We have to remember that these businesses have been in urban communities for a long time,” Johnson said. “They’ve been doing great things, and they probably didn’t have a relationship with the banks when the stimulus package went out. So now, we’re able to say, ‘Hey, you can have a relationship with us.’”

“Financially, this has really hurt our community as well as health-wise it’s hurt our community, too,” Johnson added.

Rafael Martinez, CEO of MBE, said the funds would look to help 100,000 businesses in urban communities. Applicants are vetted using the SBA guidelines. Martinez said the application process is now simplified, making “it easier to qualify for these loans.”

“There is a ton of money left,” Martinez said, adding the next stage is to grow work with depository banks to “multiply Earvin’s investment to $1 billion or more.” 

Johnson, 60, who helped the Los Angeles Lakers win five NBA titles through the 1980s, said he was surprised the team applied for a SBA loan and received $4.6 million. The Lakers received criticism for the action, but Johnson praised the team for returning the money.

“They did the right thing,” he said. ”[Lakers owner] Jeanie Buss is a very good owner, and she’s smart, so I’m glad that she returned the money because there is a lot of companies out here who really need that money and she was smart enough to understand that.”

Asked about pro sports leagues returning to action, Johnson echoed what many throughout the industry have said, predicting a restart with “empty stadiums.” But he also supported resumption.

“We need it,” Johnson said. “We thrive on our sports. That’s how we escape our everyday life — is to indulge ourselves in sports. So, we need sports to come back, especially if we’re going to continue to stay home.”

Correction: This story was revised to correct that Sen. Kamala Harris and other Democratic lawmakers want the SBA and Treasury Department to ensure minority-owned businesses are not shut out of aid. 

 

 

Source: CNBC.com

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SBA Regional Administrator Ashley D. Bell & Rapper, Entrepreneur Tip “T.I.” Harris Reached over 100,000 Entrepreneurs Across the South

SBA Regional Administrator Ashley D. Bell & Rapper, Entrepreneur Tip “T.I.” Harris Reached over 100,000 Entrepreneurs Across the South

May 22, 2020

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Fri, 05/22/2020 – 13:41

Goal was met in reaching 100k minority entrepreneurs to discuss COVID-19 Recovery opportunities

 

ATLANTA – Yesterday evening, May 20th at 6:00 p.m. ET, Ashley D. Bell, SBA Regional Administrator and Entrepreneurship Policy Advisor for the White House Opportunity & Revitalization Council and Tip “T.I.” Harris, rapper, entertainer, and entrepreneur hosted a successful call for entrepreneurs across the South. The call addressed opportunities for recovery for historically distressed communities which have been disproportionately impacted by COVID-19. They successfully reached over 109,000 callers last night and had a reach of millions via social media outlets.

Tip “T.I.” Harris says, “This call was important to do because I believe it’s critical for us to be informed and get better educated on what we can do, how to do it and where to go to get it done, especially during times of crisis.  I simply did what I do best and that is connect the people with the information.”

The audience on the call received a great deal of information including hearing from local and state elected officials representing their constituents, lenders and experts in the financial fields including Eddie George, Wealth Management Specialist and retired NFL player. John Hope Bryant, Founder & CEO of Operation Hope moderated a conversation with chamber leaders, church leadership and non-profits to discuss the importance of these pillars on our communities and the importance of access to recovery capital for them. Entrepreneurs and small business counselors talked about their tickets to success.

“50% of black business owners have 0-10 days of working capital, but do not have access to traditional banking facilities. Without this critical link to funding and opportunities and amidst the COVID-19 crisis, an entire generation of minority entrepreneurs could be lost,” says Ashley D. Bell, SBA Regional Administrator. “Our goal with 100,000 Strong is to organically reach entrepreneurs throughout the underserved communities of the South by working with the great support of speakers we had on this call.”

 

Please coordinate media interviews and for a complete list of speakers, please contact Lola Kress, SBA Regional Communications Director, (404) 330-4737 or lola.kress@sba.gov@sba.gov 

About the U.S. Small Business Administration

The U.S. Small Business Administration makes the American dream of business ownership a reality. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.

Official Press Release

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26

Mar
Business

Spotlight on Commerce: Gabriela Morales, Senior Business Development Specialist

Spotlight on Commerce: Gabriela Morales, Senior Business Development Specialist

March 26, 2020

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Thu, 03/26/2020 – 12:53

Guest blog post by Gabriela Morales, Senior Business Development Specialist, Minority Business Development Administration (MBDA)

I am excited to have the opportunity to be featured during Women’s History Month. 

I am a Senior Business Development Specialist at the Commerce Department’s Minority Business Development Agency.  My job is to ensure minority-owned firms have adequate skills, tools, resources, and training to sell their products and services globally. Knowing there are 11 million Minority Business Enterprises (MBEs) nationwide, I come to work every day with a sense of urgency to make a difference and move the needle for business owners who are ready to expand to global markets.   

My job and our client approach is ever-evolving as businesses and business trends continue to change from day-to-day. This part of the job is the most fulfilling as it makes it interesting and provides a constant push for me to develop an innovative, solutions-oriented approach to accomplish the MBDA mission. There is, however, a constant facet of the job, which is a keen sense of duty and civil service to my country. That, and a sound work ethic, is what I have learned since my early days from my strongest nucleus, my family.

Unlike most people, I was raised by my grandmother. She was not only an extraordinary role model in my life, but her legacy continues to drive me today and serve as a positive impact in my life. Although small in physique, she was grand in spirit with an incomparable character. She instilled in me a great sense of duty and to seek purpose in life. She ensured that the little I had was shared with others and encouraged me to seek ways to stop unfair treatment of others and to work towards contributing to the betterment of this world and develop an ability to inspire others to do the same. And yes, she also prepared me for the realities I’d face being a woman in a gender-biased world.

Given that I was fortunate to learn these valuable life-skills at an early age and have had the ability to put this to practice in my professional life, I purposefully continue to pay it forward. I do so by encouraging other women to continue to achieve their goals and break stereotypes and help those women that have not been given a level playing field.

In particular, I have mentored Latinas who have applied to the Georgetown Global Executive Masters in Business Administration Program and have coached them on how to present their personal statements, assisted with drafting their biographies and advising them on the best ways to highlight their accomplishments. By being graduate of this program myself, I pass on my knowledge and experience in navigating this arduous process.

My advice for young women seeking to develop their professional careers in business and STEM-related jobs is to always think outside of the box. To know that they have the power to create the new normal and that no stereotype defines them. And also to have fun while doing it.

Ed. note: This post is part of the Spotlight on Commerce series highlighting the contributions of Department of Commerce women during Women’s History Month.

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