Category Archives: Finance

Diversity Capital and NAACP Collaborate to Finance and Advise Minority Businesses

Diversity Capital and NAACP announces a joint venture to finance and advise Minority Business Enterprises

Diversity Capital Company, LLC (DiversityCapCo), a subsidiary of NexTier Companies, LLC, and the National Association of the Advancement of Colored People, Inc. (NAACP) have announced the formation of a new economic empowerment platform powered by DiversityCapCo.

With economic self-sufficiency at the forefront of every discussion that addresses economic parity, the NACCP and DiversityCapCo have decided to collaborate to provide financing and technical assistance to support the minority business community.

The parties have agreed to work together to operationalize the economic empowerment platform powered by DiversityCapCo.  The effort is consistent with the NAACP mission and addresses the short-, medium- and long-term financing and advisory needs of the many entrepreneurs in the NAACP ecosystem.  The goal is to deploy between $500 million to $1 billion over the next five to seven years in the minority business community by developing and staffing an outreach campaign in the largest 25 cities, and surrounding regions, in the United States in collaboration with the NAACP field offices.

Derrick Johnson, the President and Chief Executive Officer of the NAACP stated, “Our effort is one, among a number of critical elements, that will support the survival of the minority business community.”  The NAACP and DiversityCapCo teams will work closely to leverage their respective C-suite access to secure funding to support the various funding vehicles within the economic empowerment platform powered by DiversityCapCo.

Mr. Lawrence C. Manson, Jr., Chairman and Chief Executive Officer of DiversityCapCo, stated that “the company was formed to supplement the urgent need for financing for the minority business community while serving as the engine for the economic empowerment platform powered by DiversityCapCo.”

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About Diversity Capital Company

DiversityCapCo was founded in 2020 as a finance company exclusively dedicated to the minority business community.  Our mission is to expand access to capital and critical advice necessary to assure the survival, stabilization and success of the minority business community.

About NAACP

The NAACP, founded in 1909 in response to the ongoing violence against Black people around the country, is the largest and most pre-eminent civil rights organization in the United States. We have over 2,200 units and branches across the country, along with well over two million activists. Our mission is to secure the political, educational, social, and economic equality of rights in order to eliminate race-based discrimination and ensure the health and well-being of all persons.

Source: NAACP



Partnership to Assist Minority Businesses with PPP Funding

The National Minority Supplier Development Council, Inc. (NMSDC) recently announced the establishment of a new partnership between their Business Consortium Fund (BCF) and Midwest BankCentre to assist certified Minority Business Enterprises (MBEs) with funding access through the Small Business Administration’s Paycheck Protection Program.

Details about how to access funding are available online by visiting BCF’s website at www.bcfcapital.com/ppp-disclosure.

On May 28, 2020, the U.S. Small Business Administration (SBA), in consultation with the U.S. Treasury Department, announced that it is setting aside $10 billion of Round 2 PPP funding to be lent exclusively by Community Development Financial Institutions (CDFIs). CDFIs work to expand economic opportunity in low-income communities by providing access to financial products and services for local residents and businesses.

NMSDC recently surveyed its certified MBEs and learned that as of two weeks ago, more than 60% of those surveyed had not yet received their funding, leading to frustration and disillusionment about the prospect of receiving PPP support.

“We have been thoroughly investigating a range of options for helping MBEs secure the much-needed PPP funding,” said Adrienne Trimble, NMSDC President and CEO. “After receiving the survey results, I knew it was time for NMSDC to take care of our own and so I began making calls.”

Among Trimble’s first calls was to Dave Steward, Chairman and Founder of World Wide Technology (www.wwt.com), one of the largest African American-owned businesses in the United States and the largest NMSDC-certified MBE. World Wide Technology was among the first certified MBEs to receive funding from NMSDC’s BCF and the first to repay their loan.

“Dave quickly connected us with Orvin T. Kimbrough, Chairman and CEO of Midwest BankCentre (MBC),” Trimble continued. “Our organizations share similar passions and philosophies about supporting minority business, which makes it especially exciting to launch this partnership between NMSDC’s Business Consortium Fund and the Midwest BankCentre.”

“MBC has a strong commitment to reinvesting in our communities and ensuring we all have the tools to have the best shot at winning,” according to Kimbrough. “This collaboration is even more important given the current economic challenges impacting small business, and to a greater degree, minority-owned businesses.”

“The NMSDC Business Consortium Fund is perfectly positioned to support MBEs in successfully accessing PPP funding. Our staff is trained and ready to work with MBEs on their specific needs when it comes to accessing this critical funding,” noted G. Winston Smith, BCF President and COO. “We have created an efficient application process, and we are eater to work with Midwest BankCentre to break down barriers and facilitate MBE access to the PPP funds.”

How to Receive Assistance | If you are a minority business still in need of PPP funding, please visit www.bcfcapital.com/ppp-disclosure to begin your application process. The SBA has confirmed there is more than $90B remaining in available funding.

About the NMSDC Business Consortium Fund | bcfcapital.com

The National Minority Supplier Development Council Business Consortium Fund, Inc. is a 501 (c) (3) certified, not-for-profit business development group, affiliated with the NMSDC, and certified by the United States Department of the Treasury as a Community Development Financial Institution (CDFI). As America’s most comprehensive financing and consulting support organization exclusively serving NMSDC-certified businesses, the Business Consortium Fund offers loan programs and consulting services serving the needs of minority businesses through the NMSDC network of 23 affiliated regional councils.

Source: The National Minority Supplier Development Council, Inc.

Bank of America’s $1B Commitment to Local Economic Initiatives

Bank of America Announces $1 Billion/4-Year Commitment to Support Economic Opportunity Initiatives

Bank of America has announced that it is making a $1 billion, four-year commitment of additional support to help local communities address economic and racial inequality accelerated by a global pandemic. The programs will be focused on assisting people and communities of color that have experienced a greater impact from the health crisis.

“Underlying economic and social disparities that exist have accelerated and intensified during the global pandemic,” said CEO Brian Moynihan. “The events of the past week have created a sense of true urgency that has arisen across our nation, particularly in view of the racial injustices we have seen in the communities where we work and live. We all need to do more.”

The work builds on economic mobility and workforce development programs Bank of America already supports in local markets, but will sharpen the focus of that work, accelerate the resources, and add a particular emphasis on health services during the pandemic. The announcement is aligned with the company’s commitment to responsible growth for clients, shareholders, employees and communities.

Areas of focus will be:

  • Support to Small Businesses
  • Health
  • Housing
  • Jobs/Training/Reskilling/Upskilling

The programs will be executed through the company’s 90 local U.S. market presidents and non-U.S. country executives to help develop the opportunities to execute on these commitments in areas that include:

  • Virus testing, telemedicine, flu vaccination clinics, and other health services, with a special focus on communities of color.
  • Partnerships with historically black colleges and universities and Hispanic-serving institutions in the United States for hiring, research programs, and other areas of mutual opportunity.
  • Support to minority-owned small businesses, including clients and vendors.
  • Career reskilling/upskilling through partnerships with high schools and community colleges.
  • Operating support and investment for affordable housing/neighborhood revitalization, leveraging our nearly $5 billion in Community Development Banking.
  • Further recruitment and retention of teammates in low-to-moderate-income and disadvantaged communities to build on work the company has already done to serve clients locally.

This work builds on steps the company has already taken, including an additional $100 million to support its nonprofit partners across its communities, and $250 million to assist with lending to the smallest and minority-owned businesses through its support to community development financial and minority depository institutions.


Bank of America
Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 66 million consumer and small business clients with approximately 4,300 retail financial centers, including approximately 3,000 lending centers, 2,700 financial centers with a Consumer Investment Financial Solutions Advisor and approximately 2,100 business centers; approximately 16,900 ATMs; and award-winning digital banking with approximately 39 million active users, including approximately 30 million mobile users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 3 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and approximately 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.

For more Bank of America news, including dividend announcements and other important information, visit the Bank of America newsroom and register for news email alerts.

Source: Bank of America

Paycheck Protection Program Flexibility Act Signed Into Law

H.R.7010 – Paycheck Protection Program Flexibility Act of 2020 (Full Text)

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7010 Enrolled Bill (ENR)]

        H.R.7010

                     One Hundred Sixteenth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

           Begun and held at the City of Washington on Friday,
            the third day of January, two thousand and twenty


                                 An Act


 
  To amend the Small Business Act and the CARES Act to modify certain 
   provisions related to the forgiveness of loans under the paycheck 
 protection program, to allow recipients of loan forgiveness under the 
   paycheck protection program to defer payroll taxes, and for other 
                                purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
    This Act may be cited as the ``Paycheck Protection Program 
Flexibility Act of 2020''.
SEC. 2. MATURITY FOR LOANS WITH REMAINING BALANCE AFTER APPLICATION OF 
FORGIVENESS.
    (a) In General.--Section 7(a)(36)(K)(ii) of the Small Business Act 
(15 U.S.C. 636(a)(36)) is amended by inserting ``minimum maturity of 5 
years and a'' before ``maximum maturity''.
    (b) Effective Date; Applicability.--The amendment made by this 
section shall take effect on the date of the enactment of this Act and 
shall apply to any loan made pursuant to section 7(a)(36) of the Small 
Business Act (15 U.S.C. 636(a)(36)) on or after such date. Nothing in 
this Act, the CARES Act (Public Law 116-136), or the Paycheck 
Protection Program and Health Care Enhancement Act (Public Law 116-139) 
shall be construed to prohibit lenders and borrowers from mutually 
agreeing to modify the maturity terms of a covered loan described in 
subparagraph (K) of such section to conform with requirements of this 
section.
SEC. 3. AMENDMENTS TO PAYCHECK PROTECTION PROGRAM LOAN FORGIVENESS.
    (a) Extension of Covered Period.--Section 7(a)(36)(A)(iii) of the 
Small Business Act (15 U.S.C. 636(a)(36)(A)(iii)) is amended by 
striking ``June 30, 2020'' and inserting ``December 31, 2020''.
    (b) Forgiveness.--Section 1106 of the CARES Act (Public Law 116-
136) is amended--
        (1) in subsection (a), by striking paragraph (3) and inserting 
    the following:
        ``(3) the term `covered period' means, subject to subsection 
    (l), the period beginning on the date of the origination of a 
    covered loan and ending the earlier of--
            ``(A) the date that is 24 weeks after such date of 
        origination; or
            ``(B) December 31, 2020;'';
        (2) in subsection (d)--
            (A) in paragraph (5)(B), by striking ``June 30, 2020'' each 
        place it appears and inserting ``December 31, 2020''; and
            (B) by adding at the end the following new paragraphs:
        ``(7) Exemption based on employee availability.--During the 
    period beginning on February 15, 2020, and ending on December 31, 
    2020, the amount of loan forgiveness under this section shall be 
    determined without regard to a proportional reduction in the number 
    of full-time equivalent employees if an eligible recipient, in good 
    faith--
            ``(A) is able to document--
                ``(i) an inability to rehire individuals who were 
            employees of the eligible recipient on February 15, 2020; 
            and
                ``(ii) an inability to hire similarly qualified 
            employees for unfilled positions on or before December 31, 
            2020; or
            ``(B) is able to document an inability to return to the 
        same level of business activity as such business was operating 
        at before February 15, 2020, due to compliance with 
        requirements established or guidance issued by the Secretary of 
        Health and Human Services, the Director of the Centers for 
        Disease Control and Prevention, or the Occupational Safety and 
        Health Administration during the period beginning on March 1, 
        2020, and ending December 31, 2020, related to the maintenance 
        of standards for sanitation, social distancing, or any other 
        worker or customer safety requirement related to COVID-19.
        ``(8) Limitation on forgiveness.--To receive loan forgiveness 
    under this section, an eligible recipient shall use at least 60 
    percent of the covered loan amount for payroll costs, and may use 
    up to 40 percent of such amount for any payment of interest on any 
    covered mortgage obligation (which shall not include any prepayment 
    of or payment of principal on a covered mortgage obligation), any 
    payment on any covered rent obligation, or any covered utility 
    payment.''; and
        (3) by adding at the end the following new subsection:
    ``(l) Application to Certain Eligible Recipients.--An eligible 
recipient that received a covered loan before the date of enactment of 
this subsection may elect for the covered period applicable to such 
covered loan to end on the date that is 8 weeks after the date of the 
origination of such covered loan.''.
    (c) Extension of Deferral Period.--Section 7(a)(36)(M) of the Small 
Business Act (15 U.S.C. 636(a)(36)(M)) is amended--
        (1) in clause (ii)(II), by striking ``for a period of not less 
    than 6 months, including payment of principal, interest, and fees, 
    and not more than 1 year.'' and inserting the following: ``, 
    including payment of principal, interest, and fees, until the date 
    on which the amount of forgiveness determined under section 1106 of 
    the CARES Act is remitted to the lender.'';
        (2) in clause (iii), by striking ``for a period of not less 
    than 6 months, including payment of principal, interest, and fees, 
    and not more than 1 year.'' and inserting the following: ``, 
    including payment of principal, interest, and fees, until the date 
    on which the amount of forgiveness determined under section 1106 of 
    the CARES Act is remitted to the lender.''; and
        (3) by adding at the end the following new clause:
                ``(v) Rule of construction.--If an eligible recipient 
            fails to apply for forgiveness of a covered loan within 10 
            months after the last day of the covered period defined in 
            section 1106(a) of the CARES Act, such eligible recipient 
            shall make payments of principal, interest, and fees on 
            such covered loan beginning on the day that is not earlier 
            than the date that is 10 months after the last day of such 
            covered period.''.
    (d) Effective Date; Applicability.--The amendments made by this 
section shall be effective as if included in the CARES Act (Public Law 
116-136) and shall apply to any loan made pursuant to section 7(a)(36) 
of the Small Business Act (15 U.S.C. 636(a)(36)) or section 1109 of the 
CARES Act.
SEC. 4. DELAY OF PAYMENT OF EMPLOYER PAYROLL TAXES.
    (a) In General.--Section 2302(a) of the CARES Act (Public Law 116-
136) is amended by striking paragraph (3).
    (b) Effective Date; Applicability.--The amendments made by this 
section shall be effective as if included in the CARES Act (Public Law 
116-136) and shall apply to any loan made pursuant to section 7(a)(36) 
of the Small Business Act (15 U.S.C. 636(a)(36)) or section 1109 of the 
CARES Act.
SEC. 5. EMERGENCY DESIGNATION.
    (a) In General.--This Act is designated as an emergency requirement 
pursuant to section 4(g) of the Statutory Pay-As-You-Go Act of 2010 (2 
U.S.C. 933(g)).
    (b) Designation in Senate.--In the Senate, this Act is designated 
as an emergency requirement pursuant to section 4112(a) of H. Con. Res. 
71 (115th Congress), the concurrent resolution on the budget for fiscal 
year 2018.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.

Goldman Sachs Establishes $10 Million Fund for Racial Equity

FOR IMMEDIATE RELEASE: NEW YORK – Goldman Sachs today announced it has created the Goldman Sachs Fund for Racial Equity to support the vital work of leading organizations addressing racial injustice, structural inequity and economic disparity. The fund will be launched with $10 million from Goldman Sachs Gives, a donor-advised fund that allows the firm and its current and retired senior employees to direct grants to support underserved communities around the world.

“We must stand up and support organizations dedicated to the fight for a more just and equitable society,” said David M. Solomon, Chairman and Chief Executive Officer. “To honor the legacies of George Floyd, Breonna Taylor and Ahmaud Arbery, we must all commit to help address the damage of generations of racism.”

The fund is in addition to the firm’s COVID-19 relief and recovery efforts, including its $30 million COVID-19 Relief Fund and $525 million commitment to small businesses, Goldman Sachs has deployed capital to communities in need around the world, with significant funds designated toward supporting communities of color, who continue to be disproportionately impacted by the pandemic.

Goldman Sachs employees donating to Fund for Racial Equity recipient organizations will have their contributions matched by the firm dollar for dollar, and donations $25 and under will be matched three to one.

The Goldman Sachs Group, Inc. is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial centers around the world.

Source: Goldman Sachs