“We have to make sure we extend our arms and get out there and tell people what they need to know to start achieving that generational wealth.”is highlighting the theme with special discussions about sustaining and expanding Black firms. Based in Harlem, Carver is one of the largest Black-run financial institutions in the U.S., celebrating its 75th anniversary in 2023. The bank is named after George Washington Carver and trades on the NASDAQ. Pugh was named CEO in 2012.
Black businesses generated $206 billion in annual revenue and supported 3.56 million U.S. jobs in the last decade, according to the non-profit. However, though Black people comprise 14.7% of the U.S. population, the community represents 12.4% of sole proprietorship and only 2.4% of employer businesses. Brookings said the stats show “disparities” that hold back Black entrepreneurs and “restrict economic opportunities for entire communities, which in turn impacts local prosperity.
IT'S YOUR MONEY: Carver Federal Savings CEO Michael Pugh advises Black business owners to put themselves on payroll, which could help with taxes.Pugh suggests owners tap into local Community Development Financial Institutions that receive money from the Treasury Department’s CDFI Fund. The CDFI fund started in
and has grown to over $7.4 billion in grants awarded to eligible institutions like Carver Federal. The fund aims to promote economic activity and help support small businesses, especially during economic turmoil, by offering favorable, non-debt-punishing loans.. Rising rates can negatively impact small businesses, especially Black firms, that lack capital because it can pressure margins, threatening sustainability. “It’s a matter we’ll all have to pay close attention to,” Pugh says.
The banking sector is recovering from a crisis following the failure of First Republic Bank in May. JPMorgan Chase eventually