African American banks pivotal as ever for minorities in US

NEW YORK: When she needed capital to expand her business, Ernisha Randolph was just one of countless African Americans to encounter roadblocks despite having no history of financial trouble.

About seven years ago, her catering company, Juanita’s Kitchen, had secured a big government contract that guaranteed revenues for three years. To finance the expansion, she turned to banking giant Wells Fargo.

“I asked them for US$50,000 and when they denied it, I went down to US$25,000,” she recalled in an interview. “I did not get that, either.”

Randolph turned to Oneunited, one of the leading African-american owned banks in the US that have supported minority-owned businesses over the decades.

With credit from Oneunited, Randolph transformed her Miami company into today’s mini-food empire.

The Sweet Butter Hospitality Group includes the restaurant Shuckin & Jivin that now appears better positioned than many other restaurants and small businesses to survive the blow from the coronavirus.

“I am very very grateful for black-owned banks,” Randolph said. “For so long we have been denied loans.”

As the political debate in the US shifts following mass protests in the wake of the killing of George Floyd at the hands of police, the focus is turning to systemic barriers to opportunity for African Americans, including in the banking system.

Banks led or owned by African Americans have long proven a lifeline for America’s black businesses.

The financial groups are based in the heart of urban centers and view banking as part of a larger activist mission that supports the black community by ensuring minorities can access needed capital.

“If you go to another bank, you might see someone talking about a boat loan,” said Teri Williams, president of Oneunited Bank, who said her company’s programmes are more tailored to the black community.

This includes “early pay” that allows consumers to get paid two days early.

“We support Black Lives Matter, we support take a knee, so for us it’s a mission to support our community and that’s the service that we provide,” she said.