JACKSON, Miss.–Hope Enterprise Corporation, an affiliate of Hope Credit Union, has announced a major commitment from Goldman Sachs’ 10,000 Small Businesses initiative of up to $130 million as part of a partnership with seven cities and nine historically Black colleges and universities (HBCUs) to launch the Deep South Economic Mobility Collaborative (DSEMC).
“Formed to stabilize and strengthen businesses and communities devastated by the economic crisis, DSEMC is an innovative collaborative that invests in the power of small businesses and entrepreneurs in the Deep South, particularly those from underserved and under-resourced communities,” explained Hope Enterprise Corp.
According to the organizations, DSEMC will tap the expertise and capabilities of Hope Enterprise Corporation, Goldman Sachs 10,000 Small Businesses, institutions of higher learning and cities in a “unique way to provide access to financing, business education classes, and business support services, leveraging support from the private, public and nonprofit sectors.”
The Focus
The comprehensive support focuses on stabilizing and strengthening small businesses, and bolstering employment in a region characterized by deep, entrenched poverty and racial disparities, Hope Enterprise Corp. added.
“For centuries, racism and economic inequality has thwarted human and economic potential in the Deep South, but our story doesn’t end there,” said HOPE CEO Bill Bynum. “Equipped with opportunity and the right tools, people of this region can accomplish anything. Fueled by their resilience, and harnessing the collective resources of DSEMC, together we will knock down the barriers facing underserved businesses and communities in a way that has never been done before. The collaborative will help build a more inclusive economy that will yield benefits now and for future generations.”
While the DSEMC is open to all small businesses, the impact of the pandemic and economic crisis has disproportionately harmed communities of color, the organizations said. Hope Enterprise cited recent research that showed between February and mid-April of 2020, 41% of Black businesses had permanently closed due to the impact of COVID-19, compared to 17% of white-owned businesses. Furthermore, the value of Black businesses in the Deep South is lower than in any other part of the country, underscoring the urgent need for solutions in a region with the highest percentage of Black residents, Hope Enterprise noted.
‘Crucial Role’
“Given the crucial role Black small businesses play in their communities, it is incredibly important that we act urgently to narrow capital gaps they face,” said Goldman Sachs Managing Director and Head of the Urban Investment Group Margaret Chinwe Anadu. “By expanding our long-standing partnership with HOPE and working alongside such important institutions as our public sector and HBCU partners, we can collectively create stronger, more inclusive communities while creating a model that can be replicated across the country.”
Through the collaborative, Hope Enterprise said each partner is bringing unique capabilities and years of experience, and all are passionate about promoting economic opportunity in their communities. Participating municipalities are Birmingham and Montgomery in Alabama; Little Rock, Ark.; Baton Rouge and New Orleans in Louisiana; Jackson, Miss., and Memphis, Tenn.
Participating HBCUs are Alabama State University, Miles College, Philander Smith College, Southern University and A&M College, Xavier University, Dillard University, Jackson State University, Tougaloo College, and LeMoyne-Owen College.
The Projections
Projections call for the DSEMC to serve 4,000-5,000 businesses and support 30,000 employees and their family members while improving conditions in Deep South communities to further Black economic mobility.
For more info: www.hopecu.org/mobility.