Generating Income For Tomorrow is a 501(c)3 nonprofit organization that provides grants to Black owned businesses in low income areas of Kansas City. Investing in Black owned businesses in low income communities is a proven method of increasing the economic prosperity of the community. Unfortunately banks often hinder that prosperity by discriminating against African American and other entrepreneurs of color seeking small business loans. A 2017 study by the National Community Reinvestment Coalition actually found that banks were twice as likely to provide business loans to white applicants than Black ones, and three times as likely to have follow-up meetings with white applicants than more qualified Black ones.
Many African American business owners fund their own businesses due to the lack of capital. This means that most Black-owned businesses are sole proprietors that don’t make enough money to pay employees. Since Black-owned small businesses are likely to hire from the local community, supporting them has been shown to foster the job opportunities people need to achieve financial stability.
Investing in Black-owned small businesses has been shown to be good for the local economy as a whole as well. Since 48 percent of small business purchases are recirculated locally compared to only 14 percent of what’s circulated by chain stores. Supporting Black-owned businesses in turn supports families, employees, and other business owners, as well as attracts community investors who provide banking services, loans, and promote financial literacy--all things that build economic strength.