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 $50,000 and when they denied it, I went down to $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.
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.
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.
Larger mission
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 programs are more tailored to the black community,” she said.
