2022 Black Well-being Final w links for Web 11.29.22 - Flipbook - Page 38
BLACK WELL-BEING REPORT 2022
BLACK FUTURE CO-OP FUND
Black homeowners must contend with the legacy of redlining, mortgage steering, biased appraisals, denied loan applications, higher interest
rates, and more expensive, risk-laden loans. The net effect of higher interest rates, less favorable financial products, and lower assessed values
means we go into more debt for less of a return. In Washington state, the assessor’s office has increased the value of some Black homes, but
for now, the net effect of that means higher property taxes, further decreasing the amount of our disposable income. In Kent, property taxes
increased 12.96%, and in Tukwila 15.14%, the highest increase in King County.101 In most cases, homeownership is the primary way wealth is
passed down.88 The Black Homeownership Initiative has laid out a clear seven point plan to increase Black homeownership in the region.102
Access to business capital
Today Black people make up 12.4% of the U.S., yet in 2019 Black businesses represented 2.3% of all employers, employing 1.3 million
people.103 Often in addition to working a full-time job, many of us own a side business, or two, or three. Nationally, Black folks make up 11.8% of
non-employer businesses.
Business Representation by Race/Ethnicity Group
Race/Ethnicity Group
% Population
% Employer
% Non-employer Business
White
75.3%
83.5%
77.2%
Black
14.0%
2.3%
11.8%
Asian
6.6%
10.1%
7.8%
Latino or Hispanic
18%
6.%
14.7%
Other
7.6%
0.6%
0.5%
Notes: Race groups include those who identify with more than one race.
Source: Brookings Metro. Data for population and employer business are for 2019 (from 2019 ACS and 2020 ABS) and the data for noneemployer firms are for 2018
(most NESD data)
And getting there is no small task. The capital and knowledge needed must be sought out and that takes time, trial, and error — further
complicated by racial bias of the people making decisions. In 2020, 92% of Black business owners reported experiencing a financial challenge.
Black small business owners were also the most likely to experience difficulty accessing credit (53%) and the most likely to tap into personal
funds (74%).104
Banks and lending institutions continue their centuries long racist practices, denying Black loan applications and the capital needed to start
and sustain the businesses we’re building. During the pandemic, paycheck protection program (PPP) loans for Black-owned businesses
were received later and were substantially less than white-owned businesses.105 The PPP system was built on the banking system, which
purposefully underserved the Black community. Black businesses had better chances for financial services with non-mainstream banks.
Although Black businesses were hit particularly hard by the pandemic, there has been a substantial surge of new Black businesses — making
up 26% of all new businesses, which is 9% more than pre-pandemic.106
In Washington state, during testimony for initiatives and legislation around I-200, elected officials pointed to state analysis that demonstrated a
significant decrease in state spending on contracts with minority and women owned businesses and contractors 1998 and 2017.107 Additionally,
the number of certified firms declined by half. If the rate of spending stayed the same as before I-200 was passed, an additional $3.5 billion
would have gone to smaller minority and women owned businesses by 2018.108 We know that this number would be higher over the past
four years. To add to that picture, the Office of Minority and Women Owned Businesses has found that long established firms have reported
significant negative impacts from I-200.109
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