More consumers are supporting Black businesses but the cards are still stacked against them. Here’s why.

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Since the peak of the Great Recession in 2008, SBA loans for Black business owners have declined a whopping 84%, according to an analysis by the Business Journals. These businesses have consistently struggled to get equitable access to funding programs, and the pandemic is only serving to widen those gaps even as the U.S. places a heavier focus on racial equality.

The Business Journals report found that the four largest banks made 91% fewer 7(a) loans to Black businesses in 2019 than they did in 2007. Consumers, meanwhile, are making a concerted effort to patronize these businesses more frequently. The latest Harris Poll measuring consumer sentiment found that the majority of Americans believe it’s important to support these firms and would pay more for items from those stores.

Latest Developments

• Older workers laid off at the start of the pandemic are increasingly turning to entrepreneurship to make ends meet.
• In a new twist for the holiday shopping season, Target is accepting reservations from customers to help them avoid the crowds as part of its safety measures.
• In a positive sign, American Express reports that consumer spending is on the rise, though the tourism and entertainment industries are not benefiting from people spending more. 
• Shopify is teaming up with TikTok to help its merchants advertise on the social media platform popular with younger audiences. 
• Talks for another stimulus package have again stalled as lawmakers failed to come to an agreement. It’s unlikely one will be reached before the Nov. 3 election. 
• While businesses need additional aid, those who already received loans through the Paycheck Protection Program are awaiting guidance on how to get those loans forgiven. I spoke with Kabbage co-founder Kathryn Petralia on how firms can get forgiveness, what other funding sources are available and what Kabbage’s sale to American Express means for business owners. 

Conversations For You

• People are reading more than ever but that isn’t translating into more sales for indie bookstores. Like many of their peers in other industries, owners say the future of their business hangs on how well they do this holiday season and share how they’re preparing.
• Shark Tank investor Barbara Corcoran spoke about how to lead a business with business moguls Gary Vaynerchuk and Adam Grant. Members are chiming in with their own advice.

Resources

• Massachusetts is giving out $50.8 million worth of grants to small businesses. Applications close Nov. 12. 
• Elsewhere in Massachusetts, a development organization is giving grants to low- and moderate-income businesses.
• The deadline for firms in Wenatchee, Chelan and Douglas counties in Washington state to apply for local grants has been extended until Oct. 30.
• Businesses in Connecticut can begin applying for grants of up to $5,000 on Nov. 9.
• Toledo, Ohio, restarted its grant program for small businesses and is accepting a new round of applications.

Something Good

• Looking for a new sweet snack to curb your anxiety? (Asking for a friend…) Real Simple has ranked the most popular Halloween candies in each state.