Tyrone Fenderson, president of Commonwealth National Bank, is among a dozen bankers cited as Best in Black Business exemplars in #BLACKDOLLARSMATTER: State of Black Business, 12th edition by John William Templeton, co-founder of National Black Business Month.
Michael Grant, president of the National Bankers Association, says, "#BLACKDOLLARSMATTER acknowledges the critical role of African-American banks to close the $30 billion credit gap which trims the sails of the 2.6 million African-American businesses. This data-rich resource convinces anyone of the great power of entrepreneurship to reach the goal of economic parity by 2020.”
Templeton unveils Our10Plan: African-American economic strategy during a luncheon Dec. 5 for the National Black Caucus of State Legislators convention in Los Angeles. The strategy sets a goal of reaching ten percent of U.S. GDP comprised of income to black businesses and consumers by 2020, which would double the current $1 trillion aggregate black income to $2 trillion. The current aggregate black income is just six percent of the $17 trillion GDP although African Americans are 11 percent of national population. The 2.6 million African-American firms are nine percent of all U.S. businesses.
Our10Plan would jump start the process by reallocating a portion of the Federal Reserve’s quantitative easing to add capital to African-American banks and deposit fines collected by the Justice Department from predatory lending cases with those institutions.
Only two percent of SBA loans go to African-American businesses, an indication that other institutions are unwilling to meet the credit needs of black firms. The total loans outstanding have fallen by more than half since 2008 although there are 600,000 more blacks in business.
“The biggest math problem in America is that two percent of business loans does not meet the needs of nine percent of American businesses,” said Templeton.