While admitting that inflation “is still too high,” Vice President Kamala Harris thinks the economy has a bustling future. Especially if minority owned businesses increase in number and size.
“After a year of record growth, our economy is slowing down, but our nation’s economic outlook remains strong,” Harris said while delivering the keynote address of the Economic Opportunity Coalition Event in Brooklyn, New York on July 28, 2022.
“We have near record-low unemployment, we have a strong job market, and consumer spending is continuing to grow.That said, we know there is still more work to be done. Inflation is still too high, and lowering costs remain a top priority of our administration.”
Harris was joined by Isabel Guzman, administrator of our Small Business Administration, Isabel Guzman, and Deputy Secretary of the Department of Commerce, Don Graves.
“America is a nation powered by the ambition and the aspiration of her people. The ambition and the aspiration to turn dreams into reality, including the aspiration and dream to start a business, to own a home, to get an education.That is the energy and the ambition that has always been a driver of America moving forward. It creates jobs, it sparks innovation, it expands the economy, and it makes our nation more competitive,” Harris said.
“But achieving that success requires a number of very specific things. And, it requires access to capital. For what? Well, for example, to buy inventory, to make a down payment, to hire employees. And it requires access to financial services — services like checking and savings accounts, home and auto loans, financial education and advice.
“And what we know is not everyone in our nation has equal access to this essential support.”
The vice president shared the fact that Black entrepreneurs are three times more likely to report they did not apply for a loan for fear of being turned away by a bank.
“That fear being based on the stories and the experiences of their family, friends, and neighbors,” she said.
“Black and Latino homeowners are rejected by traditional financial institutions at a higher rate when applying for home loans. And this is the case even when they have credit profiles that are similar to other applicants.”
Harris saluted community lenders, saying they are “uniquely positioned to fill the gaps that traditional banks either cannot or will not address.”
The folks who run these institutions — many of whom I’ve met and some of who are here — often work and live in the very community that they serve. They see clearly their community’s needs and its challenges. They understand their community.
“They also then see their community’s strengths and its opportunities. And when they make a loan, they then see firsthand the positive impact of that loan.”
Over 20 private sector organizations, representing large consumer banks and investment firms, technology companies and philanthropic interests, attended the conference.
“These organizations [and the Biden administration], will invest tens of billions of dollars to provide capital to community lenders; to support entrepreneurship, in particular for women-owned and minority-owned businesses; and to expand access to financial services; and create affordable housing and protect affordable housing,” Harris announced.
“You know, these days, we talk a lot about the economy. Well, let us understand: We all do better as a nation when all our communities do better. It’s that old saying about ‘the rising tide lifts all ships.’ And so that is the spirit with which we do this work.
“The mission of our coalition and the mission of our administration is to match potential with opportunity in every community across our nation.”
