The Small Business Administration has partnered with Milken Institute to increase lending to minority owned businesses. The Partnership for Lending in Underserved Markets (PLUM) initiative will be “designed to develop and test initiatives that will provide capital to minority owned-businesses more effectively, throughout the United States.”
Currently minority business, in particularly black owned businesses are struggling to access credit at a rate far surpassing normal small businesses. Although the rate of growth for these businesses is high, capital and revenue are not matching growth partners. There are various reasons for this, but a large piece clearly is a lack of funds to build and grow resources.
Unfortunately the PLUM partnership does not go into detail about the amount of capital the initiative will help access, but in today’s funding environment, any help for minority owned businesses is welcome.