Latest / The SmallBizChat with Melinda Emerson / Uplifting Minority Businesses with Renée Johnson

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Uplifting Minority Businesses with Renée Johnson · The SmallBizChat with Melinda Emerson

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  And until we are all united in this fight together as one voice, letting people know that
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  this is this systemic issue, it's not gonna change, and we cannot let people stop thinking
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  about it and moving on to the next issue because it's only gonna get worse years from
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  now.
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  And we're only gonna see more women needing more assistance to start their businesses.
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  2, 1, 0, ignition, liftoff.
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  Ending small business failure.
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  Welcome to the Small Biz Chat podcast with a number 1 small business expert, Melinda
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  Emerson.
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  Melinda's goal is to end small this failure, and she'll give you the information you need to
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  succeed and live the life you dream of.
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  Now here's the small biz lady herself.
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  Melinda Emerson.
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  Hi, everybody.
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  I'm Melinda Emerson's small biz lady.
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  America's number one small business expert.
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  And I'm so excited to welcome you to another episode of the small fish chat podcast.
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  We have an amazing show for you tonight.
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  The small business chat podcast is a peer to peer interview show.
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  We're really focused on getting you information to take your business to the next level.
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  Which is why we bring in several guests so that you can learn from multiple different angles.
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  The mission of the small bizhette podcast is to end a small business failure.
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  And we've been doing it for a lot of years, and we're not gonna stop So now at this time, let
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  me introduce my guest.
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  Her name is Renee Johnson.
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  She is an advocate policy maker and innovative strategist.
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  With over 15 years advocating for women of color and politics, policy, entrepreneurship,
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  and leadership.
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  As the co director of reimagined Main Street and senior advisor to public private
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  strategies, Renee Johnson developed innovative strategies that impact small business needs
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  with a focus on access to capital, especially for business owners of color.
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  Renee's tenure includes serving as the train director at the United State of Women and
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  serving as the District of Columbia's Department of Human Services director of
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  legislative policy and a variety of roles.
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  Renee, welcome to the small business podcast.
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  Thank you so much for having me here tonight, Melinda.
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  Truly appreciate it.
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  Alright.
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  So talk to us.
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  I know that you are the co director of the reimagined Wall Street.
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  Excuse me, reimagined Main Street.
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  Well, we gotta reimagine Wall Street too.
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  Right.
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  Right.
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  Wall Street's the problem.
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  We'll get
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  to them later.
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  But tell me what is your initiative.
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  Tell me what it is, how you guys created it, and what is your term goal, you know, with the
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  organization.
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  Yeah.
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  So, you know, at the start of COVID, everyone was just like, what is this?
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  What is COVID?
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  What how does this impact my life?
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  We were seeing people getting sick.
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  Businesses were shutting down.
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  People were, you know, not being good constituents to our partners in the AAPI
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  community.
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  They were being just really racist to to people in Chinatown across the country.
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  If we all really remember, we were like, what is this this coming over to the United States?
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  And we were seeing different from Chinatown, Main streets, Caesar Chavez, ways that were
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  shutting down.
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  And so we did was we were like, we need to make sure that minorities are at the center of
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  recovery because we saw very clearly the beginning when Congress came into action with
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  the PPP, the COVID idle, and all the other relief programs, many minority or small
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  businesses, were not getting funded.
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  So the small businesses and their workers, we wanna make sure that they rebound from the
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  COVID 19 crisis and their communities thrive, right, benefits ripple throughout the economy
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  for everyone.
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  We we are a multi stakeholder cross sector initiative focused on advancing and uplifting
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  innovative solutions with dialogue and data to ensure that these communities Regardless if
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  you're on MOK, Caesar Chavez, Wei, Chinatown, and Main Streets are at that center of
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  recovery.
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  And so reimagine Main Street, we are a project of Public Private Strategies Institute, and our
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  long term goal Making sure we're still at that center of recovery because we're not out of
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  this yet.
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  Right?
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  We don't know if a new variant is coming.
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  We just heard today that there's Delta Omicron.
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  I don't know what kind of transformer that is, but, hey, there's more that may be coming in
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  meets the eye.
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  And we wanna make sure that as we continue on with trying to figure out where we are, that
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  small businesses that are impacted are definitely getting resources help and
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  assistance.
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  So they're not at the beginning of COVID where they were.
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  So I know one of the initiatives that you guys launched was this in black business program.
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  Tell me about that and, you know, how did you fund it and and who did it help?
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  Yeah.
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  So the backing black business say that three times fast.
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  Small Business Grants program is one of our projects, and it was dedicated to ensure black
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  women owned businesses and others nationwide achieve an equitable recovery from the economic
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  impacts of COVID 19.
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  The program awarded $2,000,000 in cash grants.
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  Right?
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  So straight cash, not any kind of like, you know, coupons or you could use this on a wife,
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  you know, no straight cash grants and it ranged from 5000 to $50,000 to more than 200 black
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  women's, well, business owners and entrepreneurs who either started their
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  businesses during the pandemic or who prayerfully and thankfully successfully
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  navigated their businesses through the pandemic.
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  And as we all know, COVID 19 hit Black Women Businesses, across the country very, very hard.
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  And now as signs of recovery are starting to emerge, black women are starting new businesses
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  at record rates, and we recognize power of black women owned businesses.
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  By providing these cash grants, advertising support, and other valuable resources to these
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  women who launch their businesses, or who have made it through, we can collectively fuel the
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  aspirations and boost the trajectory of these 200 black women entrepreneurs across the
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  country.
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  Really excited about this.
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  We just know that this has really impacted in some way someone's life, and we're just excited
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  that we have this opportunity.
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  We worked with Meta who powered this formally known as Facebook, and we are actually going to
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  do another round of $2,000,000 later this year for AAPI small businesses.
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  So there's more to come on that too later.
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  Now when you say PI.
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  Is that Asian American?
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  Is that
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  Agent American.
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  Yes.
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  And I know that this is airing later, but as we're talking, is the day is a 1 year
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  anniversary of the unfortunate incident that happened in Atlanta with the spot incident
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  where 8 workers were, unfortunately, lost their life to, you know, racial biases.
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  And so that's why it's so important that we work together and talk to different communities
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  and uplift these small business owners and their workers to ensure that they're not only
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  safe, but they're provided these resources so that they're communities are able to thrive
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  throughout COVID 19 as well.
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  Good stuff.
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  Good stuff.
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  So let's talk about access to capital because no matter where I go, no matter what
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  conversation I get into when we start talking about what makes small businesses struggle,
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  particularly women and minority businesses, it is this issue of access to capital.
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  And what we know is that 8000 small business loans are turned down every day in America.
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  8000.
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  So what is being done from an advocacy standpoint to figure out some new models for
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  how lending is done because I believe that credit scoring has really become a very
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  punitive thing.
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  For people.
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  And I don't know about you, but most of the people that I know that if boots drop their
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  business, they might have a $5,000,000 business now but they've missed 2 mortgage payments, and
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  that stuff is on their credit for forever.
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  Right?
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  So I just feel like when are we gonna look at some different models?
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  Because I just I have heard of businesses multimillion dollar businesses getting turned
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  down from loans because they say the business owners to personally leverage or because of
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  credit scoring.
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  And what is being done about this to give people you know, greater access to capital.
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  So we can talk about this until we're blue in
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  the face.
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  And, unfortunately, That's what's happening because Dodd Frank, right, is a piece of
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  legislation that happened prior to me going to college, I believe.
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  So that's how long it's been.
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  And if you know Senator Dodd and Senator Frank, that's how long or congressmen, excuse me,
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  that's how long it's been.
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  They actually had an issue of 1071, which is a section within this piece of legislation that
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  actually talked about how small business loans in credit should be sort of like the data
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  collection from banks.
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  And, essentially, we're supposed to, at this point in time, know exactly who is actually
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  getting denied.
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  So whether you're a woman, you're a his man.
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  You are 25.
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  What type of business?
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  All of these demographic points are supposed to be collected.
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  And unfortunately, it's never been implemented.
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  Never been implemented.
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  So we can't even get to how do we create solutions for real, for real, because banks
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  aren't even held to this accountability standard.
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  So 1071, there are many organizations that are working to do the work.
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  There has been rule making now to actually try to push this further.
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  The CFPB is working to to try to to do something with this now and implement it.
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  So there's some sort of standard here now.
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  And then also going back to the PPP, the paycheck protection plan that came out, as we
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  all know, there wasn't any data collection at first.
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  Right?
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  So we didn't know who was getting it, but we knew who was getting it.
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  Right?
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  And so once it was exposed, Congress came back and was like, oh, okay.
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  Well, now we'll we'll institute some reporting requirements.
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  And so now banks are required to collect certain data requirements.
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  And then all of a sudden, we had to provide alternative opportunities for those who did not
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  meet specific criteria with normal banking or traditional banks because they actually use 7a.
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  And if you know anything about 7a, Usually, for the most part, statistically did not allow for
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  communities of color to get loans.
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  So if you didn't get a 7 day loan, normally, you weren't gonna get a PPP.
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  So right there institutionally, we have created loopholes, if you will, for minority
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  communities, women businesses to not have access during COVID, right, So right then and
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  there, we see the problem.
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  So we need to fix those stop gaps.
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  Now after we do that, we know that there's a meeting CDF eyes can be financial deposit and
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  tort institutions that are working to assist minority of small businesses There's MDIs.
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  There's black banks out there that want to be able to provide assistance to small business
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  owners of color.
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  So there's there's those opportunities.
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  Well, I wanna stop you right there because I'm in Philadelphia, and I know that there are
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  There's a lot of money in this town, but there's a lot of CBFI's that have policies more
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  stringent than the bank.
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  These people are holding on to their money and not making loans either.
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  Or if they do, you know, frankly, some of their terms are rather draconian, almost like some of
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  the merchant advanced lenders.
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  So that's a problem.
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  That is a problem, but I don't think that's being looked at.
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  And I think there was so much money that was pushed out to the CDFI's.
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  And I think just like every small business development center, is it the same?
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  Every CDFI is not that created equal.
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  Oh, so I think so I think there's some opportunity there to look at what's going on
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  because I think CDFIs, they might deal with a slightly lower credit score, but I I just know
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  people that don't wanna call the CDFI either.
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  Right?
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  So I just put that out there.
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  But the other thing I wanted to ask you about is I know right now there's a lot of focus on
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  black women entrepreneurs, and we know this is because black women are starting businesses at
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  four and a half times.
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  Everyone else.
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  However, I know that there's all these corporations that have made all these pledges.
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  Some of giving out money and help people, and a whole bunch of them just made pledges and
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  haven't done anything.
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  And so what I wanted to ask you was whether or not you think black women are still gonna be
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  the focus of some of these public private philanthropy efforts, you know, over the next 3
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  to 5 years, or do you think this is
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  a, you know, 2 year thing?
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  And we're gonna be out of this business and they're gonna be on to the next thing.
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  As long as I'm out here, I'm gonna be advocating for the next 3 to 5 years, the next
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  20, god willing, and I hope you are too because you know why privilege allows power allows
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  access.
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  And so for those who are able to go into a bank and have the ability and don't have to worry
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  about using credit cards to fund their business.
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  Hey.
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  Great for you.
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  Now come and join this party and this bandwagon and be a voice and echo what issues that we
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  have because, unfortunately, so many in our community have to do that.
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  And until we are all united in this fight together as one voice, letting people know that
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  this is this systemic issue, it's not gonna change, and we cannot let people stop thinking
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  about it and moving on to the next issue because it's only gonna get worse years from
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  now, and we're only gonna see more women needing more assistance to start their
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  businesses.
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  I couldn't agree with you more Alright.
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  My last question for you is what is the best business advice that you have ever received?
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  So this is gonna sound funny.
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  Because my dad is a little funny.
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  There's only one you.
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  Just like there's thousands of toilet paper companies, everybody gotta buy a bowl.
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  So no matter what it is that your business is, there might be another one out there, but
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  there's not a you.
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  So Do you make that business happen?
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  Cause no one could do your business like you.
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  Charmin has competitors, but when you go to the store, guess what you do.
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  You make a decision every time.
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  If Charmin costs a little too much, you may go with their competitor.
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  So make sure your business is dedicated for you because There's only one you.
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  I love it.
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  I love it.
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  Well, thank you so much, Renee Johnson, for being here.
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  I have really enjoyed talking with you and learning more about the work that you're doing.
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  And I'm definitely out here advocating with you alongside you all the way.
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  Renee, what is your favorite podcast?
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  Shaving this plug.
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  You probably didn't know.
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  I have my own podcast, the Rose hour podcast, where we talk about wine.
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  Love it.
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  And I talked to different winemakers from across the world that are small business
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  owners.
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  Check it out today, the Rosier Hour podcast.
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  Love it.
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  Love it.
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  Shame plug.
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  I'm gonna manage it.
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  Alright.
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  What is your favorite business app?
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  My favorite business app.
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  Okay.
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  Right now, it is I'm going to it Asana because it keeps me so organized and I can organize
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  help with people.
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  And I I'm type a.
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  I couldn't have guessed that.
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  Right?
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  Alright.
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  I'm good job.
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  Renee, what's your favorite business book?
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  Going historical, 48 laws of power.
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  That was a good one.
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  That was a good one.
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  And the 50th law of power was actually really good too by 50¢, believe it or not.
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  Thank you guys so much for being here.
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  Thank you again to my guest.
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  If you're working on your digital pivot, be sure to check out Small Buslady University
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  where you can sign up for my latest course social media selling.
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  You can get everything you need to finally start developing and making the money that you
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  deserve online.
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  So go ahead and reserve your spot today at smallbizladyuniversity.com.
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  You know, the mission of smallbiz chat is to end small business failure, and I thank you for
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  allowing me to inform your small business journey once again.
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  And I'll leave you with this.
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  You never lose in business, either you win or you learn.
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  Take care, everybody.
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  Thank you for listening to the small biz chat podcast with Melinda Emerson.
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  For more resources and small business success strategies, visit succeed as your own boss.com.
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  Subscribe to this podcast wherever you listen to podcasts.
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  And join us next Wednesday.