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Minorities Continue to Face Uphill Battle in Lending and Insurance – Ground Report

While most of America might not recognize it, minority groups face an uphill battle when it comes to obtaining important resources. As a result, they often find it difficult to overcome the circumstances they were born into. One specific area in which this is becoming evident involves financial services like insurance and lending.

DISCRIMINATORY PRACTICES HOLDING MINORITIES BACK

While there are still instances of extreme discrimination in today’s society, most of it flies under the radar and is very subtle in nature. Unless you’re a victim of the discrimination – or actively looking for it – you probably won’t see it. This is definitely true when it comes to car insurance.

Just a couple of years ago, Consumer Federation of America (CFA) found that major insurers charge good drivers 70 percent more in predominantly African American zip codes than in predominantly white zip codes. For perspective, that’s roughly $1,060 compared to $622.

“These findings suggest a troubling pattern of high rates in African American communities regardless of driver history,” Tom Feltner, Director of Financial Services at CFA, said at the time the report was released. “We are not rushing to judgment about why this happens, but it is urgent that regulators, lawmakers, and the industry take a hard look at these findings and address the impact of high auto insurance prices on drivers living in predominantly African American communities.”

The CFA research isn’t an isolated study. Pro Public and Consumer Reports also ran a similar study and got the same results (though with a less dramatic variance). Their research showed that insurers charge as much as 30 percent more to drivers in neighborhoods that have a dominant minority population.

In addition to insurance, the data shows that minorities also face an uphill battle when it comes to obtaining capital for the purposes of starting or growing a business. While it’s difficult for any entrepreneur to gain access to capital, the Small Business Administration (SBA) has conducted research that shows minority-owned businesses struggle disproportionately when trying to obtain capital.

“Minority business owners often face daunting obstacles when it comes to traditional credit markets,” Small Business Loans Co admits. “The study concluded that minority-owned small businesses require targeted loan programs in order to provide a level playing field in the realm of entrepreneurship and small business development.”

Most surprisingly, independent research also shows that working class blacks have a tougher time getting approved for mortgages. According to the annual mortgage lending study by the Pittsburgh Community Reinvestment Group (PCRG), the odds of a working class black getting rejected for a mortgage loan is roughly two times greater than a white working-class individual. In total, 46 percent of all mortgage loan applications submitted by African Americans in 2015 were denied.

The exact reasons for this disparity is still being studied – and much has to do with a shortage of cash to close and poor credit – but experts hypothesize that it has to do with high unemployment rates in black communities, as well as the income disparity between the black and white populations.

WHEN WILL THE PLAYING FIELD BE LEVELED?

From the outside, it’s easy to feel as if the playing field has been leveled for minority groups in this country. However, when you study the raw data and look at the numbers gathered in research reports, it becomes clear that we still have a long way to go as a country. The first step is for people to acknowledge that these disparities and discrepancies exist. The second step is to start moving in the right direction by closing the gaps that unjustly hold minorities down.

Source: Minorities Continue to Face Uphill Battle in Lending and Insurance – Ground Report

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Black Wall Street | South Florida Times

Blacks being taken to the Brady Theater during the 1921 Tulsa Race Riot. PHOTO COURTESY OF COMMUNIQUE NEW ENGLAND By DAPHNE TAYLOR The History: “Greenwood”…

Tulsa, Okla. 1921

PART 1

TULSA, Okla. – Only time will tell if there will be another section of town in the USA like the neighborhood of Greenwood in Tulsa, Oklahoma. Thus far, as history would have it, there has yet to be a town to duplicate it. As one of the most prominent concentrations of African-American businesses in the United States during the early 20th century, it was popularly known as America’s “Black Wall Street” until the infamous Tulsa race riot of 1921, in which white residents massacred hundreds of black residents and razed the neighborhood within hours. The riot was one of the most devastating massacres in the history of U.S. race relations, taking with it the distinction of a town with more black businesses than ever before or since.

But the poignant question is “how” did this happen? There are two considerations to muse over: How did Greenwood become so prosperous, and how, on a fateful day in 1921, did it all go up in smoke?  Continue…..

Source: Black Wall Street | South Florida Times

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Pioneering Economic Vision

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In this groundbreaking book, the Architect of Inclusive Competitiveness, Innovation Economy leader, civil rights advocate and former NFL athlete, Johnathan M. Holifield shines a bright light on shifting demographic trends in the United States and the dramatic impact this will have on our economic future: the potential pitfalls as well as the extraordinary opportunities for shared socio-economic prosperity.

Although the economic narrative of the 20th century served America well, it will not  indeed, it cannot  meet the needs of the 21st century. Making the compelling case for sowing new and inclusive innovation systems, rather than merely collections of disjointed programs, in communities throughout the U.S., this book lays out an exciting way forward for America to reap the benefits of the future economy.

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Pioneering Economic Vision

 

 

 

 

 

In this groundbreaking book, the Architect of Inclusive Competitiveness, Innovation Economy leader, civil rights advocate and former NFL athlete, Johnathan M. Holifield shines a bright light on shifting demographic trends in the United States and the dramatic impact this will have on our economic future: the potential pitfalls as well as the extraordinary opportunities for shared socio-economic prosperity.
Although the economic narrative of the 20th century served America well, it will not – indeed, it cannot – meet the needs of the 21st century. Making the compelling case for sowing new and inclusive innovation systems, rather than merely collections of disjointed programs, in communities throughout the U.S., this book lays out an exciting way forward for America to reap the benefits of the future economy.

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Diversity Awards Recognize Women in Tech

“Women in the technology industry face many unique challenges that are often beyond their control,” says Dennis Kennedy, founder and chairman of the National Diversity Council. This statement could not be timelier, as The Guardian newspaper has reported that ‘from Elon Musk to Tim Cook, tech leaders hardly follow women on Twitter, and the heads of… Continue reading

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Small Businesses by Women, Minorities, Veterans Get $75M

Small Businesses by Women, Minorities, Veterans Get $75M

Small businesses play a critical role in creating inclusive economic growth, but too few women, diverse, and veteran entrepreneurs are getting the tools and resources they need to grow. With small businesses growing fastest among people of color, particularly Latinas and African American women, it is essential to help them get started and growing. When small…

.repubhubembed{display:none;}Small businesses play a critical role in creating inclusive economic growth, but too few women, diverse, and veteran entrepreneurs are getting the tools and resources they need to grow. With small businesses growing fastest among people of color, particularly Latinas and African American women, it is essential to help them get started and growing. When small…

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Women Leaders Are Redefining Business – On HER Terms | The Huffington Post

Source: Women Leaders Are Redefining Business – On HER Terms | The Huffington Post

To ensure the success of women and girls is to ensure that they attain literacy and self-confidence in financial matters big and small. And it’s happening! The International Day Of The Girl was celebrated in early October; Canadians are celebrating Financial Literacy this November.

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5 Organizations Helping Minority Startup Founders Succeed

Several organizations have emerged as leaders in the effort to help minority entrepreneurs in the United States.

From the White House’s Tech Inclusion Pledge to Apple’s and Google’s annual diversity reports, players across the tech world have been expressing concern about the industry’s infamous diversity problem.

Source: 5 Organizations Helping Minority Startup Founders Succeed

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