On average, Black business founders start with approximately $72,000 less in capital compared to their white counterparts, according to a 2020 McKinsey report1. Additionally, Black businesses are almost three times more likely to suffer lower profits due to a lack of access to funding2. To address these issues and recognize Black Business Month, Ally Financial Inc. (NYSE: ALLY) is making a combined $30 million investment to help grow Black-owned businesses and fuel broad-based Black community development.
A $25 million investment in SoLa Impact's recently launched $300 million Black Impact Fund which invests exclusively in Black and Brown communities in major urban markets. SoLa Impact is the 7th fastest-growing minority-led private company and has been recognized as one of the leading urban real-estate platforms in the country.
"Black-owned businesses are the backbone of many communities throughout the country," said Diane Morais, president, Consumer and Commercial Banking at Ally Bank. "To succeed, they need capital and, when it comes to accessing that capital, we know representation matters. Our investments in Fearless Fund and the Black Impact Fund will help develop the next generation of successful Black entrepreneurs, investors and community leaders who will be writing the checks and creating the opportunities. These are important steps to building a healthier and more inclusive economy."
Recognized throughout August, National Black Business Month is devoted to supporting and celebrating Black-owned businesses across the country. Together with Fearless Fund and SoLa Impact, Ally honors that mission not only this month, but all year long by providing the funding and mentorship Black businesses need to succeed.