fbpx

Equity in Business Ownership Is a Foundation for a Strong Economy for All

Two people stand in front of a wall with the letters "naif" in a modern office space. The person on the left, wearing a headscarf, glasses, and a blue cardigan, holds a document while smiling. The person on the right, wearing glasses and a button-up shirt, stands beside them. They exude confidence in their shared pursuit of business ownership as they smile near two

Table of Contents

Join Our Newsletter
Sign up to receive news, updates, and stories about the impact of inclusive entrepreneurship.

The racial inequities that continue to plague our country are not confined to criminal justice, education, housing, and health; they’re persistent in our economic systems as well. RMMFI has always existed to break down barriers to business ownership, and we recognize that systemic racism continues to prevent many from accessing the individual and collective benefits of the mainstream economy.

Even before COVID-19 hit, longstanding discrimination against the Black community limited opportunities for business ownership. Access to capital is critical for small business growth, and Black individuals have been denied financial support throughout history due to both discrimination by lenders and official government policies. And this problem persists today: 2018 data from the Small Business Credit Survey showed that large banks approved only 29% of loans sought by Black business owners, compared to 60% of those sought by White business owners.

The pandemic has only compounded these disparities. An analysis by the Center for Responsible Lending estimated that as many as 95% of Black-owned businesses were ineligible for the first round of PPP loans because they did not have employees — a reality caused by the systemic barriers that have long stifled their growth. Even larger Black-owned businesses were shut out of the PPP because banks gave preferential treatment to existing clients, despite the fact that their own discriminatory practices are the source of weak banking relationships in the Black community. With fewer resources to weather the shutdown, the number of Black business owners declined by 41% between February and April.

It’s clear the system is not working for everyone. Community Development Financial Institutions (CDFIs) like RMMFI were created as an alternative tool for getting much-needed capital into historically under-resourced communities. But we know that capital is only part of the picture, and without the right support, it can actually be destructive. That’s why RMMFI’s approach has always been to ensure that capital meets capacity. Years of discrimination cannot be erased with a one-time infusion of cash, but long-term investments in people and communities can build economies that are truly equitable and inclusive.

Written by
Recent Posts
A building with a "Hooper Junction Ruby Rose" sign featuring a red rose logo welcomes visitors in both English and Spanish. Below, a sign reads "Cafe & Micro-Bakery." The structure is white with blue, red, and black lettering, reminiscent of designs seen statewide.
RMMFI is now proudly serving entrepreneurs statewide in both English and Spanish! While our initial expansion into rural Colorado focused on Trinidad, Sterling, and the San Luis Valley, our English and Spanish programs are now open to individuals from anywhere in the state.
A group of approximately twenty people stand together in a room, posing for a photo. They're diverse in age and appearance, embodying the need for inclusive entrepreneurial support as they smile warmly at the camera. The room is decorated with a tinsel garland and a wall mural of a blue ski mask.
As part of DOLA’s Community Crime Prevention Initiative (CCPI), RMMFI provided educational programming and business grants to formerly incarcerated entrepreneurs in Northeast and Southeast Colorado.
A two-story red brick building with arched windows on the upper floor. The ground level features large windows and doors, one with a sign reading "Emily's Barbershop, Now Open." A large potted plant and sandwich board sign are placed on the sidewalk in front. Nearby, RMMFI is preparing for an office move downtown.
After 7 years, RMMFI is moving to a new office space in downtown Denver! Our team has expanded significantly over the past several years, and we’re excited to be moving into a new home – appropriately named Space to Grow – that will better serve the needs of our staff and our full community.
Skip to content