Small Businesses Accused Of Racial Economic Segregation In FL

National Association Small Business Investment Companies

Brett T. Palmer

President

Washington D.C.   20005

Copy:

Honorable Nydia Velazquez          Honorable Barbara Lee               Honorable Michael Honda         

Chair                                                  Chair                                              Chair

Congressional Hispanic Caucus  Congressional Black Caucus   Congressional Asian Caucus

RE: 

1) Failure of SBIC’s to invest into minority businesses-SBIC Report Card

2) Target Minority Investment Markets:  Arizona, California, Colorado, Florida, Georgia, Louisiana, Maryland, Michigan, New Jersey, New York, Ohio, Pennsylvania,  Texas, Virginia

Dear Mr.  Palmer:

Our prior correspondence sent to you via certified mail has gone unanswered.  It is our hope to engage in a dialogue that will be beneficial to both minority small businesses and Small Business Investment Companies.  This is the highest of priorities for many organizations, including FMCRC.  We are committed to ensure that minority businesses have fair access and investments into their businesses by SBIC’s.

Minorities account for over 40% of all major cities population but average less than 5% contribution to those cities GDP.  This is an economic factor that our communities and nation can no longer afford.  Minority small and medium size businesses are the key to job creation in minority inner cities.  Capital is the fuel to enable these businesses to create jobs that will reduce poverty and unemployment in minority communities.  SBIC’s must play a role in job creation in our communities.   

The Small Business Administration has provided 317 SBIC’s over $8.2 billion of investment at the end of 2009.  The SBIC’s then leverage this tax payer investment with other financial institutions and Wall Street investment to account for over $25 billion of investments into small businesses.  Yet minority businesses account for fewer than 3% of the investments made by SBIC’s. 

Minority businesses can not survive unless this history of lack of access to capital (debt and equity) is reversed.  If our businesses can not survive, then our communities will continue to decay.  This we can not allow to happen any longer.  We will be producing a report that will identify the SBIC’s that are negligent in providing access to their capital. 

FMCRC, along with the National Association of Minority Automobile Dealers, Minority Business RoundTable would like to engage NASBIC to address this issue.  We are requesting a meeting with you to discuss this matter in more detail.  I have also attached a letter inviting your SBIC’s to an Access to Capital Forum.

We appreciate your support and cordially invite you to participate in the Access to Capital Forum.  This Forum will provide your SBIC a valuable source of minority businesses.  We thank you for your consideration on this request.  If there are any questions or concerns, please contact myself at (813) 598-6361.

Cordially,

Al Pina

Chair

Florida Minority Community Reinvestment Coalition

FL HQ: 

HUwww.fmcrc.orgUH
HUpina@fmcrc.orgUH
(813) 598-6361 cell

(941) 284-0688 office
HUadmin@fmcrc.orgUH

2  Attachments: 

Sample Letter Faxed to SBIC’s

FMCRC 8^th Annual Summit-Lets Do Business Florida Save The Date Flyer

CC:

Sean Greene (Associate Administrator for Investment-SBA)

Jesus Chavarria (Publisher, Hispanic Business Magazine)

Damon Lester (President, National Association of Minority Automotive Dealers) Roger Campos (President, Minority Business RoundTable) Ron Frazier (Chairman- BAC Funding Corporation) Joy Bruce (President, Asian American Federation) Reggie Clyne Esq. (Past President, Wilkie D. Ferguson Jr., Bar Association)  Rolando Sanchez-Medina, Esq. (President, Cuban American Bar Association) Glorious J. Johnson (Council Member, City of Jacksonville) Orson Aguilar (Director, Greenlining Institute) Greg B. Macabenta (National Chairman, National Federation of Filipino American Associations) Doug Mayorga (President, Florida Minority Chamber of Commerce)  Dr. Rubio Arnesto (Treasurer, Hispanic Publisher’s Association)

Sample FMCRC Letter TO 225 Targeted SBIC’s

January 26, 2010

TO:  Small Business Investment Company

RE: 

1)      Invitation to Participate in 2010 FMCRC Summit-Access to Capital    Forum-June 7-8^th  Miami Florida

2)      Failure of SBIC’s to invest into minority businesses-FMCRC SBIC   Report Card

3)      Target Minority Investment Markets:  Arizona, California, Colorado, Florida, Georgia, Louisiana, Maryland, Michigan, New Jersey, New York, Ohio, Pennsylvania,  Texas, Virginia

Invited Guest Speakers:  Ms. Donna J. Gambrell (Director-US Treasury, CDFI Fund) Mr. John C. Dugan (Comptroller-OCC) Mr. Sean Greene (Associate Administrator for Investment-SBA) Ms. Ellen W. Lazar (Senior Advisor to the Chairman-Office of the Chairman-FDIC) Mr. Michael A. Blake (Deputy Associate Director-Office of Public Engagement, The White House) Mr. Peter P. Swire (Special Assistant to the President for Economic Policy-The White House) Mr. Paul Hannah (Legal Counsel-Federal Reserve Board of Governors) Mr. David A. Hinson (National Director-Minority Business Development Agency, US Dept. of Commerce)

Dear SBIC:

Minority small and medium size businesses are the key to job creation in minority inner cities.  Capital is the fuel to enable these businesses to create jobs that will reduce poverty and unemployment in minority communities. 

The economic distress of minority communities may be one of the most pressing issues facing minority communities across the United States.  The lack of businesses and jobs fuels not only a crushing cycle of increasing poverty but also crippling social problems, such as drug abuse and crime in our minority communities.  The establishment of a sustainable economic base together with employment opportunities, wealth creation, role models, and improved local infrastructure is critical to the future well-being of minority communities in Florida.  SBIC’s must play a central role in the revitalization of our communities that are in dire economic stress. 

To address this need, the Florida Minority Community Reinvestment Coalition was formed by over 80 minority organizations to empower minorities in the areas of housing, community reinvestment, small business, sustainable neighborhood development and inner city job creation.  At the core of our mission is the creation of a paradigm shift in community reinvestment for minority communities and businesses.  A critical partner in this paradigm shift will be SBIC capital funds and their approach and philosophy as it relates to investments into minority small businesses in both Florida and across the United States.

A Florida-National survey of 2127 minority small business owners showed that Small Business Investment Companies (SBIC) have neglected investment into minority businesses.  The minority business owners graded SBIC’s with an F when asked to grade SBIC on investments into minority businesses.

To address this serious issue, we will be inviting SBIC’s to participate in the 2010 Summit-Access to Capital Forum to provide over 300 minority businesses access and opportunities to SBIC capital sources.  SBIC’s will be the highlighted capital source for the Access to Capital Forum.  The presence and participation of your SBIC will provide access to a key capital source for minority businesses. Access to such key capital sources is the foundation to job creation in minority inner cities.  An exposition area will be provided for all participating SBIC’s to enable participating minority businesses to easily access key SBIC contacts. 

The FMCRC 8^th Annual Summit-Access to Capital will provide SBIC’s an opportunity to interface with over 300 minority business inFlorida and across the United States.  In addition, we are inviting over 100 minority automotive dealers from across the United Statesto participate in this Forum that will provide them access to a key capital source from SBIC’s.

To ensure that the lack of SBIC capital is reversed, FMCRC, along with key national minority business organizations, will develop a website dedicated to monitor SBIC investment into minority businesses.  Included on the website, FMCRC will provide a quarterly SBIC report card that will grade your SBIC on access and actual investments into minority businesses.  This investment report card is currently conducted for financial institutions by both FMCRC and Greenlining Institute.

We appreciate your support and cordially invite you to participate in the Access to Capital Forum.  This Forum will provide your SBIC a valuable source of minority businesses.  We thank you for your consideration on this request.  If there are any questions or concerns, please contact myself at (813) 598-6361.

Cordially,

Al Pina

Chair

Florida Minority Community Reinvestment Coalition

FL HQ: 

www.fmcrc.org
pina@fmcrc.org
(813) 598-6361 cell

(941) 284-0688 office
admin@fmcrc.orgU

1 Attachment:  FMCRC 8^th Annual Summit-Lets Do Business Florida Save The Date Flyer

CC:  Sean Greene (Associate Administrator for Investment-SBA)

Damon Lester (President, National Association of Minority Automotive Dealers) Roger Campos (President, Minority Business RoundTable) Winnie Tang (President- Organization of Chinese Americans, South Florida Chapter) Ron Frazier (Chairman- BAC Funding Corporation) Joy Bruce (President, Asian American Federation) Reggie Clyne Esq. (Past President, Wilkie D. Ferguson Jr., Bar Association)  Rolando Sanchez-Medina, Esq. (President, Cuban American Bar Association) Nydia Menendez, Esq. (Past President, Puerto Rican Bar Association) Glorious J. Johnson (Council Member, City of Jacksonville) Debra Reyes (President, Neighborhood Lending Partners) John Gamboa (Greenlining Institute) Greg B. Macabenta (National Chairman, National Federation of Filipino American Associations) Elaine Black (President-Liberty City Trust) Ron Frazier (Chairman- BAC Funding Corporation)  Raul Espinosa (President- Fairness In Procurement Alliance) Johnson Ng (Executive Director, United Chinese Association of Florida) Val Dagani (Founder, Filipino American Coalition of Florida) Doug Mayorga (President, Florida Minority Chamber of Commerce)  Kerth J. Conze, Esq. (President, Haitian Bar Association) Jay Kim, Esq. (Asian Bar Association) Dr. Rubio Arnesto (Treasurer, Hispanic Publisher’s Association) Tomas Lares (Coalition of Latino Central Florida Faith Based Organizations) Debra Reyes (President, Neighborhood Lending Partners) Dorothy Hughes (President, Gateway Economic Empowerment Coalition) Romeo De La Paz (Chair, Filipino American Foundation) Romulo Poblete (Deputy Commander, Knights of Rizal) Evelyn Bruce (Director, NANAY Housing Resource Center) Eunice Barnum (President, Sherwood Forest/Paradise Park Community Association) Roderick Harvey, CPA (Board member, Florida Neighborhood Revitalization Business Loan Fund)  

www.fmcrc.org

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