Q&A with Louisville Urban League (A Path Forward)

We recently launched the First Dollar Program to provide early-stage capital to Louisville’s Black and Brown entrepreneurs. Through partnerships, Render Capital provides critical “first dollar” grants to early-stage entrepreneurs who lack capital access due to historic and systemic inequality. The program provides $5,000 grants to businesses at the earliest stage of development, when capital investment is most critical. In this Q&A series, we introduce the four local, Black-led partner organizations whose close work with entrepreneurs makes them vital in facilitating the disbursement of the grant funds. Here is what the Louisville Urban League’s A Path Forward initiative had to say.

Tell us a little bit about the Louisville Urban League and A Path Forward.

The mission is to assist African Americans and other marginalized populations in attaining social and economic equality through direct services and advocacy. The Louisville Urban League is dedicated to fostering economic empowerment in order to elevate the standard of living in historically underserved urban communities, with a focus on jobs, justice, education, health, and housing. The A Path Forward initiative was developed in the summer of 2020 in direct response to the civil unrest and calls for justice, a collective group of Black nonprofit leaders organized by the LUL developed a comprehensive strategic plan to address the challenges in the Black community.

How do you support Black and brown entrepreneurs in the Louisville and Southern Indiana region?

A Path Forward identified priority needs for Black businesses, particularly in West Louisville, focused on access to professional back-office services and access to funding. 2020 was a challenging year for all businesses but even more so for Black businesses, many that were already financially fragile have closed, and many others were unable to access aid due to a lack of typical back-office functions to produce proper documentation. A Path Forward is working with the AMPED Russell Tech Business Incubator to create a network of volunteers to augment paid back-office support around accounting, legal, marketing, and other industry-specific services.

As a First Dollar Program partner, what trends have you seen in early-stage funding for Black and brown entrepreneurs?

Early-stage businesses struggle with access to funding beyond their own contributions. Most do not have the necessary credit history or collateral required for traditional business loans. In addition, particularly for Black and other underserved business owners, most do not have the social networks or the knowledge to even begin to get prepared for capital. With the exception of a few nonprofit microlenders, the options are limited, and even in mainstream business financing there is an absence of flexible products to address the specific challenges of minority business owners.

How will First Dollar funds support your work?

First Dollar funds and the intended outcomes are directly in line with the goals of A Path Forward’s business initiatives. These funds will help us directly support early-stage Black businesses. Coupled with the appropriate technical assistance and resources, these early dollars will directly impact a business’s ability to create the foundations that come from a strong back-office structure.

Why is it important to support the development of Black and brown businesses specifically?

Business ownership is one of the main building blocks of wealth generation, and businesses are crucial building blocks of thriving communities. Historically, Black entrepreneurs have faced intentional barriers to building wealth and community through business ownership, the impact is apparent in income disparities and struggling neighborhoods. Black people are not lacking in creative ideas or innovative ways to address market-based problems; they deserve intentional support to create strong, lasting businesses.

How has your work shifted due to COVID and increased attention toward racial injustice?

The Urban League has always been involved in the work of justice, particularly in the form of economic empowerment. A Path Forward initiatives were developed in direct response to the social unrest the country experienced. The shift came in working collaboratively with organizations to develop a coordinated plan to move Black Louisville forward. City budget cuts had eliminated business resources at the NIA Center, leaving a gap in West Louisville, and amid the pandemic it was starkly apparent what the lack of those resources was costing Black business owners.

Can you share a recent “win” for A Path Forward?

A Path Forward has received positive attention and support for its initiatives. As a result of that early support, APF was able to assist a local inventor with securing the necessary funds through a forgivable loan to get his design to production and eventually to market. This early success serves as a model for creating responsive, flexible products and the impact support in early-stage business can have.

What preconceived notions exist in your line of work?

A lot of society’s perceptions are built on the concept of bootstrapping, that if you are ambitious enough and work hard enough you can attain success, paired with the notion that people are looking for handouts. The reality is that success never happens alone, and Black people in particular have faced barriers intentionally created to mitigate the chance of success. Creating opportunities and equipping these businesses with the tools and skills to be sustainable is empowering, not a handout.

What’s on the horizon for A Path Forward, and what gives you hope for the future?

We are looking forward to partnering with AMPED’s Russell Tech Business Incubator, Buy Black Lou, and other organizations to build a robust network of professional service providers and Black businesses, as well as being a hub for Black businesses to connect to resources including funding.

“Growing up in West Louisville, I have witnessed the changes over the years and how they have impacted the community. I am hopeful for change in the future as I see a renewed energy in people and projects targeted at helping Black businesses be successful and communities thrive.”, Cynthia Brown, Managing Director, Black Business Initiatives