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Black Businesses Matter, But Will They Get Fair Share Of COVID-19 Aid Money?

NNPA NEWSWIRE — “African Americans never really recovered from the housing crash and economic meltdown and that reality is going to be a very important factor for Black people, especially since the U.S. may be going into some form of depression,” said Bill Fletcher Jr., former president of TransAfrica Forum and a senior scholar with the Institute for Policy Studies. “I saw a report last week that shows the Washington metropolitan area could lose 35 percent of small businesses. Add a layer of race onto that—lower savings rates and profit margins and most small biz not able to sustain themselves for three months and the problem becomes clear.”

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By Barrington M. Salmon, Contributing Writer, The Final Call
@bsalmondc

President Donald Trump and Congressional leaders announced the $2 trillion economic stimulus package—the Coronavirus Aid, Relief, and Economic Security (CARES) Act to great fanfare, touting the deliverables of different aspects of the provisions and their belief in its ability to slow the economic tsunami exacerbated by the novel coronavirus pandemic. One of the major selling points is a $1,200 one-time payment to adults.

The pandemic has cut a wide and deadly swathe through communities across the country, overwhelmed the medical infrastructures of places like New York City, Detroit and New Orleans, and brought much of America’s economic activity to a standstill. At press time the grisly tally in the U.S. stood at 356,942 confirmed cases and more than 10,524 deaths. New York is still the epicenter with more than 122,031 confirmed cases and almost 4,159 deaths.

In a desperate effort to blunt the spread of Covid-19, state governors have ordered as many as 230 million people to stay home, which has brought commerce to a virtual standstill. Along with the sudden and brutal decline of the much vaunted, record-setting stock market, the economy began a freefall dragging with it jobs, businesses—large and small—and the destinies and fortunes of tens of millions of American workers.

Compared to other small business owners, African Americans have generally had to face more daunting challenges such as smaller cash reserves to draw from, difficulty in securing bank loans and other financing and being sole proprietors or “mom and pop” establishments that are ineligible for most small business loans.

Businesses, big and small, have been savaged, with the hardest hit sectors being the travel and hospitality industries and the retail sector.

Financial planner and wealth manager Ivory J. Johnson acknowledged that Covid-19 has shaken up U.S. businesses and hit Black customers hard.

“It’s having a tremendous effect,” he said. “Cash flow just stops. Ten percent retail, 10 percent of restaurants, 20 percent of the population just stopped. This is the end of the business cycle, we’re at peak employment where wages go up, corporate money gets squeezed and they fire Bob,” he explained.

“People didn’t have time to pivot. For Black business, access to capital may not be there and Black customers are going to be hit very hard. It’s going to be a challenge for all businesses. You have to figure what you need to do now.”

He characterized the relief package as, “keep the light on money,” likened the U.S. economy to a Ponzi scheme with the U.S. government printing money “out of thin air,” and said now that corporations—who are carrying between $4 trillion and $10 trillion worth of debt—face an economic reckoning, the realization is dawning that the way they’ve been doing business is untenable.

“They are now seeing that this isn’t sustainable,” said Mr. Johnson, who for the past two decades has helped families and small businesses create and protect wealth, and who has guided them to see the benefits of developing a financial game-plan. “Nobody ever shoots Santa. People don’t care and weren’t complaining when they were making money.”

Mr. Johnson said the Covid-19 pandemic merely accelerated what has been happening to the economy, just at a slower rate.

“Here’s the reality: what happened is that they are creating money out of thin air, buying assets, feeding the Ponzi scheme,” he said. “They were rigging earnings, strip-mining stocks and buying back stocks, while the Federal Reserve pushed down interest rates and have been buying bonds and assets.”

Mr. Johnson, who founded Delancey Wealth Management. LLC in 2012, said 35 percent of small businesses couldn’t sustain a three-month shutdown, while 70 percent wouldn’t survive past six months.

He said the country is staring at the abyss. The unemployment rate during the Great Depression was 25 percent and financial experts are predicting that unemployment figures could reach that figure before all this is done. In late March and early April, about 10 million Americans filed for unemployment. The next jobs figures are expected to be considerably higher.

Veteran labor organizer Bill Fletcher, Jr. said there are a couple of layers to consider when contemplating the effect coronavirus will have on African Americans.

“One is the question of the impact of the crisis on Black America and Black businesses. One of the things that we’re going to have to deal with in this country, irrespective of race, is going to be trauma,” he said. “I think that it will have a particular type of impact on Black America—looking at illnesses and a further elimination of wealth, along the lines of 2008 crash,” added Mr. Fletcher.

“African Americans never really recovered from the housing crash and economic meltdown and that reality is going to be a very important factor for Black people, especially since the U.S. may be going into some form of depression,” said Mr. Fletcher, former president of TransAfrica Forum and a senior scholar with the Institute for Policy Studies. “I saw a report last week that shows the Washington metropolitan area could lose 35 percent of small businesses. Add a layer of race onto that—lower savings rates and profit margins and most small biz not able to sustain themselves for three months and the problem becomes clear.”

What comes out of this crisis will be equivalent to the aftermath of a war, he said.

“It’s not like coming out of a recession with the infrastructure intact. Even if the number of people who die isn’t as high, we’re looking at high levels of devastation economically,” Mr. Fletcher explained.

Marc Morial is one of a number of critics who don’t believe the package goes far enough and said he and others in the Civil Rights and business communities will have to push just as hard as they have to ensure that more is done for African American businesses. He said he doesn’t have to look too far to see the impact of the pandemic on small Black businesses owners in New York, where he lives.

“My barber is closed down. That’s where three people work. It’s their livelihood,” he said soberly. “Every barber shop, every hair salon has been closed down.”

Mr. Morial, president and CEO of the National Urban League, said he, other Civil Rights organizations and their allies fought fiercely to ensure that Congress wouldn’t pass a bill that completely ignored African American businesses at perhaps their time of greatest need.

“The $2.2 trillion recovery relief plan is a down payment,” Mr. Morial told The Final Call. “In the best case scenario, it will offer two months relief for small business owners and four months relief for unemployed worker. There is a need for them to go back. We fought hard in discussions, along with the Congressional Black Caucus (CBC), to ensure, for example that lending platforms would be open to non-profits, sole proprietors and mom and pop stores.”

“The language is broad and inclusive, and the execution may take a while. We have to lean in on this opportunity hard. African American business owners shouldn’t sit around and wonder if they should apply. Apply! We have to put pressure on the process for it to serve us.”

Mr. Morial said, “There will definitely be a need for more money and we’re working with Rep. Karen Bass to see what the next package will look like.” President Trump signed the bill March 27.

Ron Busby, President and CEO of the U.S. Black Chambers, Inc. (USBC), played a similar role as Mr. Morial pressing lawmakers to include provisions favorable to African American businesses.

“I want readers to understand that in the 700-plus page bill, nowhere was the word, ‘Black,’” said Mr. Busby, who serves on the Pfizer Small Business Council, National Newspapers Publishers Association Foundation Board of Directors, and White House African American Leadership Council. “It is a race-neutral bill, has nothing to do with Black people. The U.S. Chamber advocated to keep it race neutral to ensure that the bill would get support. Congress felt it would be easier to get passed that way.”

Mr. Busby said while $2 trillion seems like a great deal of money, $349 million will go towards the Small Business Administration’s Payment Protection Program (PPP).

“That also seems like a great deal of money but it’s not enough funding,” he said. “It will be very difficult for Black and small businesses. We fought for small, Black-owned businesses, fought for a couple of things—to ensure that businesses wouldn’t be cancelled because of supply chain issues and problems with developing products and widgets because of the epidemic. We also fought to get a ‘front-pay’ program where businesses would get paid in the next 15 days.”

“The federal government is notorious for slow payments of 60, 90, 120 days— and most Black-owned businesses are more interested in and dependent on cash-flow. They (negotiators) pulled it out at the last minute but they said they will continue to pay businesses through the disruption.”

Mr. Busby and other observers say most Black businesses have small payrolls and use what is called 1099 workers and contract employees, but if business owners apply for the PPP, it will pay 100 percent of their payroll for the next three months. Some aspects of the plan are still vague, saying he’s not sure how the wording will be received at banks, he added.

Ohio Congresswoman Joyce Beatty and Rep. Dwight Evans of Pennsylvania told The Final Call that the good news is that small businesses including those who work as 1099 employees, beauty and nail salons, painters and others who are self-employed will have an opportunity to participate.

“April is when they can first apply,” she said. “The good news is that dollars are available. It’s first come, first serve. It was important for us to make sure that individuals who work as contractors weren’t left out. We can’t make a commitment that everyone will get in but people should prepare their packages, go to the Treasury website and download the application package.”

Rep. Beatty, who is vice chairman of the Small Business Committee and serves on the Committee on Financial Services and the Consumer Protection and Financial Institutions subcommittee among others, said she has worked very closely with Chairman Nadya Velasquez and other committee members.

“CBC members have stepped up. We’re teaming up and working together but there are a lot of devils in the details, especially those not in the traditional SBA,” said Rep. Beatty, who has served in Congress since 2013.

She said she and some of her colleagues met with Civil Rights leaders and will continue to do so as all of them try to stay ahead of this crisis. Congressman Evans said providing economic distress loans, the PPP and $10 million for minority development agencies is very important and underscores the importance of small businesses.

“Small businesses are the backbone of our economy and it’s very important in terms of what these programs will mean,” he said. “We will probably need more money and jobs as ways to build wealth. Closing the income and wage gap and stabilizing and building Black businesses is a priority for Rep. Karen Bass.”

Rep. Beatty agreed with Mr. Morial and Mr. Busby that there’s much more that needs to be done to make sure that African Americans have a safety net during these calamitous times.

“The old adage is that when America gets a cold, African Americans get pneumonia,” she said. “What’s happening with coronavirus has exposed so many disparities. Disparities are being shown by the media. In Detroit, for example, 14 percent of the population is African American but 40 percent of those dying are African American. The increasing numbers of people who are incarcerated, homeless. We need to look at the total picture of disparities.”

Zeville Preston, a member of New York City’s Black Business Empowerment Committee (BBE) was scathing in her criticism of the relief package.

“This bill is D.O.A. (dead on arrival). We need something of value. Black blood and bodies built this country and as usual, once again, we find ourselves at the back of the line,” she said. “We’re 22 percent of New York City’s population but we are less than two percent of business and get less than two percent of the contracts, numbers which have declined over a five-year period. Black businesses dying on the vine and the governor cares not at all.”

“This is to put CBC on notice. They want people to think they did something, and they did nothing.”

A March 20, 2020 letter sent to the CBC points to 94 proposals to help African Americans that the body sent to Senate Minority Leader Chuck Schumer and House Speaker Nancy Pelosi, with only three speaking directly to Black people and only money allocated to Historically Black Universities and Minority Serving Institutions has a dollar amount attached to it: $450 billion. In their letter, the BBE expresses frustration and dismay: “The CBC’s 94 initiatives totaling $459 million basically leaves the Black business community with nothing, especially in New York state where all other ethnic groups and White-women’s participation far exceeds Black participation,” it states. “BBE is most disappointed that the CBC saw fit to argue the case for minorities, women and small businesses while neglecting to propose funding specifically for Black businesses. Harlem’s BBE finds this unacceptable!”

Ms. Preston said BBE is reaching out across American cities to see if business owners and others in the Black community are having the same issues.

“We’re figuring strategically to speak in one voice,” she said.

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Federal Raids Target Migrant Kids, Split Families

BLACKPRESSUSA NEWSWIRE — The Trump administration has reportedly removed at least 500 migrant children from their homes across the United States and placed them into government custody, according to multiple sources familiar with the matter.

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By Stacy M. Brown
Black Press USA Senior National Correspondent

The Trump administration has reportedly removed at least 500 migrant children from their homes across the United States and placed them into government custody, according to multiple sources familiar with the matter. The children, many of whom were living with family members or other vetted sponsors, were taken during so-called “welfare checks” carried out by Immigration and Customs Enforcement (ICE) and other federal agencies. According to CNN, the operations are part of a larger campaign launched shortly after President Donald Trump returned to office, with federal authorities setting up a “war room” inside the Department of Health and Human Services (HHS) to review data on children who entered the country alone and were later released to sponsors. Officials have used the room to coordinate efforts between agencies, including ICE and the Office of Refugee Resettlement (ORR), which oversees the custody of unaccompanied migrant children.

Trump officials claim the effort is aimed at protecting children placed in unsafe conditions or with unqualified sponsors, pointing to cases where children were released to individuals with criminal backgrounds or those involved in smuggling. Homeland Security spokesperson Tricia McLaughlin said the welfare checks have led to the arrests of some sponsors and the transfer of children into ORR custody. Federal data shows more than 2,500 children are currently in ORR custody. CNN reported that the average stay has grown significantly, from 67 days in December 2024 to 170 days by April 2025. Former Health and Human Services officials say new vetting rules—including income requirements, government-issued ID, and DNA tests—have made it far more difficult for parents and guardians, particularly those who are undocumented, to reclaim their children.

In some cases, reunifications that had already been scheduled were canceled. A recent lawsuit details how two brothers, ages 7 and 14, remain in government care because their mother cannot meet new documentation requirements under the revised policies. Mark Greenberg, a former senior HHS official, stated that the approach puts children in a difficult situation. “To the extent, the goal is to determine whether children are in danger or in need of help, this isn’t a good way to do that because it creates fear that anything they say could be used against their parent or family member,” he said. Immigration enforcement agents reportedly have visited children’s homes and asked about their journey to the U.S., school attendance, and upcoming immigration court appearances. Legal advocates say these visits, which sometimes include the FBI, are not standard child welfare procedures and can create fear and confusion among minors.

An FBI spokesperson confirmed the agency’s role, saying, “Protecting children is a critical mission for the FBI, and we will continue to work with our federal, state, and local partners to secure their safety and well-being.” Multiple outlets noted that the Trump administration has not provided clear evidence that large numbers of children are missing. Instead, it has referenced a Department of Homeland Security inspector general report from 2023 that noted more than 291,000 unaccompanied minors had not received notices to appear in immigration court. Former officials note that these figures do not necessarily indicate that the children are missing; some lacked updated addresses or were affected by administrative backlogs.

Within HHS, officials were instructed to expedite policy changes. Former ORR Ombudsman Mary Giovagnoli stated that a senior ICE official, Melissa Harper, was temporarily appointed to lead ORR. Her short tenure was followed by Angie Salazar, another former ICE official who now frequently communicates with White House Deputy Chief of Staff Stephen Miller. Trump’s team argues the Biden administration allowed thousands of unaccompanied children to enter the country without sufficient oversight. Jen Smyers, a former ORR deputy director, stated that all sponsors underwent thorough vetting, including Department of Justice background checks and reviews of the sex offender registry. “No amount of vetting is a predictor of the future,” she said. The Miami Herald recently reported that a 17-year-old foster child in Florida was removed from his home in shackles and transferred to ICE custody. The boy and his mother had crossed the border without documentation, but he had been living in a state-supervised foster placement. The case raised concerns about the state’s cooperation with federal enforcement and the message it sends to immigrant families. Concerns about federal custody of vulnerable children are not confined to immigration.

In North Carolina, a 7-month-old baby died after being left in a hot minivan by her foster mother, who now faces charges of negligent child abuse and involuntary manslaughter. In Hawaii, dozens of children have been forced to sleep in government offices and hotels due to a shortage of foster placements. In North Dakota, a foster couple has been charged in the death of a 3-year-old after surveillance footage showed the child being repeatedly assaulted. “These cases show what happens when systems meant to protect children fail them,” said Laura Nally, director of the Amica Center for Immigrant Rights Children’s Program. “There’s a growing concern that these welfare checks are being used to carry out mass detentions of sponsors and unnecessarily return children to government custody.”

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Protests of a Costly and Historic Parade

BLACKPRESSUSA NEWSWIRE — President Trump is planning an elaborate and costly celebration for the 250th anniversary of the U.S. Army that coincides with his birthday.

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By April Ryan

It will rain on President Trump‘s parade on Saturday if most weather forecasts correctly predict the chance of storms. President Trump is planning an elaborate and costly celebration for the 250th anniversary of the U.S. Army that coincides with his birthday. When asked if he plans to attend the massive D.C. celebration, New York Democratic Congressman Greg Meeks exclaimed,” Heck no!” He elaborated, saying, “It is clear to me that what Donald J. Trump is trying to do is to emulate Vladimir Putin.” Trump and Putin, the Russian president, are friends. Meeks feels “that’s where he initially got the idea from when he saw the tanks going down the street and how people bow down to Vladimir Putin, how…that authoritarian runs his country where no one questions what he does.”

Meanwhile, around the nation 1600 protests are scheduled to coincide with what is happening in Washington, D.C. Democratic Congressman Al Greene confirms he will attend several “No King Day” protest rallies and marches in his home state of Texas. The congressman questions the president’s comments about using “force” for anyone trying to stop the parade. Reverand William Barber plans to be in Philadelphia on Saturday. “We are having a rally bringing people together,” the civil rights leader confirmed. The leader of Repairers of the Breach added, “Those rallies are gonna be massive and multiracial of every race, color, creed, religion, geographic area, so this is not a moment. We must have a constant movement.”

Weeks ago, DC Mayor Muriel Bowser warned the parade, and all its military might, and pageantry would cost “many millions of dollars” just to repair District streets after the heavy artillery tanks rolled down the historic roads in the nation’s capital. Tall gates and other barricades around the White House are part of the parade’s security measures. The Secret Service has warned of a high-security presence in the area for the parade. You can expect to see military tanks, dozens of other military vehicles, and thousands of service members marching along a route stretching nearly four miles from the Pentagon to the White House.

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Critics Question 2024 Results as Musk Tactics Surface

BLACKPRESSUSA NEWSWIRE — Now, a Wisconsin nonprofit has filed a legal complaint accusing Musk, his America PAC, and a Musk-affiliated group called United States of America Inc. of violating state election laws by bribing voters.

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By Stacy M. Brown
Black Press USA Senior National Correspondent

Donald Trump’s return to the White House in 2024 has reignited questions about election integrity, particularly after his remarks thanking Elon Musk for what he called a “landslide” win in Pennsylvania. “He knows those computers better than anybody… all those vote-counting computers,” Trump said. “So, thank you to Elon.” The comment set off alarm, including Texas Rep. Jasmine Crockett. “So, Trump is rambling on about he and Elon rigging the election?! Am I missing something or is he confessing to yet another damn crime?!” she posted on social media.

Now, a Wisconsin nonprofit has filed a legal complaint accusing Musk, his America PAC, and a Musk-affiliated group called United States of America Inc. of violating state election laws by bribing voters. The Wisconsin Democracy Campaign and two voters allege Musk handed out $1 million checks and that his PAC paid $100 to registered voters who signed petitions and gave their contact information. Wisconsin law prohibits offering anything of value over $1 to encourage someone to vote. The complaint also cites violations of the state’s lottery ban. The plaintiffs are asking a court to declare the actions illegal, prevent future violations, and award damages if applicable.

The lawsuit follows a failed attempt by Wisconsin Attorney General Josh Kaul to block Musk’s actions earlier this year. Kaul argued that Musk’s conduct amounted to illegal inducement, but courts declined to intervene before the April state Supreme Court election. Jeff Mandell, president and general counsel for Law Forward, which represents the plaintiffs, said this new case is being filed under more typical legal timelines. “We’re trying to create … accountability in a more regular timeline, in a way that gives the courts the opportunity to look at this more carefully,” Mandell said.

Musk, who served briefly as a Trump adviser and led a short-lived federal agency focused on cost-cutting, has denied wrongdoing. He initially promoted the giveaways as rewards for early voters but later revised eligibility criteria following legal scrutiny. The controversy has added fuel to growing concerns over anomalies in places like Rockland County, New York, where Vice President Kamala Harris reportedly received virtually no votes despite Democratic victories in other races. “We know exactly what happened and how it unfolded, and we’re asking the court to say this is not acceptable,” Mandel has said.

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