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PRESS ROOM: Community Bank Launches Innovative Friends & Family Fund to Support Entrepreneurs of Color

CHICAGO DEFENDER — There is no shortage of great business ideas among communities of color but what they have historically lacked is the access to seed capital to launch their businesses. The most common funding path for burgeoning business owners begins with asks of support from family and friends, but a stark wealth gap exists that limits minority entrepreneurs’ ability to access significant capital—for example, white households in the United States have a median household wealth of $142K while Black households have a mere $11K in wealth.

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Image by: berkshirebank.com

Berkshire Bank Takes Aim at the Growing Racial Wealth Gap with New Loan Fund

By The Chicago Defender

Martha’s Vineyard, Massachusetts—Yesterday, Berkshire Bank announced the launch of their new Friends & Family Fund powered by The Runway Project aimed at helping entrepreneurs of color access the seed capital necessary to fund their dreams and spur economic growth in underserved communities. The fund is one of the first offerings under Berkshire’s new Be First initiative, the bank’s social impact strategy.

There is no shortage of great business ideas among communities of color but what they have historically lacked is the access to seed capital to launch their businesses. The most common funding path for burgeoning business owners begins with asks of support from family and friends, but a stark wealth gap exists that limits minority entrepreneurs’ ability to access significant capital—for example, white households in the United States have a median household wealth of $142K while Black households have a mere $11K in wealth.

This racial wealth gap can be traced to the long history of discrimination in America, including discriminatory “redlining” practices through which the federal government and banks conspired to block Black homeownership (and access to other lines of credit and banking services), thereby stunting the community’s ability to build and transfer generational wealth. And it persists today because many banks are still unwilling to lend to, or invest in, communities of color. Yet despite this lack of access to capital Black entrepreneurs, particularly Black women, are starting businesses at a rate that far outpaces the majority.

Berkshire Bank’s new Friends & Family Fund powered by The Runway Project is designed to bridge the gap in access to capital by providing early stage loans to seed big bold ideas and invest in promising new minority-owned businesses. Key features:

  • The fund is fueled by a specialty Certificate of Deposit that provides a safe, NCUA and FDIC insured and certified, market-rate return on investment while providing liquidity for the loans.
  • Loan applications will be reviewed through a community-based underwriting process designed to eliminate historical barriers like an over reliance on credit scores, personal collateral, or historical tax and financial reporting as an indicator of futures success.
  • Trusted advisors provide holistic business support and ongoing financial coaching to entrepreneurs as they build their companies.

“Our strategy at Berkshire Bank is to be a bank of and for the community. We recognize that all too often banks have been seen as an obstacle rather than a partner—we want to change that. Our new Friends & Family Fund will serve as a model of how banks can expand access to capital in communities that have traditionally been boxed out of the investments needed to help spark economic growth. We are doing our part to invest in our communities because we know that banks can’t continue to grow future profits unless we help to grow wealth across the board. We anticipate that the seed loans we provide to entrepreneurs of color will help generate wealth that returns dividends for decades to come,” said Richard Marotta, CEO of Berkshire Bank.

“Our positive social impact is our strategic advantage,” says Malia Lazu, EVP and Chief Experience Officer of Berkshire Bank who is the architect of the Be First initiative and will oversee the new Friends & Family Fund. “We thrive when the people we serve thrive, which is why we are committed to doing our part to help close the racial wealth gap rather than perpetuate it. Berkshire Bank recognizes the responsibility we have to invest in the communities we serve. We are a community bank; which means our products and programs have to be focused on helping our neighbors build businesses, generational wealth and thrive. There are plenty of reasons why new businesses fail, but the lack of access to seed capital shouldn’t be one of them.”

“We are excited to partner with Berkshire Bank to administer the Friends & Family Fund. This virtually risk-free community investment will be a great win-win for everyone and go a long way towards bridging the seed funding gap for minority entrepreneurs,” said Jessica Norwood, founder of The Runway Project.

The Friends and Family Fund was launched at an event today hosted by lawyer and real-estate executive Richard Taylor on Martha’s Vineyard, a historic vacation hub for African American business, political, and community leaders.

This article originally appeared in the Chicago Defender

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Recently Approved Budget Plan Favors Wealthy, Slashes Aid to Low-Income Americans

BLACKPRESSUSA NEWSWIRE — The most significant benefits would flow to the highest earners while millions of low-income families face cuts

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By Stacy M. Brown

BlackPressUSA.com Senior National Correspondent

The new budget framework approved by Congress may result in sweeping changes to the federal safety net and tax code. The most significant benefits would flow to the highest earners while millions of low-income families face cuts. A new analysis from Yale University’s Budget Lab shows the proposals in the House’s Fiscal Year 2025 Budget Resolution would lead to a drop in after-tax-and-transfer income for the poorest households while significantly boosting revenue for the wealthiest Americans. Last month, Congress passed its Concurrent Budget Resolution for Fiscal Year 2025 (H. Con. Res. 14), setting revenue and spending targets for the next decade. The resolution outlines $1.5 trillion in gross spending cuts and $4.5 trillion in tax reductions between FY2025 and FY2034, along with $500 billion in unspecified deficit reduction.

Congressional Committees have now been instructed to identify policy changes that align with these goals. Three of the most impactful committees—Agriculture, Energy and Commerce, and Ways and Means—have been tasked with proposing major changes. The Agriculture Committee is charged with finding $230 billion in savings, likely through changes to the Supplemental Nutrition Assistance Program (SNAP), also known as food stamps. Energy and Commerce must deliver $880 billion in savings, likely through Medicaid reductions. Meanwhile, the Ways and Means Committee must craft tax changes totaling no more than $4.5 trillion in new deficits, most likely through extending provisions of the 2017 Tax Cuts and Jobs Act. Although the resolution does not specify precise changes, reports suggest lawmakers are eyeing steep cuts to SNAP and Medicaid benefits while seeking to make permanent tax provisions that primarily benefit high-income individuals and corporations.

To examine the potential real-world impact, Yale’s Budget Lab modeled four policy changes that align with the resolution’s goals:

  1. A 30 percent across-the-board cut in SNAP funding.
  2. A 15 percent cut in Medicaid funding.
  3. Permanent extension of the individual and estate tax cuts from the 2017 Tax Cuts and Jobs Act.
  4. Permanent extension of business tax provisions including 100% bonus depreciation, expense of R&D, and relaxed limits on interest deductions.

Yale researchers determined that the combined effect of these policies would reduce the after-tax-and-transfer income of the bottom 20 percent of earners by 5 percent in the calendar year 2026. Households in the middle would see a modest 0.6 percent gain. However, the top five percent of earners would experience a 3 percent increase in their after-tax-and-transfer income.

Moreover, the analysis concluded that more than 100 percent of the net fiscal benefit from these changes would go to households in the top 20 percent of the income distribution. This happens because lower-income groups would lose more in government benefits than they would gain from any tax cuts. At the same time, high-income households would enjoy significant tax reductions with little or no loss in benefits.

“These results indicate a shift in resources away from low-income tax units toward those with higher incomes,” the Budget Lab report states. “In particular, making the TCJA provisions permanent for high earners while reducing spending on SNAP and Medicaid leads to a regressive overall effect.” The report notes that policymakers have floated a range of options to reduce SNAP and Medicaid outlays, such as lowering per-beneficiary benefits or tightening eligibility rules. While the Budget Lab did not assess each proposal individually, the modeling assumes legislation consistent with the resolution’s instructions. “The burden of deficit reduction would fall largely on those least able to bear it,” the report concluded.

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A Threat to Pre-emptive Pardons

BLACKPRESSUSA NEWSWIRE — it was a possibility that the preemptive pardons would not happen because of the complicated nature of that never-before-enacted process.

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By April Ryan

President Trump is working to undo the traditional presidential pardon powers by questioning the Biden administration’s pre-emptive pardons issued just days before January 20, 2025. President Trump is seeking retribution against the January 6th House Select Committee. The Trump Justice Department has been tasked to find loopholes to overturn the pardons that could lead to legal battles for the Republican and Democratic nine-member committee. Legal scholars and those closely familiar with the pardon process worked with the Biden administration to ensure the preemptive pardons would stand against any retaliatory knocks from the incoming Trump administration. A source close to the Biden administration’s pardons said, in January 2025, “I think pardons are all valid.  The power is unreviewable by the courts.”

However, today that same source had a different statement on the nuances of the new Trump pardon attack. That attack places questions about Biden’s use of an autopen for the pardons. The Trump argument is that Biden did not know who was pardoned as he did not sign the documents. Instead, the pardons were allegedly signed by an autopen.  The same source close to the pardon issue said this week, “unless he [Trump] can prove Biden didn’t know what was being done in his name. All of this is in uncharted territory. “ Meanwhile, an autopen is used to make automatic or remote signatures. It has been used for decades by public figures and celebrities.

Months before the Biden pardon announcement, those in the Biden White House Counsel’s Office, staff, and the Justice Department were conferring tirelessly around the clock on who to pardon and how. The concern for the preemptive pardons was how to make them irrevocable in an unprecedented process. At one point in the lead-up to the preemptive pardon releases, it was a possibility that the preemptive pardons would not happen because of the complicated nature of that never-before-enacted process. President Trump began the threat of an investigation for the January 6th Select  Committee during the Hill proceedings. Trump has threatened members with investigation or jail.

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Reaction to The Education EO

BLACKPRESSUSA NEWSWIRE — Meanwhile, the new Education EO jeopardizes funding for students seeking a higher education. Duncan states, PellGrants are in jeopardy after servicing “6.5 million people” giving them a chance to go to college.

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By April Ryan

There are plenty of negative reactions to President Donald Trump’s latest Executive Order abolishing the Department of Education. As Democrats call yesterday’s action performative, it would take an act of Congress for the Education Department to close permanently. “This blatantly unconstitutional executive order is just another piece of evidence that Trump has absolutely no respect for the Constitution,” said Rep. Maxine Waters (D-CA) who is the ranking member on the House Financial Services Committee. “By dismantling ED, President Trump is implementing his own philosophy on education, which can be summed up in his own words, ‘I love the poorly educated.’ I am adamantly opposed to this reckless action, said Rep. Bobby Scott who is the most senior Democrat on the House Education and Workforce Committee.

Morgan State University President Dr. David Wilson chimed in saying “I’m deeply concerned about efforts to shift federal oversight in education back to the states, particularly regarding equity, justice, and fairness. History has shown us what happens when states are left unchecked—Black and poor children are too often denied access to the high-quality education they deserve. In 1979 then President Jimmy Carter signed a law creating the Department of Education. Arne Duncan, former Obama Education Secretary, reminds us that both Democratic and Republican presidents have kept education a non-political issue until now. However, Duncan stressed Republican presidents have contributed greatly to moving education forward in this country.

During a CNN interview this week Duncan said during the Civil War President Abraham “Lincoln created the land grant system” for colleges like Tennessee State University. “President Ford brought in IDEA.” And “Nixon signed Pell Grants into law.” In 2001, the No Child Left Behind Act was signed into law by President George W. Bush which increased federal oversight of schools through standardized testing. Meanwhile, the new Education EO jeopardizes funding for students seeking higher education. Duncan states, PellGrants are in jeopardy after servicing “6.5 million people” giving them a chance to go to college. Wilson details, “that 40 percent of all college students rely on Pell Grants and student loans.”

Rep. Alma Adams (D-NC) says this Trump action “impacts students pursuing higher education and threatens 26 million students across the country, taking billions away from their educational futures. Meanwhile, During the president’s speech in the East Room of the White House Thursday, Trump criticized Baltimore City, and its math test scores with critical words. Governor West Moore, who is opposed to the EO action, said about dismantling the Department of Education, “Leadership means lifting people up, not punching them down.”

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