Black businesses hit hard by COVID-19 fight to stay afloat

Detroit (AP) — Stephanie Byrd agonized over temporarily laying off nearly the entire staff at her family’s trio of Detroit businesses when the coronavirus pandemic hit.

But she's not just concerned about the impact on their bottom line.

She's worried other black-owned businesses will struggle to withstand another wave of economic uncertainty, following decades of inequity that made it hard for many to flourish in the first place.

“Most of the people I know who have businesses and are black are terrified right now,” said Byrd, whose family owns Flood’s Bar & Grille, The Block restaurant and the city’s Garden Theater. “There could be a new wave of black businesses that are able to reinvent themselves post-pandemic, but black businesses could also be wiped out for the most part within a black city. What would it look like without black-owned businesses?”

COVID-19 has disproportionately impacted black Americans, infecting and killing them at higher rates across the nation. But experts say the pandemic has also exacerbated existing economic disparities and raised fresh concerns about the survival of black businesses, many of which have been the backbone of cities like Detroit and Atlanta for years.

They also worry the pandemic could widen the existing black wealth gap. According to the Federal Reserve's 2016 Survey of Consumer Finance, the median white family net worth of $171,000 is about 10 times greater than that of a black family's, which is $17,150.

Black businesses historically have struggled to gain access to financing due to discriminatory lending practices and a lack of relationships with big banks. But civil rights leaders and historians say their struggles are also rooted in the simmering effects of racism and Jim Crow-era laws that enforced racial segregation and denied black people equal...