MID-SOUTH MINORITY COUNCIL TADP

Cash Continuum is a closed-loop collaborative financial services solution for small businesses, primarily minority-owned and women-owned (M/WBE). The solution provides access to cash, financial services education, technical assistance, consulting, and one-on-one mentoring. It is designed to serve businesses at all stages of the business lifecycle. It fulfills the Relief phase of the organization’s “Relief, Recovery, and Stabilization Initiative: Navigating COVID and Beyond” launched in April 2020.   The solution, a new process, designed to streamline and guide business owners in accessing cash, grants, micro and commercial loans, lines of credit, equity investments, and mergers and acquisitions.  

The solution guides business owners from intake through a series of steps using skip logic from assessment, cash needs and amount, technical assistance, consulting, and financial education to appropriate partner lending institutions. 

The technology includes a web-based intake process, electronic data collection forms, online scheduling, virtual meetings for consultations and one-on-one technical assistance, virtual seminars and webinars, database management, and reporting tools.  

The process was designed to address challenges, issues, and barriers identified by small and minority-owned business (MBE) owners without established banking relationships to access the Payroll Protection Program funds. Banking partners, (First Horizon, SunTrust now Truist, Regions), concerned by the small number of MBEs that were applying for the PPP loans compared to the majority-minority population of our community contacted our organization to outreach to MWBEs. We conducted a survey of our MWBE membership and identified numerous inequities in access to cash. This initial step led to the design of the solution. 

We have created a one-stop-shop; a single point of entry where all services are contained within the solution. The MMC-TADP and MMBC Continuum have responded to businesses facing various challenges and issues since the 2020 pandemic, especially for those businesses in rural and/or economically distressed areas. These businesses lacked the knowledge and resources needed to create a viable financial infrastructure. Challenges included revenue reduction of 50% or more and the inability to pay business obligations.  Other issues faced by minority and women-owned businesses include worker shortage, a decrease in sales, and a loss of payables.   

During the pandemic when the Payroll Protection Program (PPP) funds were available to minority businesses, they were unaware of the process for application. Further research determined these businesses did not have established banking relationships, basic financial education, and information about the process, and therefore were unable to take advantage of these funds.  According to census statistics, about 11,783 local area businesses filed for and received PPP funds. Of these, only 77 black businesses in Shelby County (0.7%) received PPP funds.  This data confirms that black-owned businesses fared worst compared to other businesses.   

This process caused stagnancy within a siloed marketplace, needing a more efficient design for better access. Once issues were pinpointed, the Cash Continuum was able to direct them to loans and grants that would help these businesses operate more efficiently.   

The Cash Continuum will champion a non-siloed, closed-loop process, to streamline these issues making it less complicated in the future. 

The pandemic presented small and minority business owners with challenges that negatively impacted their revenue, such as the loss of workforce. Like corporations that experienced similar challenges, small and minority business owners required access to capital to manage day-to-day operations, like payroll, to remain operative. However, while conducting primary and secondary research, it was quickly discovered that many lacked the structure and support needed to be awarded COVID-related funding. 

When asked via a membership survey, “Without seeking additional funding, how long do you anticipate being able to remain open?”, nearly 59% of respondents shared the possibility of shuttering in less than a year. While approximately 77% stated they would apply for Payroll Protection Program (PPP) assistance, the organization would find through conversation with members and other businesses that sought financial assistance, that many business owners were denied or simply did not apply due to the lack of a sound financial infrastructure. 

According to Forbes, the PPP distributed $521 billion to 5 million firms with loans averaging $107,000. However, in 30 counties considered vulnerable to Black-owned business closures, most saw only 15%-20% of their total businesses receive PPP loans. 

These findings led to the design of a holistic, closed-loop process that removes challenges, barriers, and issues, small and minority businesses face when seeking access to capital during the pandemic and beyond. Program support includes general education and tailor-designed solutions including webinars, guides, technical assistance, consulting, access to a network of financial institutions, and more at no cost to the business owners.

Cash Continuum serves small and minority-owned businesses with an emphasis on facilitating minority-owned accessibility to financial resources. There was a total of 113,000 firms operating in the Metro area of Memphis; and of those firms, 60,000 were minority-owned in 2017. Although minorities owned more firms in the area, the annual revenue generated for these firms only totaled $1.3 million while White firms, despite owning fewer firms in the area, earned over $3 million.  Black-owned firms earned significantly less revenue than both minority and white firms combined. The revenue gap is a direct result of a lack of accessibility to financial resources used to grow, scale or sustain a business. The solution works to qualitatively improve financial relationships, education, and infrastructure for small and minority-owned businesses while actively seeking opportunities to close the revenue gap. Cash Continuum changes the lives of small and minority-owned firms by increasing the firm’s revenue which directly impacts an increase in jobs, disposable income, consumer spending, and even homeownership. The team assesses firms one-on-one to tailor and design training events and opportunities for those firms to develop their financial awareness and literacy. Firms are invited to participate in and engage in both virtual and in-person training and are offered one-on-one assistance specific to their financial needs and concerns. Cash Continuum has provided workshops such as “Clear Path to Cash”, where business owners were taught the importance of financial statements and how to interpret them to reduce costs and find hidden cash within their business. The solution addresses small and minority-owned businesses, even more specifically Black-owned business needs, by continuing to evolve as new access to capital challenges arise.  

It is being implemented in the state of Tennessee.

Our organization's mission is to sustain small businesses.

MMC-TADP Mission Statement:

The mission of TADP is to provide unparalleled core business development resources that empower minority and women-owned businesses to successfully compete in the global economy.

The MMC-TADP was established in 2002 as an outgrowth of the MMBC Continuum. Prior to that, the agency operated as a program of The MMBC Continuum; however, as the need to provide more specialized training and technical assistance grew, the MMC-TADP, Inc. was formed. The primary purpose is to serve the small business community of Minority and Women-owned businesses. The overall intent is to accelerate the development of their core business competencies, whereby they can successfully compete in the open marketplace, create and retain jobs (reduce poverty) and sustain and grow the local economy. This is accomplished through transformative training, leadership development, technical assistance, access to capital, and ongoing advocacy programs.

The Cash Continuum evolved from the "Relief, Recovery, and Stabilization Initiative: Navigating COVID and Beyond" launched in April 2020.  Many small minority businesses had no banking relationship, and could not participate in the Paycheck Protection Program fund.  

In 2020 a banking partner, Sun Trust now Truist, awarded funding to provide direct grant funds to Minority and Women-owned Businesses (M/WBEs). The impact was the ability to continue their operations (non-closures), and retention of 194 jobs, with 493 lives impacted. 

The immediate results were a reduction in unemployment and companies remained viable. 

Our business partners were asked, “Without seeking additional funding, how long do you anticipate being able to remain open?”, 59% felt, less than a year. 

In January 2022, 60 Decibels, an impact measurement firm, published a survey of 233 small businesses, to understand the capital landscape in Memphis. 

The majority were Black, first-time entrepreneurs, and had some experience applying for loans. It was determined Black owners were less confident in accessing capital, but their motivating factors were “helping the business grow,” needing financial support,” and “will lead to better opportunities.” 

The survey revealed over half of the business owners had never applied for a loan. Approximately 67% responded they did not need one, but almost half, 47%, only had cash reserves of one to six months. 

One commented, “When my business was first starting out, I didn’t have the necessary experience banks and other lenders were looking for. That discouraged me from applying. Since then, I don’t want the burden of having to go through the process again and paying the loan back on top of that.” 

When asked, “If they knew they could be approved for a 5-year low-interest investment, how much money would you apply for?” Approximately 42% would apply for less than $50,000, 68% would use it to expand and or improve the business and 37% would acquire equipment, property, or lease. 

Cash Continuum affects a stronger economy by increasing the local tax base to improve schools, disposable income, home and business ownership, generational wealth, first-generation college graduates, and second-generation business owners while decreasing crime rates.

Current number of people being served: 180 

Number Served in One Year: 350 

Number that will be served in five years: 2,000 

The Cash Continuum currently serves 180 small and minority businesses, and forecasts serving at least 350 small and minority businesses within one year, and 2,000 within the next 5 years. Our goal is to increase the number of small businesses we serve by 10% each year, which will result in a total of 2,000 small businesses receiving holistic, closed-loop assistance from the Cash Continuum by the end of 2027. 

The solution is delivered virtually across the state of Tennessee to minority-owned and small businesses in urban and rural communities with a focus on businesses in underserved communities.  The majority of the African-Americans in the state of Tennessee live in Memphis (36%), followed by Nashville (29%), Knoxville (3%), and Chattanooga (5%). The solution is designed not only to reach minority-owned businesses but also the large population of 109,000 non-employer minority-owned firms across the state, of which 60,000 are located in Memphis.   Stakeholders include MMBC Continuum/TADP employees, contracted financial consultants and service providers, the public/private corporate membership of The MMBC Continuum, and 2022 corporate/foundation funders (First Horizon Bank, FedEx Cares, Wells Fargo) to date. The organizational strategy is influenced by the issues identified during the assessment, technical assistance/consulting sessions with program participants, and feedback from the public/private corporate procurement professionals seeking to purchase goods/and services from small and minority-owned businesses. 

The Mid-South Minority Council TADP, (MMC-TADP) Inc. is a private non-profit 501(c) (3) corporation.  The organization was established in 2002 as an outgrowth of the Mid-South Minority Business Council Continuum (MMBC Continuum).  MMC-TADP, Inc. draws upon the over thirty-year history of The MMBC Continuum, which serves as the foremost minority business development organization in the Mid-South area.  Prior to its establishment as an independent agency, the MMC-TADP operated as a program of The MMBC Continuum.  However, as the need to provide more specialized training and technical assistance grew beyond the resources and original mission of The MMBC Continuum, the MMC-TADP, Inc. was formed.  Several organizations representing The MMBC Continuum’s corporate membership came together to fund the MMC-TADP, Inc.  It is governed by a volunteer board of directors. Today, approximately 650 members of The MMBC Continuum as well as other economic development agency affiliates have access to the services provided by MMC-TADP, Inc.  Area professionals provide technical assistance in group settings during virtual and in-person webinars and seminars or individually. 

 In order to prompt revenue growth for M/WBEs, The MMBC Continuum is strategically identifying industry segments where minorities are under-represented or do not exist at all.  These segments will represent major spend opportunities and thus have the wherewithal to increase M/WBE revenues and provide more competitive suppliers to public and private corporations across the region, which tends to improve price competition.   

The Cash Continuum solution is implemented via the strong, long-standing partner network of The MMC-TADP, Inc and The MMBC Continuum.  The efforts of the combined entities are led by Jozelle Luster Booker, President and CEO.  Booker has nearly 35 years of economic development, corporate procurement, and supplier diversity experience in the Memphis community.  Nearly 30 years were spent at Memphis Light, Gas and Water Division and five years as the President and CEO of The MMBC Continuum.  She is respected across the state of Tennessee and the Mid-South region for her work in creating the utility’s supplier diversity program and providing access to procurement and contracting.  Hundreds of minority-owned and women-owned businesses have grown to scale due to procurement and supplier diversity policy changes she implemented at the utility. Additionally, Booker has earned the respect of local, state, and federal policy makers for her knowledge, experience and passion for the growth and development of minority-owned and women-owned businesses. 

MMBC Continuum, with the MMC-TADP, Inc. has been a community staple with over 30 years experience in helping hundreds of small businesses transition from non-employer firms that scaled to become employer firms. The organization’s business and community “trust bank” has been built upon a solid foundation and reputation as a solutions source. Through a variety of technical and resource-rich investments the organization has supported the growth and sustainability for hundreds of small businesses. From 2008 to 2021, businesses served by the organization conservatively reported over $2.7 billion dollars in contract awards with over 12,500 jobs. The organization’s outreach/communication methods include one-on-one consultations/advocacy, email/news, social media, video, surveys, digital notifications, all proven media to reach and connect with business owners. Primary engagement strategies include assessments, confidential sessions with professional resource providers, growth plans, industry analysis and other relevant proprietary tools that directly address the many challenges facing business owners today. 

Survive: Remove barriers to accessing capital necessary to keep small and minority businesses operative during and beyond the pandemic. 

During year one, the impact goal was to remove barriers and create strategies for small and minority business owners to gain access to traditional and non-traditional capital to combat challenges caused by the pandemic. The program identified challenges and created education and training, and offered consulting to reduce or eliminate them. Tools and tactics the program designed and implemented included webinars and virtual clinics to assist with PPP application preparation, grant and loan guides for convenient accessibility to local, state-wide and nation-wide funding opportunities and individual technical assistance to assist with tax preparation. 

Thrive: Improve understanding of opportunities to access capital and utilize it to scale operations. 

During years two through five, the organization plans to increase the public's awareness about the program’s offerings, change attitudes and behaviors of small and minority businesses about financial management, improve program participant financial literacy and continue to connect them to funding opportunities. Strategies that will be implemented include a strategic communications plan to increase participation; design campaigns and education to reduce apprehension about applying for funding; and offer webinars, seminars, workshops, and consulting led by financial experts and partners to improve financial management and increase the likelihood of financial awards for participants. 

When small and minority businesses have healthy financial infrastructures, it can ultimately lead to increased job creation and retention, new residents and companies in the market and, overall, improve the local economy.  

The MMBC Continuum/MMC-TADP team and I are well-positioned to deliver this solution because it aligns with the missions of both organizations.  The solution creates economic prosperity, fosters the growth of minority-owned and women-owned businesses, leads to the creation of jobs, and improves the quality of life of people across the community and state.  The team members are strategic thinkers, process-oriented, communicators, creative, data analysts, organized, visionary and see opportunities at every turn.  Our collective backgrounds are varied and diverse including business consulting, small business development, strategic development, sales, content design, management, and problem-solving.  The members of the team are African-Americans who all have had experience in applying for credit to purchase homes, cars or cash to invest in a business.  One member of the team owned a business previously and understands the challenges that business owners face from generating enough sales to covering payroll and operations. Another member of the team worked as a marketing consultant to small businesses. That experience allowed her to interview business owners to understand their business in order to assist them. In addition to understanding their business, she also learned of their struggles navigating the siloed resource providers across the city and the frustrations associated with it. Finally, I am well suited to deliver this solution.  I have witnessed how the lack of access to cash can stifle a business’s growth or cease it to exist.  Our collective experiences have equipped us with the tools to successfully deliver this solution. 

We are applying for the Truist Foundation Inspire Awards because the opportunity to not only receive funding to improve and scale our Cash Continuum solution but also to participate in the five-month tailored support program run by MIT Solve and the Truist Foundation will be invaluable to our small organization.  Our operating budget does not include funds that provide a member of our team to access the level of training, program development, and resources available from MIT Solve.  The ability to participate in the cohort would tremendously improve our operations and provide us with the tools to accelerate and scale our solution.  Further, the entire organization and the businesses we serve will be positively impacted by our ability to gain access to the tools, solutions, resource partners and network of mentors and partners.

I am interested in benchmarking with other non-profits to learn how to pitch to investors and creative fund-raising strategies. I am also interested in learning how to more effectively use various marketing and communication mediums to maximize organizational exposure and also how to target potential funders. Measuring and communicating programmatic impact is another area of interest.  I would like a partner to share best practices and methods of data compilation and impact reporting for stakeholders. Lastly, I am interested in a technology solution partner to assist our organization in identifying the most effective operational and program delivery systems and solutions for us. As a small non-profit, I am interested in learning to maximize our operational efficiency using technology and streamlined processes while being fiscally responsible. 

I would like to partner with business consulting firms that conduct economic, industry, or technology research and studies. I would like to work with those firms to conduct research studies on business sectors or industries in Memphis, Tennessee, and the mid-south.  Based on the findings, the data could be used for public policy or to spur economic growth.