Tips For Black Business Owners From The CEO Of A Black-Owned Bank

With interest rates at a 22-year high, Michael Pugh says Black business owners crunched for cash should look to community-based financial institutions for help.
“Learn more about them; we have a very different scope [regarding loan arrangements],” Pugh, the CEO of New York-based Carver Federal Savings Bank, tells Forbes of community banks. “We have to make sure we extend our arms and get out there and tell people what they need to know to start achieving that generational wealth.”
August is National Black Business Month, and ForbesBLK is highlighting the theme with special discussions about sustaining and expanding Black firms. Based in Harlem, Carver is one of the largest Black-run financial institutions in the U.S., celebrating its 75th anniversary in 2023. The bank is named after George Washington Carver and trades on the NASDAQ. Pugh was named CEO in 2012.
Black businesses generated $206 billion in annual revenue and supported 3.56 million U.S. jobs in the last decade, according to the non-profit Brookings Institution. However, though Black people comprise 14.7% of the U.S. population, the community represents 12.4% of sole proprietorship and only 2.4% of employer businesses. Brookings said the stats show “disparities” that hold back Black entrepreneurs and “restrict economic opportunities for entire communities, which in turn impacts local prosperity.” Brookings also notes that access to sufficient capital remains a lingering issue for Black-owned businesses. That causes entrepreneurs to rely on personal funds and credit cards to finance operations.
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[@maliksaleem612]

Small businesses are the backbone of this country. Support all Black Owned Businesses every month.

[@DrFinancialLiteracy]

Amen!

[@NurseNekesCoconutCakes]

I didn’t know August was Black Owned Business Month! 🔥🔥🔥

[@wealthyscientist3197]

same here my favorite month besides july..my birthday

[@m.k.s.7417]

@@wealthyscientist3197it is my "Birth_Month".

[@m.k.s.7417]

@@wealthyscientist3197 my b.-day, is on_AUGUST; the [very] 29th. (M.K.S.).

[@DrFinancialLiteracy]

Amen!

[@alainportant6412]

Good now we know how to avoid filth and scams

[@katyarnold-ji8sv]

I am a black american born citizen. I will always support our black american owned businesses.

[@originaloilsbyangela3707]

I am just finding out about “Black Business Month “ during August. I will definitely look forward to next year’s event. AWESOME ❤️

[@m.k.s.7417]

Watching (it/this); in-Feb. (2024).

[@DrFinancialLiteracy]

Amen!

[@SK-yg2vw]

Smart and eloquent guest! Why would Forbes ask him such terrible questions though?

[@DrFinancialLiteracy]

Amen!

[@hollandbook]

I loved that you asked the CEO of the bank what Generational Wealth really minds! I think many of us do not understand the true meaning and the value of it. Passing down wealth is easy once you're die. But Generational wealth comes with a strong responsibility and appreciation to the families, who understand the value of economic wealth. #charmainnehollannd

[@KAB1313]

Listening to conversation like this gives me hope.

[@DrFinancialLiteracy]

Amen!

[@JobePower]

Such a professional discussion #Forbes 👍🏾

[@DrFinancialLiteracy]

Amen!

[@WestSportt-lk2ls]

I love this first time I am hearing it after being denied capital borrowing to support my black small business 10 times out of

[@DrFinancialLiteracy]

Amen!

[@Mutatedchromosomes333]

We need a black owned social media platform.

[@Rflows100]

Racism spoken in droves is still racism. Seek Jesus

[@PascalH9191]

We need black owned Hospitals, political action committees, black on think tanks, black on hedge funds, venture capitalists, etc

[@DonSuave]

Fanbase is black owned

[@DrFinancialLiteracy]

Amen!

[@kougin13aller]

Check out Yafreeka & many others it's a couple....

[@mlradcliffe3955]

This interview was inspiring

[@jonathandantzler1206]

Thanks to both of you for this well-informed decision. I learned a lot.

[@DrFinancialLiteracy]

Amen!

[@BrigetteWaltershield]

I am regretting not investing in digital assets ever since but still grateful i kept money in the money market. With about $200k maturing soon, i plan investing in the market. What coin should I look into as a newbie to safely grow my money?

[@CamdenVanderlaan]

How can I reach this adviser of yours? because I'm seeking for a more effective investment approach on my savings

[@CamdenVanderlaan]

I just googled her and I'm really impressed with her credentials; I reached out to her since l need all the assistance l can get. I just scheduled a caII.

[@JIN-u6t3t]

My advice for who wants to grow financially this year, invest. Saving is good, but investing elevates your finances. Thanks to my financial advisor, my portfolio is thriving, and l'm proud of last year's decisions.

[@AlexaXander-q2m]

Awesome! 👌

[@haiderbedla3376]

Just a while after Kanye said they won’t let a black man own a bank, you do this

[@NurseNekesCoconutCakes]

Right!🔥

[@wealthyscientist3197]

bro we got to stop listening to entertainers frfr..we love and respect them but only listen to the actual business men that are also entertainers

[@RMIStore]

Ceo isn't owner though

[@PascalH9191]

A major black that is on the level of WFC, MS, GS, JPM, BAC, they will try to prevent that!

[@Joseph-lj8bb]

Not an owner company is publicly traded.

[@professorsherman8251]

Thank you for this

[@DrFinancialLiteracy]

Amen!

[@TrainRegardless]

Love this

[@DrFinancialLiteracy]

Amen!

[@shomkittling5376]

Greatness

[@DrFinancialLiteracy]

Amen!

[@GRINDETHIKSMIXTAPESHOW]

We always romanticize struggle maybe that is why struggle 😅

[@markj6681]

That's a bar

[@travis10466ny]

Why Michael didn't say in this interview he was leaving the bank the end of September?

[@DrFinancialLiteracy]

Amen!

[@iammahalieka]

I didn't know Black Business Month was a thing. SMH 🤭

[@DrFinancialLiteracy]

Wow. I know.

[@travis10466ny]

With Carver bank why the Market cap only 12.57M? How are they growing? The stock been down for over 10 years. These are not good signs

[@blackcatalyst3132]

Asking the real questions lol did they mention the life raft that JPMorgan and other larger banks sent them for a hefty equity interest? There goes that self determination we need 🤣

[@nocheapdopamine725]

I think its indicative of the small bank/big bank paradigm. Carver only has 7-8 locations and only $700M AUM, + being a CDFI + not having a traditional investment banking arm. They’re just not going to be as profitable as a national bank, even size adjusted. That makes their stock not as desirable as one of the larger banks, since they’re not solely profit-driven. If they were solely profit-driven they wouldn’t invest 80 cents on the dollar in their local community. So its just tradeoffs ig, still a great firm.

[@travis10466ny]

@@nocheapdopamine725 market cap at this time is 7 55M 😮‍💨😮‍💨😮‍💨

[@DrFinancialLiteracy]

Amen!

[@DrFinancialLiteracy]

@@blackcatalyst3132 Amen!

[@williamholloway5789]

Yes open an account we need 1000 people to put 1000 each thats a million but yet u put money 💴 n banks that won’t lend money to ya and don’t like u…no reason why we can’t We have 320,000 millionaires just put a $1000 in forget about interest rates the bigs don’t pay u either that’s 320 million that’s real capital now we can build businesses build our communities let’s do it

[@ennellesperance1186]

💯🙌🏿👏🏿✊🏿

[@DrFinancialLiteracy]

Amen

[@m.k.s.7417]

Hi guys.

[@DrFinancialLiteracy]

Amen!

[@dandrespruill1165]

Let's talk about black business in year 2024! reply

[@MrNitPic]

I just LOVE that “Financial First Responders!!” 😮‍💨😮‍💨🤌🏾🤌🏾✊🏾🔥👌🏾👌🏾👏🏾👏🏾

[@kennethsmith2030]

felt that as well my brother 🌌🌌

[@DrFinancialLiteracy]

Amen

[@travis10466ny]

why Carver bank not profitable?

[@DrFinancialLiteracy]

Amen!

[@geraldlofton]

This is a Bunch of BS, they don’t LOAN REAL MONEY 💰 stop the 🧢 Sad!!!!!!!! 😢

[@stardommansion6773]

Ceo carver bank

[@stardommansion6773]

Financial services Capital one citizens bank

[@stardommansion6773]

Relationship with banker

[@stardommansion6773]

Black owned bank

[@stardommansion6773]

Publicly traded institutions

[@stardommansion6773]

Black owned construction

[@hirambond1432]

Another step towards erasing racism! Let’s have special videos for black business owners. Great way to integrate folks.

[@Rflows100]

Quite the opposite. You could say now it's worse because it's self inflicted racism. To call yourself 'black' as the core point of identity reflects pride and foolishness. Look only to King Jesus!

[@DrFinancialLiteracy]

Amen!

[@JohnDoe-dj8kb]

This is a CEO not some dam Mary K and t-shirts being sold by Laquesha and June bug. Imspire to be legendary!!

[@DrFinancialLiteracy]

Amen!

[@reasonablelogic4971]

Stop separating poor black and white folk. We face the same challenges in businesss.

[@Shadow-gd4zl]

im black and do agree but im guessing this was supposed to be a specific video focusing on a single issue

[@williammcdaniel4888]

Not true

[@kimberlyowens5496]

We both face challenges but they aren't the same. Let's just look at how our homes are appraised. We have to 'sanitize" our homes of blackness just to get a fair appraisal. When white families start experiencing this SAME treatment then we have the same challenges.

[@thamizama5904]

White challenges have a far better chance of being sorted compared to ours. They have a better chance to get loans than us and many other benefits.

[@misunderstoodkj]

Not true at all! Heck! I wish that was the case. 🥴

[@collaboratingvoicesfoundat9943]

🙌🏾🤎✊🏾👏🏿🖤

[@DrFinancialLiteracy]

Amen!

[@narimansabah8655]

حلم💫💫😍💫😍😍💫💫😍

[@santabanter]

Can’t listen to this nonsense

[@nolabae]

Good, keep scrolling.

[@DrFinancialLiteracy]

@@nolabae Amen!

[@velmano9191]

I hope them black-owned businesses aren't defaulting on them loans...LOL.

[@RSVPrr]

Check the states on tax evasion, it's not Black businesses running that crime

[@DrFinancialLiteracy]

Amen!

[@tombo552001]

OMG Black Owned Business Month lol what about every one else business.

[@NoSauceBoss-sm6zx]

Forbes 90% show white businesses via fortune 500 companies, what's the problem?

[@staceya.harris2700]

@@NoSauceBoss-sm6zxDon’t worry about internet racist trolls they’re only here to sow seeds of confusion.Just keep straight ahead don’t get distracted.

[@NoSauceBoss-sm6zx]

@@staceya.harris2700 your right

[@iles663]

This is racist

[@BB-gs5rs]

Black this black that racist much?

[@RSVPrr]

Tell that to the "White house". I'll be honest with you, Caucasians, or whatever you are, u r on the extreme side off hypocrisy

[@RSVPrr]

"White House" racist much? U people call a government house the "White House" and u had Jim Crow. Let Black people have something too. Stop fighting them. Stop being so evil

[@NoSauceBoss-sm6zx]

Not really

[@Rflows100]

​@RSVPrr this is evil too. You'll realize it eventually but if you want to know now, it is straight up racism. To call people 'Caucasian' and 'black' as their identity is a low low move

[@DrFinancialLiteracy]

@@NoSauceBoss-sm6zx Amen!