BRONZEVILLE — When Pat Trapp learned the city’s only black-owned bank was holding an event this week to bring small businesses like hers together, she knew she wanted to be there.
Such banks — like Illinois Service Federal Bank — know the hardships like the ones she faces and are likely to want to help out, Trapp and other business owners said.
The bank was founded in 1934 during an era when when it was impossible for people of color to obtain mortgage loans due to blatant racism and segregation. Today, there are two branches, the Bronzeville location at 4619 S. King Drive and a branch at 8700 S. King Drive that opened in 2000.
The bank became the only black-owned bank in Chicago when Seaway, which was created in 1965 to counter discriminatory lending on the South Side, failed and was closed by federal regulators and sold to a Texas bank earlier this year.
Illinois Service Federal Bank also has had problems but reorganized last year and is doing better after a Ghanian family invested $9 million in its operations last year, the Tribune reported.
In honor of National Mom & Pop Business Owner’s Day, which celebrates the hard work of small family-owned businesses, the bank Wednesday held free workshops and a networking session for about two dozen small business owners. They addressed ways to make a business financially stable, how to grow a business and increase its value, as well as marketing and advertising.
Among counties, Cook County ranks first in the nation in the number of black-owned businesses, according to U.S. Census data.
Most recent U.S. Census data from 2012 reported there were a total of 291,007 businesses in Chicago. When looking at only sole proprietors, black-owned businesses represent approximately 26.8 percent, or 78,010 of all businesses. Among firms with paid employees, that number drops to 4.3 percent, or 2,056 out of 48,499. On a yearly basis, these black-owned businesses create one million jobs with annual revenues totaling $187.6 billion.
Some 90 percent of the bank's assets are from black-owned businesses. The bank has loaned 25 percent of its total portfolio to small and black owned-businesses.
That is encouraging to Trapp, who launched Made With Love "Peau Douce" Moisturizing Baths nine months ago. She said the event Wednesday was very helpful.
“I thought it was very successful and very nice,” she said, adding that the marketing workshops had a lot of valuable information. “I thought that was an extra added bonus.”
Pat Trapp launched her moisturizing bath balls and scrub business almost a year ago. [DNAinfo/Andrea V. Watson]
Co-authors Betty Muhammad and Lewis C. Baskins brought their first book “Uncover The Missing Piece: How To Dissolve Resentment and Avoid Anger.”
Both authors said the event was needed because black entrepreneurs need to support one another and the black-owned bank is still important in the community today.
Co-authors Betty Muhammad and Lewis C. Baskins brought their first book to the event. [DNAinfo/Andrea V. Watson]
Lishelle Bishop is a real estate broker with Kaylis Realty Inc. She said that attending the event was beneficial because not only was she able to help those who are seeking a brick-and-mortar location, but she connected with people who can help her fulfill one of her dreams.
“The event was a success for the first one,” she said, adding that she’d like to see more events throughout the year.
She said a black-owned bank is more likely to work with entrepreneurs like her.
“It’s very important to have a black-owned bank because, first, it’s black money, and they’re going to be more prone to giving us money for our small businesses as well,” she said.
“When you come to a place like this, they know our hardships because they know the struggle and they want all of us to succeed.”
Bronzeville resident Micah Smothers launched Popacorn Popcorn eight years ago with a gourmet popcorn food truck. He said that it’s no secret that black-owned banks are more prone to lending to small businesses than larger financial institutions.
He praised Illinois Service Federal Bank for its commitment to the community.
“I love this,” he said. “It’s just a good opportunity for small businesses to come out and network and so we need more of this.”
Monica Thomas, executive vice president for the bank, said this first event was a success and the bank looks forward to doing similar events like it. Since hers is the only black-owned bank left in Chicago, it’s important that the African-American community understand they have support.
“We decided what better way for us to show our value as a bank than to show the value of the small business owners who are in the community,” she said. “We have been in the community since 1934 and so it’s a hurdle and challenge for a minority bank to stay in business for that long. We are just so pleased that we’ve been able to be sustainable, stable, and now we’ve been recapitalized [and] there’s been change of ownership, all of which has made us stronger.”
