Advantage Conference focuses on financing minority-owned businesses, 'underbanked' households

This year's Advantage Conference brought numerous financial institutions under one roof to hear challenges minority-owned businesses face while securing capital.

The Capital City Chamber of Commerce hosted the two-day conference that included panel discussions on developments coming to Tallahassee and entrepreneurship training opportunities.

However, the central theme was financing and a need to do more to bridge the gap small businesses face while securing funds for their respective operations.

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It also was a call to action for banks and credit unions to review their practices and understand limitations some potential clients may have and what can be done to reach 7% of households in the United States that are considered "unbanked" or "underbanked," meaning no one in the household has a checking or savings account at a bank or credit union. These people use alternative financial services such as person-to-person apps like CashApp, payday lenders, car title loans, check cashing facilities and pawn shops.

In Tallahassee, 5.9% of residents are unbanked. According to the Chamber, the average unbanked person spends 10% of his or her income on alternative financial services fees, amounting to $40,000 over a lifetime.

The Chamber announced a new partnership called "Bank On Tally," in conjunction with the city of Tallahassee's Human Services Division and Leon County Human Services to ensure residents and businesses can be financially healthy.

It's part of a national Bank On network of dozens of coalitions hoping to help residents navigate the consumer finance marketplace.

"It's a great opportunity to match the needs of the community with those financial institutions that want to make a difference in the community, and those nonprofits and government segments that are already making a pretty big impact," said Patrick Eichholtz, director of Bank On Florida.

Capital City Chamber of Commerce President Katrina Tuggerson said there’s always been an underlying need for financial resources for small businesses and the COVID-19 pandemic compounded that need.

The timing of the conference, she said, comes as financial strain is apparent throughout the small business community. One major hurdle is the lack of access to capital, she said, referencing the closure of new and long-time restaurants and small businesses.

“We are going through hard times,” Tuggerson said. “We see smaller businesses that are going into deals with landlords. When they make a certain dollar amount, the landlords get a certain percentage of their revenue. That’s happening right here in our community.”

Tuggerson said the Chamber recognized the growing need to fill the financial gap, adding partnerships with the school district, local government and financial institutions will offer vital connections for potential resources and relationships.

The Chamber’s leadership encouraged and received strong support from members of financial institutions. Tuggerson said the conversation about access to capital can’t happen without their participation.

“Without the financial institutions being in the room, looking at their own account standards and where their redlining stands, it gives them an opportunity to say, ‘What is the culture like in my financial institution? Is it welcoming? Is it welcoming to all people? Is it welcoming to small businesses?””

Contact TaMaryn Waters at tlwaters@tallahassee.com or follow @TaMarynWaters on Twitter. 

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This article originally appeared on Tallahassee Democrat: Capital City Chamber conference focuses on financing challenges