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Impact Investing, Blockchain, and Crowdfunding

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Journal of Financial Planning. September 2018 - 10 Questions
​William Michael Cunningham on Impact Investing, Blockchain, and Crowdfunding
Interview by Carly Schulaka

WHO: William Michael Cunningham
WHAT: Economist, impact investing specialist, founder of Creative Investment Research
WHAT'S ON HIS MIND: “Any finance professional in the U.S. should learn how to code in blockchain.”

See: https://www.onefpa.org/journal/Pages/September-2018%20-%2010-Questions.aspx

Feedback on “How to Finance a Black Women-owned Business in 2018”

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We recently held a series of webinars designed “to help black women business owners discover various ways to land capital.” The webinars, titled, “How to Finance a Black Women-owned Business in 2018” were held on July 18th, August 10th and August 24th.

The feedback from the webinars is good. Eighty five percent (85%) of the respondents to our customer satisfaction survey found the webinar useful. Seventy one percent (71%) rated the webinar excellent.
















Of the forty or so women on the webinar (and they were all women) forty two percent (42%) have just started looking for business financing. Fourteen percent (14%) have been looking for business financing over the past one to six months, and twenty eight percent (28%) have been looking over the past six to twelve months. Fourteen percent (14%) have not attempted to get financing yet, but are simply exploring options.


















This dovetails with the recent efforts we have observed in this sector. The table below lists some of the new funds that…

Number of New Black Businesses "Jumps" by 400%

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recent survey found that African American businesses are increasing at the fastest pace ever. Survey results suggest the 400% rise occurred from 2017 to 2018. Conducted by Guidant Financial and LendingClub, survey data was collected via email sent to "more than 2,600 business owners and entrepreneurs. It found that 45% of all small business in the country were owned by minority ethnic groups in 2018." Earlier (2015) survey results put this number at 15%. Charts below show some of the survey data: Survey sponsors noted that "the highest volume of African American entrepreneurs lives in Texas, followed by Georgia, California, Florida, and North Carolina." (During our discussion at the Denton Black Chamber of Commerce Dinner in March, 2014, we noted the elevated profile of Texas with respect to African American businesses: https://youtu.be/E_AgImRM_Wk. Also see: https://youtu.be/fSGje7OaLpk ) While we are encouraged by these initial survey results, we urge caution.…

Asian Banks....again...

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We have been tracking Asian Banks for some time. See: Bullish on Asian Banks Originally posted on the Street Insight section of thestreet.com 2/28/2006 4:35 PM EST and Still Bullish on Asian Banks

Recently, there has been renewed interest in this sector. We commented for an article by S&P analysts Kelsey Bartlett and Carolyn Duren posted Monday, 02 July 2018 11:52 AM ET, some of which is reproduced below:

Deals are heating up among Asian-American designated banks, with two of the nation’s prominent institutions announcing deals since April.

In its second deal since 2013, Hanmi Financial Corp. is acquiring Houston-based SWNB Bancorp Inc. Meanwhile, RBB Bancorp is making a play for Brooklyn, N.Y.-based First American International Corp. — its third deal since 2013. The two Los Angeles-based banks remain interested in diving into new markets with high populations of Asian Americans, management said.

Hanmi expects the combined entity to have $5.7 billion in total assets, while RBB an…

Black Wealth Discussion at SCLC Annual Conference, by Papa Owusu, Franklin and Marshall University, Impact Investing Intern,

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On Friday, July 13, 2018, the Southern Christian Leadership Conference (SCLC) held a panel discussion on the state of black wealth in America. The panelists were Samantha Sanders, Director of Government Relations at the Economic Policy Institute, David D. Rixter, Principal  of HCR Consulting L.L.C. and William Michael Cunningham, Founder, Creative Investment Research. The panel was moderated by Kevin B. Kimble, Esq., DC Bureau Chief of SCLC.

The panelists discussed a myriad of reasons for the pervasive black-white economic gap to mark the 50th anniversary of the Kerner Commission that identified racism as the reason for the black-white economic gap. A key point made by the panelists is that, beginning with slavery, laws and the justice system  have and continue to support structures that undermine the progress of Blacks in the United States. This, along with employment discrimination, has resulted in the lack of progress in reducing the economic disparity between black people and whit…

Probability of Fed Rate Hike is 90.53%

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Our model of Federal Reserve policy estimates the probability that the Federal Reserve will increase interest rates. Our July 3rd Summary shows that the probability of the US Federal Reserve increasing the federal funds rate is 90.53%.

While our model needs to be adjusted, as noted below, we remain confident in these results.

The first forecast adjustment element are the previous hikes. Recall that in March, 2018, our model predicted a rate increase with a 92.3% probability. The rate increase following the June 12 – 13 FOMC meeting decreases the probability of subsequent rate increases, if only slightly (90.53% vs 92.30%). One precedent for the Fed raising rates in this manner came in 1994, during the Clinton Administration, when the Fed raised rates from February to May at a 25 basis point pace. Interest rates increased from 3.25% to 4.25% in 4 months (FED, 2018).

Each successive rate increase adds less to policy impact. Given that the Fed has  raised interest rates two times so far in …

Webinar - How to Finance a Black Women-owned Business in 2018

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Maggie Lena Walker was the first female bank president of any race to charter a bank in 1902. Black women have continued down this path of entrepreneurship. According to one report, "the number of businesses created by black women in the United States alone is up more than 460% over the last 20 years, making them the fastest growing group of entrepreneurs in the nation." Of course, we've known this for some time, and have the track record to prove it. We launched MinorityFinance.com in 1998 and noted that 65% of the inquiries from the site came from Black women. While others have come along after our launch, we remain active and at the forefront. See: Small Business Financing, Black People and Venture Capitalhttps://youtu.be/gXGBEUoxHHs The key issue then, and now, is money: "according to the Diane Project, black female founders are only able to raise an average of $36,000 in venture funding, while start-ups owned mostly by white males have received on average $1.3…

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