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NEWARK, NJ Some of New Jersey's largest cities have a plan to turn the tables on "one of the worst racial wealth gaps in the nation" by boosting Black and Latinx business owners.

Recently, officials in Newark, Orange, East Orange, Paterson, Camden, Trenton, Irvington, and Atlantic City announced they're teaming up on a statewide program that's been dubbed the New Jersey Forty Acres and a Mule Fund (NJ FAM Fund).

The goal? To put a massive infusion of capital directly in the hands of New Jersey's Black and Latinx business owners and communities.

According to the New Jersey Institute for Social Justice, the median net worth of New Jersey's white families is $309,000, while the median for New Jersey's Latinx and Black families is just $7,020 and $5,900, respectively one of the worst racial wealth gaps in the nation.

Hopefully, the NJ FAM fund can narrow those gaps by leveling the financial playing field, its supporters say.

Organizers are trying to raise $100 million to power the program, via charitable contributions, investments from financial institutions and donations from corporate partners.

The fund will redistribute the wealth with a variety of financial mechanisms:

While the fund targets Black and Latinx-owned businesses, it also aims to boost those that serve customers in a neighborhood with a high population of minority residents. Some possible uses include creating affordable housing, rehabilitating residential/commercial properties, building community facilities and launching retail stores.

Learn more about the program and see eligibility details here.

40 ACRES AND A MULE

Why "40 Acres and a Mule?" According to organizers:

The NJ FAM fund grew out of a similar concept announced in Newark in September 2020, the Newark 40 Acres and a Mule Fund. The program has already seen support from celebrities such as Shaquille O'Neal and the Rev. Al Sharpton, as well as a roster of high-profile corporate sponsors.

In addition to O'Neal a former NBA star who has invested in other real estate projects in Newark some of the fund's first investors include AT&T, Panasonic, Carlos Medina of the Hispanic Chamber of Commerce of New Jersey, the Nelson Mullins Law Firm, New Jersey Community Capital, PSE&G and Popular Bank.

Since then, Newark's program has seen increasing attention as the coronavirus pandemic continues to wreak havoc on businesses across the Garden State.

"The past year has been extremely difficult and put a spotlight on the racial wealth gap that exists in our country, but we cannot pretend that this problem is something new," said Bernel Hall, managing partner of the New Jersey FAM Fund.

"We look forward to expanding this initiative as partners come to the table," Hall said.

Those partners include:

Newark Mayor Ras Baraka "While the racial wealth gap is a national struggle, it is especially salient in Newark. Minority businesses have always faced more roadblocks than their counterparts and the pandemic has only worsened the issue. The NJ FAM Fund aims to help these businesses reach their full potential in these tumultuous times. These investments will be a tremendous tool for the minority business community in Newark and we are incredibly grateful for this generous support."

East Orange Mayor Ted Green "When the difference in median net worth between White families and Black/Latinx families is nearly 200%, that is much more than a social disparity. That kind of gap is representative of the inequitable financial policies that have kept Black and Latinx businesses and families behind the national curve for decades. This initiative is how we start to bring balance to the communities that have been devastated the most. This is how we make amends and bring generational wealth into our communities."

Trenton Mayor Reed Gusciora "We're proud to stand with Mayor Baraka and other city leaders who understand that an equitable business environment is crucial to maintaining the diverse identity of our urban communities. Despite decades of institutional and financial obstacles, many of our Black and Latino residents still put in the hard work to become entrepreneurs. We need programs like the one announced today to help make sure those historical challenges are not an impediment to their long-term success."

Camden Mayor Frank Moran "The NJ FAM Fund will help level the playing field for the Black and Latinx businesses not only in Camden but in urban areas across New Jersey. The small business community has traditionally been the foundation of our local economy. As elected officials, it is our objective to identify resources which can not only help support but foster economic growth. Since the onset of the pandemic, so many of our Black and Latinx businesses have been impacted and are now facing dire circumstances. The NJ FAM Fund represents an outstanding collaborative effort to support these struggling businesses while shrinking the racial wealth gap."

Paterson Mayor Andre Sayegh "There is strength in solidarity and I am honored to join forces with my conscientious colleagues to support this imperative initiative. We are mayors meeting the moment and our Latinx and Black businesses need our leadership now more than ever."

Atlantic City Mayor Marty Small Sr. "I'm honored to join Mayor Baraka and other Urban Mayors throughout The State for The FAM Fund. During these trying times this will assist African American and Latino business as we restart and recover our economy. The great city of Atlantic City looks forward as a participating municipality to support current business and bring new industries to diversify our economy."

Irvington Mayor Tony Vauss "Although it is reported that minority owned businesses represent the fastest growing business sector in the U.S. economy, Black and Latinx business owners continue to face significantly more obstacles starting their businesses and maintaining growth. Our country's current economic crisis presents a significantly heightened challenge. Therefore, it made sense for us mayors of urban communities to work together to create the NJ FAM Fund in order to help the businesses that are the heart of our communities, Black and Latinx businesses."

Orange Mayor Dwayne Warren "On behalf of the City of Orange Township, I am excited to work with Newark Mayor Ras Baraka alongside other urban cities to help build up Black and Latino businesses. Determining how we invest our budget dollars in small businesses in our communities is one of the many initiatives underway as we move our state forward. This fund serves as a reminder of the work we need to continue to do to create equity in the business sector."

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8 NJ Cities Fight Wealth Gap With Black, Latinx Business Fund - Patch.com