$100 million “Newark Fam Fund’ for Black and Latin business owners

Mayor Ras J. Baraka and co-partners announced the launch of the “NWK FAM Fund” (Newark 40 Acres and a Mule Fund), with Reverend Al Sharpton standing in support of the Fund and the economic justice it will provide. The press conference took place in the Municipal Council Chambers in City Hall.

The new investment vehicle aims to combat and reduce social and economic inequalities resulting from systemic racism, as well as put capital directly in the hands of Newark Black and Latinx business owners who need it the most and who suffer from the greatest barriers. Backed by prominent Black and Latinx investors, as well as leading corporate and philanthropic institutions, the fund seeks to raise $100 million in investible capital. The program, the first of its kind, has so far been promised $2 million.

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 worse racial wealth gaps in the nation. The objective of the fund is to close these gaps by providing Black and Latinx business owners with a more level playing field with their competitors.

The NWK FAM Fund, co-managed by Invest Newark (the City’s economic development corporation) and New Jersey Community Capital, seeks to raise $100 million, with $10 million in hand by the end of 2020. AT&T, Shaquille O’Neal, Panasonic, Carlos Medina, Nelson Mullins Law Firm, and New Jersey Community Capital, PSEG, and Popular Bank are the first of the investors and corporate partners.