Black Women Business Owners Need Advisors' Attention: Danielle Byrd Thompson

But she said that, in her experience, Black women who own businesses tend to be different from other clients who own businesses, and from Black women who do not own businesses.

A Black woman who owns a business faces complicated questions about financing, health benefit plan sponsorship, disability benefit plan sponsorship, retirement plan sponsorship, succession planning, and business continuity planning and insurance that rarely come up for salaried clients, she said.

Meanwhile, because Black women are less likely than other business owners to have access to family money or experienced business owner relatives, they have a harder time getting information, and often have a more difficult time working with lenders and other financial services providers, she added.

She said the nature of the typical business owned by a Black woman is another factor: Many Black women own businesses in the service sector, such as health services providers, child care providers, beauty salons and restaurants.

The Pandemic

The COVID-19 pandemic has been catastrophic for Black Americans.

In the second quarter of 2020, for example, the pandemic increased the death rate of white people with household incomes over 400% of the federal poverty level by 9.2% over the year-earlier level.

The pandemic increased the mortality rate of Black people in that income category by 47%.

The pandemic has affected Thompson's own life, she said, noting, "I've had numerous clients who passed away because of COVID."

She did not hear of many Black business owner clients tapping cash-value life insurance for business financing during the pandemic. Instead, she said, she took calls from clients who wanted more insurance.

She has found this to be an especially good time to talk to Black business owners about the need to insure their businesses against the risk that they could become disabled.

The disability planning conversation is particularly important for clients who want to keep service sector businesses open during pandemic surges, she said.

Danielle Byrd Thompson. (Photo: Equitable)