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Newark’s Municipal Council voted last week to invest $2 million in the New Jersey 40 Acres and a Mule Fund (NJ FAM Fund).

The first-in-the-nation investment fund, which aims to reduce the wealth health and social disparities that exist with the Black and Latinx communities when compared with the general population, makes equity and debt investments in New Jersey-based Black and Latinx businesses.

The NJFAM Fund is spearheaded by Newark Mayor Ras Baraka and co-sponsored by the mayors of Paterson, Trenton, Camden, Atlantic City, East Orange and Irvington. A main objective is to give these business owners access to more capital and resources. The overall goal is to raise $100 million to invest in businesses and projects that can scale in an effort to reduce those disparities.

This $2 million contribution by Newark will be earmarked specifically for Brick City investments.

“While the racial wealth gap is a major national issue, it especially impacts Newark,” said Baraka. “Black and Latinx businesses have always faced more roadblocks than their counterparts and the pandemic only made things worse. These investments will be a tremendous tool for them in Newark, and I am incredibly grateful for the generous support of our municipal council.”

Funding commitments have been made by several companies and celebrities, such as Bank of America, AT&T, Panasonic, RWJ Barnabas Health and Newark native Shaquille O’Neal.

The first project for the fund is a partnership with United Community Corp. to build homes on 10 city-owned parcels in the Central Ward to transform that neighborhood and provide high-quality homeownership on the block.

More plans for Newark

Newark Mayor Ras Baraka announced Sept. 27 that the Newark360 Master Plan – a 10-year blueprint for the Brick City’s physical development – was unanimously approved by the Newark Planning Board. Click here to read more about it.