Negro Factories Corporation of the Universal Negro Improvement Association and African Communities League, was the "finance arm",[1] capitalized for $1 million,[2] offering stock shares, at $5 each,[2] for African-Americans to buy,[3] to provide loans to establish black-owned businesses.[4]
The Negro Factories Corporation was intended to "build and operate factories in the big industrial centers of the United States, Central America, the West Indies and Africa to manufacture every marketable commodity."[5] It was an effort for economic development within communities of African descent. Businesses included a chain of grocery stores, a restaurant, a steam laundry, a tailor and dressmaking shop, a millinery store and a publishing house. The UNIA had difficulty keeping the businesses going, and by the mid-1920s, many had closed.[5]
In 1921, Negro Factories Corporation became insolvent.[6][7]
"Garvey appointed inexperienced people to run organizations because he valued loyalty over competence".[8]
"Financial mismanagement of these organizations led to his indictment on mail fraud charges in 1922. He was convicted and sentenced to Atlanta's federal penitentiary in 1925."[9]
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