ARP: Lincoln NE, Supporting Small Businesses

Thanks to the American Rescue Plan, hundreds of small businesses in Lincoln received up to $60,000 to pre-pay six months of rent or mortgage. In total, the city spent $7 million on the program. 

Mayor Leirion Gaylor Baird’s Small Business Stabilization Grants program targeted businesses with up to 50 employees. To ensure smaller businesses were not left out, $2 million of this funding was set aside to help businesses with five or fewer employees. 

As of late February 2022, more than 250 small businesses received a grant, impacting more than 2800 employees, according to the mayor’s office. Daryl Dickerson, owner of Sandy’s bar, is one of the small businesses that was helped. 

Dickerson said the grant “could not have come at a better time for us.” The COVID-19 Omicron wave “knocked us back quite a bit and made us seriously question the viability of our bar, or any bar for that matter, when the general public just doesn’t feel comfortable being in tight spaces with a crowd of people.”

Mayor Gaylor Baird said she is proud that the American Rescue Plan helped Lincoln support “small businesses that were disproportionately impacted” by the pandemic. She noted that those businesses “staff over 2,800 community members as employees.“

Update

Data shared by Gaylor Baird’s office shows the program has spent $7 million to support 263 small businesses, impacting more than 3000 employees. 

Additionally, Gaylor Baird invested $1.2 million in utility grants to cover a year of electric and water payments for small businesses. As of February 2023, Lincoln has helped 160+ businesses, which will not receive a utility bill for the rest of the year, allowing them to hire additional staff and complete maintenance that was deferred during the pandemic.

A Model Job-Training Program

This week, Labor Secretary Marty Walsh visited San Antonio, where he praised NewDEALer Mayor Ron Nirenberg’s Ready to Work program. The $200 million program has a goal to train 28,000 low-income residents for better paying jobs by the end of 2025. The program formally launched in May, and so far nearly 6,000 people have applied. During his visit, Secretary Walsh said “We need to be more intentional about investing in workforce development, and we need to be doing it with cities…Programs like Ready to Work should be replicated around the country.” Read more about the program here, and also check out the Labor Department’s Good Jobs Initiative, which is seeking to improve job quality nationwide.

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Lansings Equity Matrix to Provide Data to Improve Representation

Problem

The Economic Policy Institute identified that black and Latinx employees are underrepresented in “professional” jobs that pay more on average than other jobs. For example, white people make up 61.4% of the workforce, while black people make up 12.8%, Latinx 17.4%, and AAPI 7.4%. Within the next decade, eight of the ten major categories of professional occupations are expected to see above-average job growth. Therefore, if existing disparities in employment patterns persist, racial disparities in professional occupations are expected to widen.

Solution

Lansing Mayor Andy Schor launched the Equity Matrix, an online dashboard that monitors the racial and ethnic demographics of neighborhoods and the city’s workforce. The objective of the Equity Matrix is to decrease racial disparities in addition to assisting the City in planning for the present and future. The data will be used by the City of Lansing to help create strategic improvements in policies, practices, programs, and procedures, including recruitment and hiring practices and tracking progress in regards to diversity.

 

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Preventing Discrimination against the Natural Hairstyles of Black Women

Problem

For generations, black hair has been unfairly deemed “unprofessional” in public settings like classrooms and the workplace. The study, published in the Social Psychological and Personality Science journal, titled “The Natural Hair Bias in Job Recruitment,” identified that wearing natural hairstyles has a negative impact on black women’s career opportunities. For example,  black women with natural hairstyles were unjustly regarded as less professional, and were less likely to be suggested for a job interview than black women with hairstyles typically worn by white women.

Solution

The CROWN Act, sponsored by Sen. Raumesh Akbari, stands for “Creating a Respectful and Open World for Natural Hair,” and would make it illegal for employers to discriminate against natural and protective hairstyles like braids, locs, and twists. Any employees who believe their right to wear their hair naturally has been violated may submit a complaint with the Department of Labor and Workforce Development.

The bill was approved by the Tennessee legislature, making it the first statehouse in the rural South to pass legislation barring discrimination towards natural hairstyles. 

 

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Working to Grow Minority-Owned Businesses in Boston

Problem

A report commissioned by the City of Boston revealed disparities in the city’s procurement spending. The report showed that women-owned businesses and businesses owned by people of color were disproportionately underrepresented and only account for 8.5 percent of total contract 2.5 percent of total contract and procurement spending respectively. Only $9.4 million, representing 0.4 percent of total spending, went to black-owned businesses, whereas $18.2 million, representing 0.8 percent, went to Latino-owned businesses. In addition, Asian-American-owned businesses received $22.7 million, or about 1.1 percent.

Solution

Boston Mayor Michelle Wu recently filed a home rule petition that expands access to city contracts for Women and Minority Owned Business Enterprise (WMBEs). In 2020, only 1.2% of the city’s 2.1 billion contracts went to Black and Latinx owned businesses. The mayor’s groundbreaking proposal would significantly reduce barriers for WMBEs and make it easier and cheaper for them to apply. Once approved by the City Council, the petition will be sent to the Massachusetts Legislature and the Governor as part of a larger project aimed at expanding vital minority businesses and wealth-building opportunities. Check out more details on the proposal, which demonstrates Mayor Wu’s continued commitment to equitable economic development and removing barriers for disadvantaged communities.

New Future of Work Report in Massachusetts

A new report published by Massachusetts’ Future of Work Commission, which is chaired by NewDEAL Leader Senator Eric Lesser, calls for the state to double the rate at which it is training skilled workers. Lesser authored legislation to create the Commission based on his experience chairing the NewDEAL Forum’s Future of Work policy group, and he hopes the report will serve as a roadmap for his state to adapt and create economic opportunities in a rapidly changing world. Among the main takeaways from the report are the need for more funds for certificate programs and short-term training options, more flexible transportation options for those who are working hybrid or unusual schedules, additional funding for affordable housing stock, and an increased focus on diversity and inclusion in the workforce, including increased language training for immigrants. For more, see the Commission’s final report here.

ARP: Boston MA, Preparing Workers for the Jobs of Tomorrow

Mayor Wu announced more than half a million dollars in American Rescue Plan funding for four organizations to provide training for green and mobility jobs. The city approved a four-fold increase in funding for its green jobs program, increasing the budget from $1 million to $4 million. The majority of that funding – $3 million – comes from the American Rescue Plan. These specific grants will target populations hit particularly hard by the COVID-19 pandemic, including individuals experiencing homelessness, residents recently released from incarceration, and women and people of color from under-represented neighborhoods. The Mayor’s office plans to have two cohorts per year, gradually increasing the number of participants in each cohort to 60. Cohort participants also receive workplace development training as well as a number of certifications, including from OSHA and conflict and de-escalation training.

Update

In June, Boston launched PowerCorps, a program to train individuals for green jobs that pay a living wage. The six-month training program began with a 21-person cohort. All the participants receive a $550/week stipend as well as work clothing and transportation to job sites. The first cohort achieved a great deal of both meaningful work and professional development: assisted 87 acres of public land by removing 284 bags of invasive material and planted 61 trees and pruning 32; earned three college credits from UMass Mount Ida in Arboriculture; participated in mock interviews and completed 16 hours of financial literacy courses.

All 21 members of the inaugural PowerCorps program graduated in December 2022, and have a new green job or are enrolled in additional job training.

Impact Testimonies:

  • “The reason I joined PowerCorps was to find out who I was personally and
    make an impact on my community.” – Iman T.
  • “I’m glad I was able to pave the way for other women in forestry. In this
    industry where women are underrepresented however, I’m glad I felt
    empowered to use my voice. Thank you PowerCorps for allowing me to be
    heard.” – Jelaine F.
  • “I knew that I wanted to find a job that would let me have my hands in the
    dirt and benefit this community.” – Tafari W.
  • “This was the first thing I’ve seen through to completion since high school. I
    have to say the experience has been ethereal!” – Erica M.

ARP: Beaverton OR, Investing in a Equitable Economic Recovery

Mayor Lacey Beaty established a relief fund for small businesses with 25 or fewer employees using nearly $1.9 million in funds from the American Rescue Plan. The funding has helped 297 local  businesses with a variety of costs including utilities, inventory, and rent. Of the businesses receiving assistance, more than half of businesses receiving grants (53 percent) were women owned, and two-thirds were BIPOC-owned.

“We really wanted to focus our ARP allocation on sustained relief for our community,” Beaty said. “We knew by supporting our local, small businesses that we were taking great steps towards an equitable recovery. Beaverton is proud of our thriving business community, and we are hopeful that with this first round of ARP investments, we continue to support both existing and emerging business owners.”

Update

Beaverton recently released a detailed impact report demonstrating the success of their business recovery grant program, which has now distributed over $6 million to 544 existing and emerging small business owners throughout the pandemic. Nearly 71% of all grants went to businesses to 5 employees or less, 64% of the grants went to BIPOC-owned businesses, and 53% of the grants went to women-owned businesses. In addition to the report, the city developed an interactive dashboard and website to tell the story of the program’s success to the

Impact Testimonial:

“The last few weeks of March were very frightening for us, not knowing how we would pay rent, our two employees, and other expenses due at the end of the month. We applied for the Beaverton grant & were approved within the week, what a relief,” said Vivian Lee, a business owner & Beaverton grant recipient.

Public Banking Boosts Disadvantaged Businesses

In Philadelphia, NewDEAL Leader Councilmember Derek Green has been working for years on an innovative proposal to establish a city-run public bank in his city. In December, his proposal to establish the Philadelphia Public Finance Authority finally won committee approval and is set to be brought before the full Council early this year. If approved, the bank would elevate women and minority-owned businesses by making it easier for them to secure a loan and reducing racial disparities in business ownership. Read more about Councilmember Green’s proposal here, which took finalist honors in last year’s NewDEAL Ideas Challenge.

Reducing Recidivism with Employment

This week, NewDEAL Leader Michigan Lt. Gov. Garlin Gilchrist joined leaders from government, business, and law enforcement to announce a new proposal for a  “Job Court” pilot program. The program is a creative solution to decrease recidivism rates by making employment opportunities available for defendants accused of low-level, nonviolent crimes. The $5.5 million investment would give 450 eligible defendants good paying jobs and transferable career skills that will help them find jobs after their sentence. To read more about how this proposal could reduce recidivism and give Michiganders a second chance while also helping businesses staff up, read the article here.

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