How LISC NYC Recognized, Responded to and Supported BIPOC Small Businesses During the COVID-19 Pandemic
4.04.2022
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LISC StoriesLISC NYC Voices
It has been two years since the COVID-19 pandemic struck, and the ripple effects continue to wreak havoc on the social fabric and operations of many small businesses in New York City. These small companies faced many challenges before the pandemic, including difficulties with capital access, business management, and other operational needs. The public health policies that have been implemented to curb the spread of the COVID-19 virus in New York City have only deepened those challenges and left many small businesses struggling to survive.
To address this critical situation, LISC NYC has helped small businesses impacted by the COVID-19 pandemic in three ways: recognition of the issues, response, and ongoing support.
Our Recognition of the Issues
When the COVID-19 pandemic was declared a public health crisis in the United States, government at all levels attempted to respond by deploying relief resources such as the federal Paycheck Protection Program (PPP) to help small businesses who were forced to shut down or curtail their operations. However, these efforts proved to be either insufficient or unable to reach the most vulnerable and neediest small businesses owned predominately by minorities, women, and immigrants. Many small businesses, particularly those operated by Black, Indigenous and People of Color (BIPOC) owners, were frustrated, confused, and lost in trying to tap government support.
Community-based organizations throughout New York City with deep connections to and knowledge of small businesses in their neighborhoods played a critical role in addressing these issues by helping them to navigate complicated relief systems and access critical resources. For example, four community-based organizations in the Bronx, Upper Manhattan, and Queens who had been participating in LISC NYC’s Commercial Corridor Challenge (Corridor Challenge) quickly pivoted to meet the needs of small local businesses struggling to survive the City’s mandated shut-down. The Corridor Challenge was launched in 2016 to strengthen and revitalize business corridors to form better places for existing and new businesses to thrive, bring foot traffic, and preserve the unique culture of neighborhoods. In response to the pandemic’s unprecedented and unanticipated impact on commercial corridor businesses, all four community partners immediately recognized the need to quickly shift their focus and help local businesses adapt to rapidly changing conditions.
The four partners were Chhaya CDC in Jackson Heights, Queens, Community League of the Heights (CLOTH) in Washington Heights, Upper Manhattan, Davidson Community Center in Morris Heights, The Bronx, and Mosholu Preservation Corporation (MPC) in Norwood, The Bronx. Each organization had a deep understanding of their local commercial corridor needs and responded with strategies tailored to neighborhood conditions and culture. For example, Chhaya transformed an annual neighborhood street festival into a virtual cultural event that attracted over 3,000 attendees (a 50% increase in attendance over the in-person event); CLOTH helped a neighborhood book store to host virtual book readings and artist talks; Davidson distributed Personal Protective Equipment (PPE) supplies along with safety protocol signage to neighborhood businesses; and MPC helped small businesses connect with customers during the shutdown by deploying neighborhood car service companies to deliver goods to residents.While these responses demonstrated the critical role that community organizations can play in addressing emergency conditions on the ground, LISC NYC recognized that additional resources and relief for BIPOC-owned small businesses across New York City would be needed.
Our Response
In order to secure flexible grant resources for small businesses, LISC NYC, along with LISC’s National office, approached numerous corporations and foundations for support in the Spring and Summer of 2020. In a few short weeks, LISC NYC raised enough funding to launch the LISC NYC Small Business Relief and Recovery Fund, which made direct cash relief grants of $10,000 available to micro-enterprises owned by BIPOC and women entrepreneurs. The relief grants could be used to cover ongoing business operations, equipment needed to adapt to new conditions, back rent, and other expenses.
Our experience in responding to previous disasters and economic downturns had demonstrated the critical role of community-based organizations in helping people and businesses to navigate complicated and confusing emergency relief systems. Therefore, as part of the LISC NYC Small Business Relief and Recovery Fund we also raised funds to support community-based organizations to provide technical assistance to small businesses.
By early Fall of 2020, the LISC NYC Small Business Relief and Recovery Fund was launched to support 112 BIPOC owned micro-enterprises in 35 priority neighborhoods that health and economic indicator data showed were disproportionately impacted by COVID-19. Additionally, LISC NYC identified and supported 16 community-based organizations to assist eligible small businesses to apply for relief grants. LISC NYC made sure that the network of 16 community-based organizations included at least one local partner in each borough. The 16 local community partners collectively identified nearly 200 eligible small businesses and helped them apply for the funds.
Through these efforts, by the end of 2020, 112 BIPOC small businesses were selected by LISC NYC for relief grants. Furthermore, these BIPOC small businesses were connected to wraparound ongoing technical assistance and business development support through the 16 community organizations and a network of Business Solutions Centers operated by the NYC Department of Small Business Services (SBS).
The 112 small businesses that received direct grant relief were able to not only leverage the much-needed funds to sustain their operations but also retain nearly 400 jobs across the five boroughs. Nearly three-quarters (73%) of the relief fund grantees were BIPOC small businesses that operated restaurants, personal care services, and retail, which were among the hardest hit sectors.
Our Ongoing Support
Heading into 2021, LISC NYC continued supporting BIPOC small businesses by securing additional resources from corporate funders such as MetLife, Verizon, Uber, and Olay. BIPOC small businesses were able to tap into direct relief funds that ranged from $2,500 to $10,000. This resulted in an additional 134 BIPOC small businesses who received direct relief grants from LISC.
LISC NYC also expanded our efforts to support the critical role of our network of 16 community-based partners, also known as business development organizations (BDOs). These BDOs offer ongoing unique, tailored technical assistance and direct business development counseling to small businesses in their catchment areas. LISC’s support for this network of BDOs was made possible by generous grants from the Nielsen Foundation, Visa Foundation, Synchrony Foundation, MetLife Foundation, Verizon, and the New York Community Trust. This funding has enabled our BDO partners to offer workshops, counseling, business development, access to financing and other technical assistance to BIPOC small businesses.
In addition, in partnership with the Macquarie Group Foundation, LISC NYC co-hosted a virtual Relaunch Academy Day in May 2021 for the 112 BIPOC small business grantees supported by the LISC NYC Relief and Recovery Fund. Macquarie, an international financial consulting firm and the lead funder of the Relief Fund, provided employee volunteers to assist grantees with workshops on the basics of business profit and loss statements and leveraging social media. These topics were of high interest to many of the relief fund grantees as they were beginning to reopen their businesses and retool their operations in light of the ongoing effects of the pandemic.
In early Fall of 2021, LISC launched the Verizon Small Business Digital Ready program in partnership with Verizon and Next Street. On this online platform, small businesses can access personalized learning modules, receive expert coaching, and participate in incentive activities to support their business growth in this digital era. Verizon has set an ambitious goal of reaching 1 million small businesses, nationally, through its digital-ready platform by 2030. LISC NYC and our growing network of BDO partners are positioned to play an integral role in not only meeting this goal but, importantly, strengthening many BIPOC small businesses by supporting their growth and continuity.
March 2022 marks two years since the COVID-19 pandemic began to severely disrupt everyday life in New York City. LISC NYC knows that the pandemic only exposed the pre-existing conditions of severe vulnerability and lack of equity for BIPOC small businesses throughout New York City. Our strategy for addressing these underlying conditions is to continue to assist small businesses with access to capital and technical assistance in order to enable them to not only survive the effects of the pandemic and economic downturn but to expand and thrive.
