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The COVID-19 crisis has exacerbated challenges for small businesses, particularly Black-owned enterprises, due to inadequate federal relief efforts and limited research funding.

Cities must take action by analyzing business ecosystems, engaging anchor institutions in procurement shifts, strengthening business incubators, innovating financial products, and securing community benefits through policy change.

Five months into the COVID-19 crisis, small businesses, particularly minority-owned, continue to struggle. Federal relief efforts like the HEALS Act provide some support, but they fall short for very small businesses.

The RELIEF for Main Street Act advocates for direct funding through state and local governments, enabling faster and more equitable distribution. This approach, combined with reforms to existing programs, aims to ensure a more inclusive and sustainable recovery for small businesses.

Small businesses, especially those in majority-Black districts, face significant challenges due to COVID-19 and civil unrest. Long-standing issues like the underrepresentation of Black-owned businesses, their smaller size, and lower revenues have been worsened by the pandemic, highlighting the urgent need for support and revitalization.

Black-owned businesses make up just 2.2% of employer firms, despite Black people being 14% of the population. Efforts like Netflix’s $100 million commitment focus on capital access, but procurement opportunities must also improve. Existing diversity programs lack transparency, and better data and metrics are needed.

The persistent lack of wealth creation in African American communities underpins enduring social inequalities. Addressing this requires clear pathways to generational wealth creation and ensuring equity investments benefit, rather than exploit, these communities, forming the foundation of equitable community development.

As local and state governments begin reopening after COVID lockdowns, many small businesses, particularly Black-owned businesses, are struggling. This series of white papers analyzes the pre-COVID small business landscape and provides guidance for policymakers to stabilize and revitalize small business ecosystems in the aftermath of the crisis.

Black-owned businesses in the U.S. are smaller and concentrated in states with larger Black populations. To support growth, states should prioritize contracts for minority-owned businesses, improve regulatory support, and build ecosystems to help these businesses thrive long-term.

The COVID-19 crisis has hit small businesses, especially those owned by people of color, hard. Data from the 2018 Annual Business Survey shows Black-owned businesses are underrepresented, with smaller size and lower revenues. These businesses struggled to access relief programs like PPP due to systemic issues, highlighting the need for a targeted, structural response to support recovery.

The U.S. COVID-19 response revealed critical failures in its federalist system, leaving state and local governments financially strained. With declining tax revenues and essential services at risk, federal intervention is crucial.

The RELIEF for Main Street Act, introduced by Senator Cory Booker and Congressman Dan Kildee, aims to provide $50 billion in direct assistance to cities, counties, and states for small business relief, particularly targeting micro and minority-owned businesses affected by COVID-19.

With bipartisan support and backing from 100 mayors, the Act emphasizes flexibility and local control in recovery efforts.

The COVID-19 crisis has devastated small businesses, especially on Main Street. Many face collapse despite relief efforts, threatening local economies. Main Street Regenerators can help by revitalizing commercial districts, supporting businesses, and stabilizing rents.

The COVID-19 crisis has highlighted the need for workforce development. The Relaunching America’s Workforce Act proposes $15 billion to retrain workers, building on the TAACCCT program. The act focuses on community colleges and high-demand sectors, with increased investment, racial equity, and strong coordination needed for effective recovery.

The COVID-19 crisis has severely impacted small businesses, with the Paycheck Protection Program (PPP) providing relief but facing challenges like unequal distribution and restrictive terms. Local relief funds have been helpful but underfunded, underscoring the need for more federal support.