* 32 percent of Latino community businesses closed during the pandemic
Ben and Virginia Ali opened a restaurant in 1958 with just $5,000 to open Ben's Chili Bowl, a small fast food business in the Cardozo neighborhood of Northwest Washington, D.C., which is more alive today than ever.
Virginia Ali recalled during a press conference held by Ethnic Media Services that throughout the more than 60 years of the business' life, nothing has been as difficult and as painful as going through the COVID-19 pandemic, which led its owners to wonder if their life's work could survive.
However, when it became known that this long-established small business was on the verge of closing, help began to pour in from all over, from donations of up to $25,000 from various organizations to the Payment Protection Program (PPP).
"We had the opportunity to access the PPP in a second round because the money ran out so quickly. It certainly helped us keep our staff, but we modified schedules and relied on food delivery apps, plus we decided to improve our e-commerce program and have plans to become a franchise," noted Virginia. She clarified that the idea of closing never crossed her mind.
In that regard, Everett Sands, founder of the Southern California lending company Lendistry and a major partner of companies in underserved communities affected by the COVID-19 pandemic, noted that small businesses are the most resilient to any type of catastrophe.
"I am optimistic about small businesses. I think that even though we have lost a lot of wealth and a lot of small businesses, in the next couple of years we will see those small businesses come back," he said.
The above, he said, despite the fact that according to an April 2020 study by the University of California, Santa Cruz, 41 percent of African-American small businesses closed, and 32 percent of businesses in the Latino community.
The entrepreneur explained that according to Ink Magazine, 2021 is the number one year for small business start-ups in the US.
He called on small business owners to seek resources to get ahead and stay afloat with their staff while the country's economic recovery is achieved.
He noted that the U.S. Small Business Administration (SBA) is offering PPP loans originated only by participating community financial institutions, including certified development companies (CDCs).
As well as community development financial institutions, CDFIs, and minority lending institutions, MDIs, until May 31, 2021 or until funds are exhausted.
"I would encourage any small business to apply right away because we are anticipating that the money will run out before May 31. And it's very possible that today will be the last day," he said.
And is that, he explained, early indications show that somewhere between 60 and 70 percent of the companies requiring financial support, are from minorities "which is devastating considering all the work that all of us have been doing to get the word out about the PPP since March 2020."
"We have another week and so we will keep pushing to get as many companies as possible across the finish line," he stressed.
He added that while it is true that SBA funds are depleted, there are other resources from the same administration, such as the COVID-19 Economic Injury Disaster Loans (EIDL), which provides economic relief to small businesses and non-profit organizations that are currently suffering a temporary loss of income.
This is in addition to the revitalization of Restaurants, an emergency fund that provides assistance to restaurants, bars and other food service providers affected by the pandemic, as well as SBA grants and debt relief for operators of closed venues that provide emergency assistance for entertainment venues.
Sands clarified that there are those who have received support for their businesses and have spent it on things other than keeping their small businesses afloat; however, he explained that it will be up to the state to thoroughly investigate these events and eventually sanction those who have incurred in a lie to obtain the resources.
This, he added, should not be a reason for people to become discouraged and stop seeking the federal, state or local support needed to move forward with their small businesses.
At the time, Congressman Ro Khanna, representing California's 17th Congressional District, noted that the PPP was originally misdirected and therefore did not sufficiently reach communities of color.
Given this, he noted that he was a supporter of a bill pushed by Vice President Kamala Harris that would set aside funding for Latino, African American and Asian American entrepreneurs, small business owners who would have the opportunity to expand.
"I want to make sure that this money is distributed with racial and gender diversity in mind ... that while it's not about setting a quota of participants, it's enough to reach our goal of equity," he said.
"People are going out to restaurants again, the virus is losing, the economy is gaining," he added.
In the case of women, she pointed out, it does not mean that they do not want to return to their jobs, it is simply that many of them have children to take care of and do not have spaces where they can take care of them.
"The reason they are not going to work is that we don't have the necessary infrastructure for childcare. We don't have a sufficient plan to integrate women into the labor market."
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