Agenda - Council - 09/13/2022 - Laserfiche WebLink

Home

services).217 Approximately 22 percent of all minority -owned business fell into the hardest hit industries compared to 13 percent of nonminority-owned businesses.218 Although disparities in annual revenue are not a direct indication of a business's ability to weather an economic downturn, they do highlight other disparities that make it more challenging for these businesses to survive the effects of the pandemic. Black -owned startups, for example, face larger challenges in raising capital, including securing business loans.219 Summary of the Interim Final Rule and Final Rule Structure Summary of Interim Final Rule: As discussed above, small businesses faced significant challenges in covering payroll, mortgages or rent, and other operating costs as a result of the public health emergency and measures taken to contain the spread of the virus. Under Sections 602(c)(1)(A) and 603(c)(1)(A), recipients may "respond to the public health emergency or its negative economic impacts," by, among other things, providing "assistance to ... small businesses." Accordingly, the interim final rule allowed recipients to provide assistance to small businesses to address the negative economic impacts faced by those businesses. A "small business" is defined as a business concern or other organization that: (1) Has no more than 500 employees or, if applicable, the size standard in number of employees established by the Administrator of the Small Business Administration for the industry in which the business concern or organization operates; and 217 D. Lei, and Alvaro Sanchez. 2020. What Small Businesses Will Be Impacted by COVID-19? Federal Reserve Bank of Philadelphia. philadelphiafed.org/covid-19/covid-19-equity-in-recovery/what-small-businesses-will-be- impacted. 218 Lucas Misera, An Uphill Battle: COVID-19's Outsized Toll on Minority -Owned Firms, Federal Reserve Bank of Cleveland (October 8, 2020), https://www.clevelandfed.org/newsroom-and-events/publications/community- development-briefs/db-20201008-misera-report.aspx. 219 Robert Fairlie, A Robb, D Robinson, Black and White: Access to Capital among Minority -Owned Startups, NBER Working Paper 28154 (November 2020), https://www.nber.org/papers/w28154. 144