- A new partnership aims to create long-term solutions for Latino and Black-owned small businesses impacted by the COVID-19 pandemic by encouraging consumer support. Hispanics in Philanthropy (HIP), Ureeka and The Flo Lab launched the campaign, "Together We Win"/"Juntos Ganamos," June 24.
- The partnership between HIP, a transnational organization, and Ureeka, a platform that connects Black, Latino and women small business owners to peers, mentors and coaches, will leverage their networks and resources. Ureeka also has a collaboration with the PowerUp Fund. Flo Lab, a business advisory group, works on specialized marketing strategies.
- A June 2020 report by the National Bureau of Economic Research found that 41% of Black-owned and 32% of Latino-owned businesses were forced to close in recent months. "There is no magic in the formula to help Black and Latino-owned small businesses succeed," the organizers of "Together We Win" said in a statement. "What is needed are accountable individuals, corporate and organization decision-makers investing time, money and energy into creating a long-term, sustainable impact."
The COVID-19 recession has been "disproportionately devastating" to minority and women-owned business enterprises, according to research from the Institute for Women's Policy Research, and others.
The Paycheck Protection Program (PPP) to aid small businesses and nonprofit organizations was included in the Coronavirus Aid, Relief, and Economic Security Act signed into law March 27. A second round of PPP funds, $310 billion, was added April 27. However, a low percentage of Black and Latino business owners who filed for PPP loans have received their requested financial relief. A poll conducted by Global Strategy Group for Unidos and Color of Change, nonprofit civil rights advocacy groups, released May 18 found that 12% of Black and Latino business owners received the amount they applied for. And 26% said they received a portion of what they had requested to stay afloat.
In June, a revision, the PPP Flexibility Act, reduced the proportion of a PPP loan that a small business must put toward payroll from 75% to 60%. A provision of the PPP Flexibility Act extended the forgiveness period from eight to 24 weeks. The deadline for small businesses to apply for a PPP loan was June 30.
But as federal assistance to small businesses continues to evolve, programs like HIP, Ureeka and The Flo Lab's "Together We Win" seek to financially assist Latino and Black-owned businesses in economic recovery through philanthropy, community and consumer-based initiatives.