Businesses need help to survive

Op/Ed & Letters 4 • May 13, 2020

Without more help, blackowned businesses might not survive the pandemic

EUGENE CORNELIUS, JR.

TEWire - Black communities in the United States not only represent a disproportionate share of casualties from coronavirus, but they have also been deeply affected by the economic impact of the disease. Longstanding racial discrimination in economic and housing policy has increased their risk for exposure to the virus, as well as the resulting financial crisis.

The economic effects of the pandemic on black communities can be explained by several factors. Almost half of black-owned businesses are in industries - such as administrative and support services, health care and social assistance and retail - that are bearing the brunt of this pandemic. These industries not only pose a health risk because of the interaction between workers and customers, but they are also especially vulnerable to lower consumer demand due to social distancing measures.

Over 90 percent of small businesses in majority black communities hold cash reserves of fewer than 14 days, so they are more likely to run out of operating funds when customers stay at home. And the most recently available Federal Reserve data shows that black business owners are denied loans at twice the rate of white owners, so they are more likely to have trouble finding capital to survive the pandemic.

In the face of large-scale shutdowns caused by the COVID-19 crisis, there is a clear need for policies to support small business. But the spending programs passed by Congress thus far have ignored the challenges of capital access facing black-owned firms.

During the first round of funding provided for small businesses,

The LEGACY NEWSPAPER Vol. 6 No. 20

Mailing Address P.O. Box 12474 Richmond, VA 23241

Office Address 105 1/2 E. Clay St. Richmond, VA 23219 The LEGACY welcomes all signed letters and all respectful opinions. Letter writers and columnists opinions are their own and endorsements of their views by The LEGACY should be inferred. The LEGACY assumes no responsibility for unsolicited material.

borrowers seeking Paycheck Protection Program loans were required to work with banks already participating in the US Small Business Administration's (SBA) primary loan program, thereby excluding firms that worked with smaller community banks. Moreover, Congress allocated just $10 million to the Minority Business Development Agency. According to the Center for Responsible Lending, these conditions may have prevented 95 percent of black-owned businesses from receiving loans.

The second round of small business funding assistance specifically set aside $60 billion for community banks and credit unions that are traditionally a key source of capital for minority-owned firms. However, the measure did not stipulate that minority-owned businesses would have priority access to those funds. Addressing these short-term lending gaps is crucial to ensuring that black-owned businesses will stay in business long enough to survive the pandemic. But we must also plan for a long-term recovery that emphasizes inclusion. This will require us to remove historic inequities through targeted support for black-owned businesses and

(continued on page 5) black workers.

We can begin by taking three key steps:

First, federal and state governments should enact robust credit enhancement programs for minority borrowers. These programs provide incentives for banks to lend to businesses in low- and middle-income areas, allowing more firms to remain open and refrain from laying off workers. In states with existing loan programs that provide credit enhancement, treasury officials should make loans more flexible, easier to access and increase loan guarantees. In others, where credit enhancement programs do not yet exist, treasury officials should create loss reserve funds and collateral support mechanisms, as well as a marketplace to pair pre-qualified lenders with borrowers in need of working capital. State governments can also authorize one-to-one matches for philanthropic funding to expand the pool of available capital.

Second, credit enhancement programs should also be used to support place-based investment, with a priority on housing and infrastructure in low-income areas. For example, officials can increase loan guarantees to

Congratulations 2020 graduates!

Education is the cornerstone to achieving the dreams and goals we have for ourselves. Congratulations to the graduates across the nation for completing their studies at all levels, and especially to the graduates of the L. Douglas Wilder School of Government & Public Affairs for completing their degrees.

This year marked only the second time that I have not been physically present for a VCU Wilder School graduation ceremony, the first was due to Wilder School business travel to Nigeria. I was pleased to deliver the keynote address for the virtual commencement exercise; my brief remarks to the graduates can be accessed here.

Knowing the uncertainty facing the graduates today, I know from experience, they will overcome. My graduating class from VUU, in the early 50’s, also faced our share of challenges and adversity.

We must double down in addressing the inequities in our communities and across the nation, that have persisted throughout our history. We must demand leadership and representation for all of the people from those so charged with those responsibilities.

We must demand what is right, criticize what is wrong to ensure a government of the people, by the people, and for the people. I am confident that the 2020 graduates will fully participate in the polity.

Stay tuned.

L. Douglas Wilder Former Va. Governor & Former Richmond mayor

‘Reckless and cruel”

Gov. Ralph Northam’s announced plan to begin “Phase 1” of reopening Virginia as early as May 15 is reckless and cruel.

It is not at all clear that the metrics favor relaxing the stay-at-home restrictions. But setting aside the metrics, we are simply unprepared for even a partial reopening.

Virginia’s testing rate for COVID-19 is one of the worst in the country, ranking 48th among states. We have yet to hire and train the thousands of people necessary to perform the task of contact tracing and ensure appropriate outreach is made to marginalized communities.

With no vaccine, widespread testing or established system for contact tracing, we are choosing to jeopardize the health and lives of the 70 percent of the population who would need to contract the virus before any sort of “herd-immunity” would be effective. Forging ahead when you know or should know that an act is likely to cause harm is the definition of reckless.

This plan will also inflict disproportionate pain on communities of color due to systemic inequities that preexisted the virus. The plan will force low-wage workers, a large percentage of whom come from lower-income black and Latino communities, to choose between their health — even their lives — and paying the rent or buying groceries. Infection and death rates are highest in these communities across the country.

In our state capital of Richmond, 15 of the 16 deaths from COVID-19 were black residents. In Fairfax County, where only 17 percent of the population is Hispanic, 56 percent of all confirmed cases are Hispanic. Inflicting pain, suffering and fear without legitimate purpose is the definition of cruelty.

Until we can reliably deliver basic public health protections and care — especially to marginalized communities — and take aggressive steps to minimize the cruel and inequitable effects of the pandemic, Virginia must stay closed for business.

Angela Ciofli Executive director, Legal Aid JC

(from page 6)

support construction of housing for individuals earning from 80 percent to 200 percent of the local average median income, or offer special collateral guarantees for minorityowned businesses with revenues under $5 million to invest in longterm assets.

Third, place-based investments should emphasize environmental quality in low-income and minority communities through special support for projects with higher air and water quality standards -including the remediation of outdated water infrastructure. Using federal and state loan guarantees to fund these investments will simultaneously support improvements to the health of minority populations and reduce their vulnerability to future health crises.

As we look beyond the pandemic, these steps are crucial for ensuring the American dream is within reach of minorities across the country. By addressing fundamental inequities in our economic system, we can begin to pave a new avenue toward a more prosperous future.

Cornelius is senior director for the Milken Institute Center for Regional Economics. He previously served as a senior official in the U.S. Small Business Administration. This commentary first appeared on CNN.

The LEGACY LEGAL, EMPLOYMENT, ANNOUNCEMENTS, FOR SALE, SERVICES

Serving Richmond & Hampton Roads 105 1/2 E. Clay St. (office) Richmond, VA 23219 804-644-1550 (office) • 800-783-8062 (fax) ads@legacynewspaper.com

CU00012453- Procurement 0512 HAMPTON SOLICITATION

CITY OF HAMPTON

Thursday, June 4, 2020 at 10:00AM ET ITB 20-51/CLP Lynnhaven Lake Water Quality Retrofit

For all forms or additional information, see our web page at https://www.hampton.gov/bids-contracts or call (757)727-2200.

Minority-Owned, Woman-Owned and Veteran Businesses are encouraged to participate.

1 in 4 Virginians is missing money.

Look for the Unclaimed Property List in Next Week’s Paper!

Ad Size: 4.9 inches (2 columns X 2.45 inches)

1 Issue (May 13) - $53.90 Rate: $11 per column inch

Includes Internet placement

Please review the proof, make any needed changes and return by fax or e-mail. If your response is not received by deadline, your ad may not be inserted.

REMINDER: Deadline is Fridays @ 5 p.m.

Staying home saves lives.

Get the dental care you deserve with dental insurance

from Physicians Mutual Insurance Company. It can help

cover the services you’re most likely to use —

Cleanings X-rays Fillings Crowns Dentures

Preventive care starts right away Helps cover over 350 services Go to any dentist you want – but save more with one in our network No deductible, no annual maximum

Call today for all the details. 1-855-401-3274

Thank you for your interest in applying for opportunities with The City of Richmond. To see what opportunities are available, please refer to our website at www.richmondgov.com.

EOE M/F/D/V

Call now to get this FREE Information Kit! dental50plus.com/legacy

l

Product not available in all states. Includes the Participating Providers and Preventive Benefi ts Rider. Acceptance guaranteed for one insurance policy/certifi cate of this type. Contact us for complete details about this insurance solicitation. This specifi c offer is not available in CO, NY; call 1-888-799-4433 or respond for similar offer. Certifi cate C250A (ID: C250E; PA: C250Q); Insurance Policy P150 (GA: P150GA; NY: P150NY; OK: P150OK; TN: P150TN). Rider kinds B438/B439. 6154-0120

Here’s the information you requested on Dental insurance FIRST-CLASS MAIL

l

Advertise here 804-644-1550 ads@legacynewspaper.com

May 13, 2020• 7

PUBLIC AUCTION of Unclaimed Vehicles Monday, June 8, 2020

200+/- IMPOUNDED AUTOS, LIGHT TRUCKS &

MOTORCYCLES SOUTHSIDE PLAZA DRIVE-IN 1 Issue - $37.40

Rate: $11 per column inch Includes Internet placement

Please review the proof, make any needed changes and return by fax or e-mail. If your response is not received by deadline, your ad may not b Ok X_________________________________________

Auction will include the vehicles listed below plus many others: Gates open at 9:00 AM Auction begins at 10:00 AM

2003 MAZDA PROTÉGÉ JM1BJ245331117285 2001 VOLKSWAGEN JETTA 3VWSK69M91M203556 1990 JAGUAR XJ6 SAJHY1749LC606279 2003 BUICK LESABRE 1G4HP52K03U174914 2010 BAODIAO SCOOTER L2BB03304AB526265 1997 CHEVROLET S10 1GCDT19X3V8171283 2003 HONDA XR650R JH2RE01213M400758 2004 MERCURY MOUNTAINEER 4M2DU86W84ZJ37702 1973 DODGE TITAN M39CN3S052908 2007 AUDI Q7 WA1AY74LX7D046393 2007 CHRYSLER SEBRING 1C3LC56K67N527195 2003 CHRYSLER TOWN & COUNTRY 2C4GP54L83R134941 1989 GMC SIERRA 1500 1GTDC14H3KE513201 2007 PIAGGIO FLY 50 ZAPC446B574000305 1986 OLDSMOBILE CUTLASS 442 1G3GK4791GP368502 1966 CHEVROLET CORVAIR 105376W122162 1996 HONDA CIVIC 1HGEJ6673TL046632 1994 CADILLAC FLEETWOOD 1G6DW52P4RR706357 1992 CHRYSLER LEBARON 3C3XA5639NT278873 2004 BUICK LESABRE 1G4HP52K64U113889 1995 HONDA PRELUDE JHMBA8240SC000181 2006 FORD FOCUS 1FAHP34N16W113957 2006 BUICK LACROSSE 2G4WD582861222909 2005 INFINITI QX56 5N3AA08C25N806564 2011 HYUNDAI SANTA FE 5XYZG3AB3BG005727 1998 KIA SEPHIA KNAFB1211W5722358 1999 FORD EXPLORER 1FMZU34E8XUA31028 2002 CHEVROLET IMPALA 2G1WF52E529367329 1993 FORD RANGER 1FTCR14U9PTA16163 1990 FORD F150 1FTEX15N3LKA27522 1992 DODGE RAM B250 2B7HB21Y7NK115116 2019 GENUINE ROUGHHOUSE 50 RFVPMP20XK1017187 2007 NISSAN SENTRA 3N1AB61E07L609178 2003 TOYOTA COROLLA 1NXBR32E33Z171391 2007 FORD ESCAPE 1FMCU93137KA51495 2004 HONDA CIVIC 1HGEM22974L072417 UNK HOMEMADE TRAILER UNK 2002 DODGE GRAND CARAVAN 2B8GP74LX2R543271 2002 MERCEDES-BENZ C 230K WDBRN47J22A259941 UNK UTILITY TRAILER VA278198TR 2003 SATURN ION 1G8AG52F73Z177928 2004 CHEVROLET COLORADO1GCDS136048160825 1998 MERCURY GRAND MARQUIS 2MEFM75W2WX635203 2004 KIA OPTIMA KNAGD128845337162 1997 LEXUS ES 300 JT8BF22G3V0072524 2005 MERCURY MONTEGO 1MEHM42185G600752 2009 CHEVROLET TRAVERSE 1GNER23D29S121451 1994 SATURN SL2 1G8ZJ5579RZ326745 2004 MERCEDES-BENZ C240 WDBRF61J14E018675 2011 CHEVROLET IMPALA 2G1WF5EK6B1157953 1994 HONDA CIVIC 1HGEG8650RL051028 2001 BUICK LESABRE 1G4HP54K61U284019 2001 PONTIAC GRAND AM 1G2NV12E91M558286 2002 HONDA CIVIC 2HGES26712H577703 2006 FORD FREESTAR 2FMZA51696BA57224 2005 LAND ROVER FREELANDER SALNY22235A465830 2004 LAND ROVER DISCOVERY SALTW19434A841715 1998 CHEVROLET 1500 1GCEK19M7WE110311 Ok with changes X _____________________________

REMINDER: Deadline is Fridays @ 5 p.m.

SEIBERT’S is now accepting vehicles on consignment! Reasonable Seller’s Fees. 642 W. Southside Plaza Dr. Richmond (804) 233-5757 WWW.SEIBERTSTOWING.COM VA AL # 2908-000766