year three report
201 9 2020 BOOSTANDBUILD.COM
welcome On behalf of KeyBank and JumpStart, we’re excited to share highlights from the third year of the KeyBank Business Boost & Build program in New York and Ohio. After a decade-long partnership between KeyBank and JumpStart, the KeyBank Business Boost & Build program was formed to advance our collective commitment to accelerate inclusive economic growth via programs focused on startup and small business support, resulting in meaningful job creation. In its first three years, the program catalyzed a groundswell of entrepreneurial support at the community level, solidifying collaborations amongst public, private, philanthropic and non-profit organizations, bolstering inclusive economic growth throughout New York and Ohio. As the KeyBank Business Boost & Build program was in place well before the pandemic, we
were able to quickly partner with others in New York and Ohio to respond to the serious setbacks experienced by small businesses. For example, the KeyBank Business Boost & Build program quickly mobilized $1 million in small business stabilization grants, helping to catalyze $12.5 million from our partners to support small businesses throughout the pandemic in 10 markets in New York and Ohio. We are particularly pleased 45% of these grants were made to Black and Female-led small businesses, as many of these firms were unable to access other COVID-19 relief resources. As a result, the KeyBank Business Boost & Build program has grown even stronger and we
are well-positioned to enter the fourth year of our partnership on solid footing despite the historic economic challenges posed by the pandemic. We trust this report provides insight to the impact our program has made on communities throughout New York and Ohio as we are steadfast in our commitment to accelerate the progress and impact of nearly 5,000 small business owners and startup entrepreneurs.
eric fiala
Head of Corporate Responsibility, KeyBank
ray leach
CEO, JumpStart
To learn more about the KeyBank Business Boost & Build program, visit www.boostandbuild.org To learn more about corporate responsibility at KeyBank, visit www.key.com/about The KeyBank Business Boost & Build program, powered by JumpStart, is a partnership between KeyBank and JumpStart. The initiative is designed to stimulate economic growth and workforce development by fostering small business success and is funded by the KeyBank Foundation and implemented by JumpStart. For more information on KeyBank products and services, please visit www.key.com. KeyBank is Member FDIC.
2
K EYBANK BUSINESS BOOS T & B U IL D
WHILE REVIEWING THIS REPORT
look for this icon FOR THE COMPLETE MULTIMEDIA EXPERIENCE
program overview KEYBANK BUSINESS BOOST & BUILD PROVIDES A RANGE OF PROGRAMS ACROSS DIFFERENT GEOGRAPHIES NORTHEAST OHIO: JumpStart provides high-impact business assistance for tech startups and small businesses and helps emerging young talent gain expertise and employment with local companies.
In 2017, KeyBank launched its $16.5 billion National Community Benefits Plan. This unprecedented fiveyear initiative was formed to drive investment for low to moderate income communities. That same year, KeyBank Foundation awarded JumpStart a fouryear, $24 million grant to fuel the KeyBank Business Boost & Build program. In year three, 2,253 entrepreneurs and small business owners received assistance and 568 individuals accessed new employment opportunities through the Emerging Talent Network, and the KeyBank Center for Technology, Innovation and Inclusive Growth.
OHIO: The KeyBank Center for Technology, Innovation and Inclusive Growth makes grants to organizations to accelerate the entrepreneurial success of women and people of color, and connects women, people of color and those in rural communities to career opportunities in growing small businesses. NEW YORK: Grants are made to local non-profit organizations fostering new collaborations and providing high-impact technical assistance to urban entrepreneurs and small business owners who have previously lacked access to these services.
YEAR THREE OVERVIEW
The startups and small businesses supported by JumpStart and its partners across Ohio and New York had a catalyzing impact on their communities.
$1.3B
$711M
OVERALL ECONOMIC IMPACT
FOLLOW-ON CAPITAL AND REVENUE RAISED BY ENTREPRENEURS
$604M
$201M
IMPACT GENERATED BY COMPANIES LED BY WOMEN
IMPACT GENERATED BY COMPANIES LED BY PEOPLE OF COLOR
Y E A R T H R E E R E P O R T • 2019- 2020
3
covid-19 response When the COVID-19 pandemic emerged, JumpStart worked with KeyBank and community partners to address immediate and ongoing business needs in a changing work environment. With small business and startup funding identified as the most pressing concern, JumpStart, in partnership with KeyBank, allocated $1 million and formed KeyBank Business Boost & Build stabilization funds in communities across New York and Ohio. This initial outlay leveraged $12.5 million in additional funding from other partners—for a total of $13.5 million available as grants for entrepreneurs. Grants from these stabilization funds have helped sustain livelihoods, protect jobs and support families throughout KeyBank Business Boost & Build communities. These funds provided immediate financial relief—in the form of help covering mortgage, rent, insurance and salaries—to business owners of color, women and those facing difficulty accessing federal relief funding. Grantees also received resiliency training, so they were better equipped to overcome
4
K EYBANK BUSINESS BOOS T & B U IL D
$13.5M GRANTED ACROSS OHIO & NEW YORK TO DATE
45% hurdles caused by COVID-19 and pivot, if necessary. In addition to this direct financial support, JumpStart and its partners provided remote technical assistance to help diverse small business owners access, review and submit PPE and PPP loan applications. We also made virtual resources and assistance available to small business owners through a dedicated COVID-19 website landing page and a webinar series. “This is a great story about the resiliency and commitment of our partner organizations,” says Tamika Otis, director, KeyBank Business Boost & Build Program powered by JumpStart. “Nobody could have planned for this pandemic by any stretch of the imagination.”
FUNDING GRANTED TO BLACK OR LATINX SMALL BUSINESS OWNERS
“But our partner organizations didn’t miss a beat. They quickly transitioned to all virtual programming. That was our immediate response: Even though we weren’t in the office, we still needed to support and serve entrepreneurs.”
$13.5M TOTAL FUNDS RAISED
$1M
$12.5M
AMOUNT CONTRIBUTED BY KEYBANK & JUMPSTART
ADDITIONAL FUNDS FROM PARTNERS
STARTUP / SMALL BUSINESS SUPPORT
Growing the tech-talent pipeline to boost jobs, opportunities and connections. KeyBank funding supported JumpStart’s work to build a diverse and robust tech-talent pipeline. JumpStart, in partnership with five Northeast Ohio community economic development organizations, hired a new Entrepreneur-In-Residence to identify Black and Latinx innovative entrepreneurs and connect them to resources and assistance in the tech ecosystem. JumpStart is also growing the talent pipeline by creating stronger pathways for commercialization and facilitating connections between technologies and institutional partners. KeyBank funding further helped secure three years of funding from Ohio Third Frontier, ensuring JumpStart’s work will continue. Since the launch of the KeyBank Business Boost & Build program, JumpStart and its partner organizations in Northeast Ohio have made a measurable impact:
1,798
high-potential startups & small businesses helped
3,983
jumpstartinc.org/ron
Leaders from the Economic Community Development Institute (ECDI), the Hispanic Business Center, The Presidents’ Council, The Urban League of Greater Cleveland, and JumpStart selected Ron Stubblefield to fill a newly created shared EntrepreneurIn-Residence (EIR) position. Stubblefield will act as a collaborative resource between the four organizations.
direct, indirect & induced jobs created by these organizations
CORE CITY: CLEVELAND Giving Cleveland residents and entrepreneurs access to free, expert business advice.
JumpStart’s Core City: Cleveland program offers anyone who lives (or owns a business) in the city of Cleveland a unique combination of one-on-one mentoring, community events and intensive educational programs. Because of sustained demand for cohort-based, intensive services, JumpStart developed the Blueprint Program, a new fourweek offering for early-stage entrepreneurs.
1,003 businesses served through Core City: Cleveland program
86%
businesses were led by women or people of color
398
direct jobs created from Core City: Cleveland program
jumpstartinc.org/daron
Daron Henderson Lo-Key Entertainment No one is good at everything. You may not know financial aspects, you may not know marketing. Find people who can help you to avoid pitfalls.
”
Y E A R T H R E E R E P O R T • 2019- 2020
5
KEYBANK CENTER FOR TECHNOLOGY, INNOVATION AND INCLUSIVE GROWTH jumpstartinc.org/roundtable
The Dayton Pathways’ Bankers Roundtable offers small business owners and entrepreneurs access to a strategic network of lending experts and resources to help build their businesses and create new jobs. The roundtable events include bankers and lending professionals from a number of local financial institutions, including KeyBank.
Connecting underserved communities to capital, talent, customers and jobs.
The KeyBank Center for Technology, Innovation and Inclusive Growth—which has funded work in five Ohio cities since its launch— continues to accelerate the success of women and minorities as entrepreneurs of high-growth firms. In Dayton, promising business owners can pitch their enterprises to potential funders in a quarterly Bankers Roundtable. In Columbus, the Center funded an initiative to connect underserved individuals to employment opportunities through a software engineering program launched by Per Scholas in conjunction with Nationwide Insurance.
995
744
people connected to new employment opportunities
businesses served via the Center
TOLEDO
Securing partnerships to connect small businesses to coordinated assistance.
jumpstartinc.org/zobaida
Zobaida Falah Cure Even if you don’t win, you are a winner because you take away so much knowledge and information that’s going to benefit your business growth in the future.”
KeyBank’s investment in Toledo led to follow-on support from nine additional funding partners, bolstering efforts to spur small business growth via one-on-one advising and group learning opportunities such as the Impact Program. In partnership with 12 business service providers, JumpStart also formed the Toledo Business Growth Collaborative to foster collaboration, as well as provide coordinated services and funding. Overall, these partnerships have enhanced the Toledo small business ecosystem by making resources easier to access, and improving the quality and speed at which support and assistance is delivered. Since opening the Toledo office in 2019:
234
entrepreneurs served
6
K EYBANK BUSINESS BOOS T & B U IL D
91%
of these businesses were led by women or people of color
$180,000 funds provided to the community through the Toledo Business Growth Collaborative
EMERGING TALENT NETWORK
Helping students secure jobs and gain workforce experience via internships in Cleveland. Thanks to KeyBank support, JumpStart continued to help Cleveland Metropolitan School District scholars become workforce-ready via the Emerging Talent Network. Working closely with employment partners, ETN participants found jobs after graduation or gained internship experience in a diverse array of industries, including catering, manufacturing, health care and social services. Scholar takeaways include both hard and soft workplace skills; an understanding of how businesses function; and an expanded social network that includes JumpStart and local employers.
125
students who have secured paid internships
94
students who have gained full-time employment
jumpstartinc.org/ETN-year-3
Our work with the Emerging Talent Network concluded in July of 2020.
KEYBANK BUSINESS BOOST & BUILD NEW YORK
Strong partner networks driving resources where they are needed most in each city. Additional businesses have opened in downtown Albany, while opportunities are being created in Syracuse to increase supplier diversity. In Buffalo, analysts are preparing clients for traditional capital while decreasing loan defaults, and Rochester representatives are engaging with state officials to advocate for the needs of local underserved businesses. As a result of COVID-19 stabilization funds launched by JumpStart through KeyBank Business Boost & Build, 124 small business owners in these four cities have also been recipients of emergency grant funds totalling $550,000.
1,101 businesses served
86%
businesses were led by women or people of color
504
jobs created across the region
ENTREPRENEUR PROFILE TONIA BUTLER, FOUNDER
• Worker B Jobs • Honey B Home & Essentials
Tonia Butler, founder of Worker B Jobs, was inspired by her experience in the KeyBank Business Boost & Build Rochester Pitch Competition. “Although I didn’t win, I feel empowered and optimistic about my business and the direction that we’re heading,” she said. Butler continued to work with the Urban League of Rochester to improve her small business. When the Rochester COVID-19 stabilization grants were announced, she applied and was awarded the full $5,000—giving her the capital she needed to quickly pivot and maximize the success of her new e-commerce business.
jumpstartinc.org/tonia Y E A R T H R E E R E P O R T • 2019- 2020
7
three year metrics report
1,798 41%
Northeast Ohio Tech Startups & Small Businesses Served by JumpStart & Partners
of these businesses were led by women or people of color
1,003 86% Businesses served by the Core City: Cleveland Program
of these businesses were led by women or people of color
1,101 86%
Businesses served by the organizations receiving grants from the KeyBank Business Boost & Build program in New York
of these businesses were led by women or people of color
995 1,565
Companies impacted by support from Ohio’s KeyBank Center for Technology, Innovation and Inclusive Growth
Individuals impacted by support from Ohio’s KeyBank Center for Technology, Innovation and Inclusive Growth
125 94
Students have secured paid internships through the Emerging Talent Network
K EYB AN K BUSINESS BOOST & B U IL D • YE A R TH RE E RE PORT • 2019- 20 2 0
Students have gained permanent employment