Nearly two years after the COVID-19 pandemic delivered a big blow to small businesses across New York City, the chair of the City Council’s Small Business Committee called on the Adams administration to boost funding for the city agency providing direct help to struggling owners.
During the March 14 hearing, City Council Member Julie Menin highlighted how Mayor Adams administration’s proposed budget reduces the number of Small Business Services (SBS) agency members to 29 individuals and would decrease funding by $219.1 million compared to the previous fiscal year.
This comes at a time where small businesses need as much support as possible to recover from the economic pitfalls they experience due to the COVID-19 pandemic – as nearly one-third of the nearly 200,000 local small businesses are expected to permanently close by the end of the pandemic.
“March 22, 2022 marks two years from the Executive Order ‘New York On PAUSE,’” said Menin. “Since then, New York City’s small businesses have fought tooth and nail to survive, and they desperately need our assistance. The city must offset the loss of federal funds by increasing funding to Small Business Services.”
Menin expressed concern while questioning Commissioner Kevin Kim of SBS over the decision to decrease funding by over 55%. Although last fiscal year’s budget consisted of 64.6% of federal funding for small businesses, this year’s proposed budget allocates a mere 29% of federal funding.
“SBS’ work will be shaped by our commitment to equity and greater opportunity for all,” said Kim. “We will focus on the people who need our help the most and who have received the least. We will promote equity and economic opportunity at every turn. We will work in close partnership with private industry, philanthropy, labor, community-based organizations, elected officials, and other City agencies to achieve our goals.”
Additionally, Menin expressed the urgent need for NYC to invest in the 76 Business Improvement Districts (BIDs) which support over 93,000 businesses across the city while additionally helping by branding and marketing small businesses in order to succeed in commercial corridors.
“By investing in under-resourced smaller BID’s, we can help thousands of struggling small businesses survive this pandemic,” said Menin. “Aiding our commercial corridors is of paramount importance as smaller BIDs, such as White Plains Road in the Bronx or Bell Boulevard in Bayside Queens are forced to spend over 55% of their limited budget on general and administrative expenses. The City must do its part to boost funding to smaller BIDs and I thank Mayor Eric Adams for including this initiative in the Blueprint for New York City’s Economic Recovery.”
Other small-business advocates also spoke to the dire need of investments in small businesses during the hearing, saying minority-owned and operated businesses are at the highest risk of closure if more financial assistance isn’t provided.
“I want to make clear the importance of continued support for the $100 million New York City Small Business Resiliency Grant, which is providing BIPOC owned businesses crucial funding,” said Valerie White, executive director of LISC NY. “These businesses make up the economic culture and social backbone of low and moderate-income neighborhoods and without them, the future of countless commercial corridors will be jeopardized and commercial blight will take over far too many minority neighborhoods, forcing long-standing residents and businesses out.”
