The Disproportionate Impacts of the PandemicAugust 25, 2022
Our community-based lending programs have always focused on supporting minority-owned businesses to help combat the challenges they face, including the challenges resulting from COVID. As small business owners recover from the effects of the pandemic and new businesses open, the need for capital and small business technical assistance in the Hudson Valley has never been greater.
The pandemic’s impact on minority-owned businesses has been disproportionate. Bloomberg reported in September 2021 that Black and Hispanic business ownership is up 38% and 15%, respectively, from pre-COVID levels. At the same time, a recent Goldman Sachs survey of small businesses found that Black-owned firms have been slower to recover than their peers. In the survey conducted in September 2021, just 20% of Black-owned small businesses say they are confident they will be able to access capital if needed.
The Great Resignation
The Goldman survey also found that small business owners are struggling with challenges associated with inflation and labor shortages. Three-quarters of the respondents said their business’ financial health had been negatively impacted by inflation. In addition, three-quarters of the businesses are hiring, but of those, 87% are finding it difficult to recruit qualified candidates. Sixty-four percent of business owners surveyed say that workforce challenges have worsened since pre-COVID.
We are working hard to prioritize the capital needs of People of Color, women, and entrepreneurs with lower incomes in the Hudson Valley. Read the Bloomberg report and the Goldman Sachs survey here. Learn more about our work in 2021 and how you can join us.