CLEVELAND — In late July, the U.S. Economic Development Administration announced a $1.8 million award to support the Urban League of Greater Cleveland in launching a $2.25 million Revolving Loan Fund. The self-replenishing RLF will assist small businesses and entrepreneurs in Cuyahoga County with critical “gap” financing to rebuild and expand after the pandemic, paying special attention to businesses located in low-income areas. This is a huge win. But it didn’t happen without a strategic vision and deliberate coordination to shift the course of Northeast Ohio’s recovery in the right direction.
According to the latest data available for Cuyahoga County, unemployment rates among Black workers in 2019 were three times higher than rates among white workers, a larger disparity even than at the lowest point of the Great Recession that began in 2008. The racial wage gap has also widened, with Black workers earning 70 cents on the dollar on average pre-Great Recession to 63 cents on the dollar as of 2018, according to the latest data analyzed.
Behind these statistics are real people struggling to make ends meet. A recovery that excludes some ultimately fails everyone. Regions that perpetuate the same policies and practices that exclude Black, Latinx and other minority residents will fall further behind.
To achieve a more prosperous Northeast Ohio, history mustn’t repeat itself. The influx of federal recovery dollars presents an unparalleled opportunity for Northeast Ohio to reimagine what it can be — but it won’t happen without deliberate, thoughtful action.
At the Fund for Our Economic Future, a local funding alliance of more than 40 organizations and individuals, efficient and equitable use of federal resources is top of mind, given the order of magnitude of public investment. How our organization supports more equitable access, distribution and outcomes resulting from the resource investment will be central to our work going forward.
When the U.S. Economic Development Administration (EDA) announced the CARES Act recovery assistance, our organizations teamed up to pursue the opportunity. Fund for Our Economic Future staff built a relationship with the regional EDA representative, serving as a conduit between this and other local proposals (including MAGNET’s successful bid). The Fund also provided grant-writing and match-funding support and brokered additional match funding from The George Gund Foundation and the Cleveland Foundation.
And the Urban League brought the technical know-how and successful model (based on the four-year-old Access to Capital strategic program UBIZ) from which to build the RLF. It will provide access to loans for small- and medium-sized businesses for working capital, construction and…
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