Page 6 - CEEM Shopping Mag May 2020

Different Times, Similar Message

By Vincent McCoy

OVID-19 delivered and is still delivering a punch to the United States and to the world that will
change how we operate, interact, communicate and perform business no matter the economic
construct. While providing guidance to businesses in pursuit of federal, state and local disaster
relief or when on town halls or conference calls the question arose that asked what was the key
to getting funded. The salient answer is preparation. That is why the message is similar to what
it was before the pandemic.

Businesses with the ability, at a moment’s notice, to pull together accurate nancial statements,
tax returns, corporate documents, payroll records, and supporting documentation move to the
front, get better responses from lenders and are more likely to receive the money they need to
move forward. The Paycheck Protection Program requires businesses to calculate payroll and xed
expenses to determine the portion of the Small Business Administration loan that would become
a grant. The Economic Injury Disaster Loan requires the business to project its expenditures going
forward as a basis for getting funded. Before the pandemic, these records and ability to predict
revenue and expenses were key.

The other key is to participate. As Director of the Small Business Development Center I saw that the
percentage of African American business owners who sought disaster loan assistance after the
disaster declaration dropped from the normal 23% to 16.5% in a period where overall demand tripled.
This means that fewer African Americans in the region got help in time of crisis, fewer had opportunity
to apply for disaster assistance and, as a consequence of not getting much needed money, will be
weaker and less-equipped to succeed. Participation gives one the ability to win, helps us get
information about the success and failure rates of applications, and helps make the powers that
be accountable.

In conclusion, African American businesses should always be prepared to participate in programs
designed to help small businesses whether or not they target them. Failures and successes and
approvals and denials will happen but the risks of each are better than doing nothing.

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