Supporting Small Businesses and Communities Through Crisis

Small Businesses Have Been There for Us. Let’s Be There for Them.

This pandemic presents unprecedented challenges, together we can help address this crisis. This page highlights ways you can help today.

“Small business used to define America's economy. The pandemic could change that forever.”
Heather Long Economic Correspondent, Washington Post

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CDFIs: Responsive Local Lenders

As communities across the US grapple with the negative health outcomes and economic fallout brought on by the current pandemic, long-standing inequities within our country have been exacerbated. Communities of color continue to experience a disproportionately high number of cases, hospitalizations, and deaths as well as higher rates of unemployment, reduced hours, and evictions 1.

It has never been more critical to mobilize in support of the people and communities hit hardest by the impacts of COVID-19, but there is also a fierce urgency to build better communities and support equitable systems as we emerge from this unprecedented time.

Right now small businesses are especially vulnerable to the impending economic crisis2. Community Development Financial Institutions (CDFIs), local lenders that know their communities, are well equipped to rapidly meet the individual needs of small firms and are a viable pathway to getting capital to entrepreneurs in need.

Find your local CDFI and connect with them to make a grant (charitable contribution) to bolster your local small business recovery efforts.

Make a Donation

The Economic Fallout

Small Business at Risk

The full breadth and permanence of COVID-19’s economic impact is currently unknown, but we can be sure that the small businesses of America face an existential threat. Businesses with fewer than 500 employees account for 48% of American jobs and 43.5% of GDP 3. The current economic downturn is putting immense pressure on their already fragile finances. Here, too, the negative shocks brought on by the pandemic are disproportionately felt by people of color (POC) and women.

The 1.1 million small businesses owned by women and POC are an essential job source, employing more than 8.7 million workers and annually generating more than $1 trillion in economic output. Women alone own nearly 300,000 small businesses, employing 2.4 million workers 4.

These underrepresented small businesses are more vulnerable to COVID-19’s effects for several reasons. Typically POC and women entrepreneurs face barriers to capital in the first place – such as the existing disparities in fund allocation and capital investment, limited access to credit, as well as the fact that these businesses are more likely to be concentrated in the industries most affected by the pandemic.

Supporting these communities to prevent further damage is critical to the economy’s recovery, but also critical in advancing racial and gender justice in the US.

Supporting Small Businesses

Supporting Small Businesses Through CDFIs

Small businesses need support now. Federal aid and emergency funding are not enough in the face of the unprecedented capital needs small businesses have.

CDFIs have a proven history of responding to disasters of all types and being lenders of last resort during recessionary periods when conventional banks retrenched 5. Additionally, CDFIs are mission-driven institutions which prioritize social, economic and racial justice for underserved communities. Central to CDFI success is the work they do to empower communities from within by generating economic developments and driving sustainable solutions that help address their most pressing needs.

Today, CDFIs are working with small businesses across the country to fill the growing capital gap small firms face in light of this pandemic.

We must direct more capital to these lenders (CDFIs) that have proven durable and aligned with the communities they serve.

Click to see additional resources.

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Where to activate your cash

Now, more than ever, the work CDFIs do is paramount to helping small businesses and protecting our economy.

We have seen organizations and individuals alike join the conversation for sustainable change. The fact is low- to moderate-income communities bear the brunt of financial strain, and communities of color bear the brunt of negative health outcomes. On top of that federal aid continues to largely neglect these groups despite their disproportionate need.

This map highlights areas of need that align with CDFI coverage, giving investors a clear path to high-impact direct local investment opportunities.

Our longstanding commitment to sustainably invest in these communities of color is now critical, as is our role in expanding the channels for capital to reach the groups which need it most. Click here to submit an inquiry about creating a customized investment with CNote.

Visualizing Need

COVID-19 Economic Vulnerability Index & Black Communities Map

9352213114913412735 Arizona 2312221436132232110321122122117352241311423143121111112735 Louisiana 121111411381224117111119 Idaho 111216311621122211131141023422412221231121114141145121144182224171113514183228312224381114 Minnesota 431312111 North Dakota 2712112221331212224113321125211131112315112213233372 South Dakota 2561233515212453171012251766222435863642711133610610124441113611151137102125236234938 New York 1111112112119121782321 Alaska 1212243141145331725451213199351541113441416242418144189711313467462441341132113181107414 Georgia 212431321322312224161744131062212292622242522111134165231629 Indiana 3222124511321321310111121412453111131614258174131304182412127421413152021121032122491 Michigan 23311321222511114733311322233617311553547222122111851125212212112921112321264672114 Mississippi 2821321321254492267222155225233222416131194527244122172466342926252294522241062242542 Ohio 1333131121127113111138712211114123531321111741154322131710111561135723132371224139113211132517286103 Texas 111113111111123512121122131 Nebraska 2113715524333116132546331015914261010111212223621324111215351 Colorado 24314810712852631471619716823 Maryland 11133231133142116114111114253 Kansas 127362543412521111113115115151211144474279315216111421743811511631114 Illinois 23635138324612261111344264339451105123216346583356423455145555245221113776 Wisconsin 12213238826279135221186785221061913253023311115267121626214152554284381719322342446251055818164 California 812111112111114231311151511131 Iowa 3532631833719529622031311214129732281613595541341314311243419876316411171121124 Pennsylvania 1112259211224101122731112534211241125221314111136 Montana 41111341251611363753112118143353811 Missouri 6339197272095251355791035265331510511139101214161726414162922611223127828 Florida 5413133545421313815311245441245443141454521516416433134253131111445414174163431513444752254121415116111353 Kentucky 451296731231858123115 Maine 6257132237316132071 Utah 515111911631111314111111113132411111111121 Oklahoma 212215721528213322245214112123432342243331341252141243215141325113121121113369335 Tennessee 124441243165192491744145335131411412312 Oregon 41216534412332323347336523235331111326833733323 West Virginia 41225181622215411151211341214211221712412711152344 Arkansas 1824565756310735514565232721281374106128 Washington 610867101213147126778611777317976838919791411661348528136734108761853119654173699657617105671711363711358478883261351111787 North Carolina 22937362543515233931151067829526565452523655113113951025223798751481587851107311352366553620474217313031013312233 Virginia 1363233132 Wyoming 3314412192121342314383214321 Alabama 2045871415210310155564811697347121021093517 South Carolina 13231184622441296241838284522611 New Mexico 48494121881216 New Hampshire 496842251198235 Vermont 41292449632 Nevada 914105 Hawaii 36131514142212023191141424 Massachusetts 51229156 Rhode Island 16791615192212151433242720927192841516 New Jersey 3099 Delaware 172713183881728 Connecticut 37 District of Columbia

Vulnerability Index % Black

The map above combines economic vulnerability data and demographic information for black populations to illustrate counties that investors, interested in racial equality and/or economic recovery from the pandemic, might want to deploy investment capital into.

Understanding This Map

Areas of darker shades show greater levels of economic vulnerability or demographic concentration. Counties with dark indigo coloring represent the highest percentage of black inhabitants and the greatest levels of economic vulnerability.

This map layers data on county-level economic vulnerability during COVID-19 as well as census data on the percent of any given county’s population that is Black. Each variable is represented on the map by a color gradient: the vulnerability index is indicated by the pink color and the percent of the population that is Black is indicated by the turquoise color. As the index value or percent rises from “low” to “high”, the shade becomes darker. The legend available at the bottom of the map provides a guide to interpreting the map’s shading as well as the thresholds for “low,” “medium,” and “high” for each variable.

Additionally, every legend item identifies how many counties within the US it represents by percent. This addition is meant to help communicate the breadth of vulnerability right now. For example, you would see that in total 1,048 counties have high economic vulnerability index scores. There are 3,142 counties in the US altogether, so about 33% of American counties are experiencing high economic vulnerability.

19.5% of the counties seeing the greatest economic vulnerability have a high percentage of Black residents.

Data

This map is based on three data sets.

  1. The COVID-19 Economic Vulnerability Index produced by data researchers at Chmura
  2. Census data sourced from the American Community Survey (ACS)
  3. CNote’s proprietary data of CDFI coverage on the county level
Resources

Additional Resources

Below you’ll find resources for small businesses, including business relief programs, special CDFI relief funds, and local initiatives.

Federal, State and Local Programs

Information about government programs for small businesses.

CDFI Small Business Initiatives and Resources

CDFI-originated programs to support small businesses

CDFI Donation and Investment Opportunities

Help scale CDFI small business relief efforts with a grant or investment

Small Business & Community Impact

Reports from the field about how this unprecedented crisis is impacting small firms and communities across America.