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From the President & CEO
Dear partners and friends,
As the lasting effects of the COVID-19 pandemic on our personal, professional and financial lives become clearer, so does the need for our field to leverage this transformative time as an opportunity to build an economy that works for everyone.
Last month, we discussed the disproportionate impact this crisis will have on the finances of families and individuals who are already economically vulnerable. Since then, we have continued to engage practitioners, funders and other stakeholders across the Prosperity Now networks to help us learn what communities really need throughout this time.
One of the needs we have seen rise to the top is support for small businesses, particularly in communities of color and native communities. We know that small businesses are often the economic backbone of communities of color. Small businesses owned by people of color hire people of color at significantly higher rates than white-owned small businesses. Even so, many of these minority-owned businesses have been left out of the economic crisis response, such as the Paycheck Protection Program, and are struggling to stay afloat during this difficult and uncertain time.
As a response, Prosperity Now, in partnership with the Expanding Black Business Credit Initiative and the African American Alliance of CDFI CEOs, called upon lawmakers to designate significant resources to community development financial institutions (CDFIs), which are effective in serving communities not typically served by traditional financial institutions. In particular, CDFIs are well positioned to provide much needed capital to businesses owned by people of color and American Indians. Now more than ever, CDFIs need resources to ensure that these businesses continue to thrive as economic drivers in their communities.
Prosperity Now is also a founding member of the Page30 Coalition. In this effort, Prosperity Now will join with others to advocate for the underserved and rural small business communities in the CARES Act legislation and future legislative packages responding to the COVID-19 crisis.
Furthermore, later today we will release a new report entitled “The Cascading Impact of COVID-19 on Microbusinesses and the U.S. Economy” on the financial effects of the COVID-19 pandemic and related recession. This report highlights the limitations of the CARES Act Paycheck Protection Program and the lack of inclusion of small businesses of color.
As I have mentioned before, the Prosperity Now community has a tremendous responsibility to change the social and political narratives in our communities. We thank you for your continued partnership and dedication to low-and-moderate income communities in this time of crisis.
Gary Cunningham
President & CEO, Prosperity Now
Featured Resource
The Cascading Impact of COVID-19 on Microbusinesses and the U.S. Economy
The Cascading Impact of COVID-19 on Microbusinesses and the U.S. Economy
The devastating financial effects of the COVID-19 pandemic have hit small businesses, particularly microbusinesses (businesses with 0-9 employees), like a tsunami wave with no end in sight. The report we released today, The Cascading Impact of COVID-19 on Microbusinesses, looks at why businesses owned by people of color, women, and immigrants were highly susceptible to an economic downturn prior to the pandemic. It also details how microbusinesses, which are historically the most vulnerable to financial shocks, have been severely impacted by the virtual stoppage of economic activity in the sectors of the economy where they are most represented – including the food service industry, retail, and accommodation services.
Learn more in our report, here. Follow the conversation on Twitter using #ProsperityNowScorecard. Engage with us by participating in a live discussion on Tuesday, May 19 at 1 p.m. ET.
Experience the 2020 Prosperity Summit from Home!
We are excited to announce that the 2020 Prosperity Summit has gone virtual! Even in this time of uncertainty, one thing remains true: There is a simple power in people coming together. While social distancing impacts our ability to convene in-person, it does not mean that we cannot assemble virtually. Mark your calendar for September 30-October 2, 2020!
House Democrats Open the Debate on Next COVID-19 Legislation with the Heroes Act
On Tuesday, House Democrats introduced their vision for what a fourth coronavirus emergency legislative measure should be. Titled the “Health and Economic Recovery Omnibus Emergency Solutions HEROES Act”, or “HEROES Act”, the $3 trillion legislative package includes a range of important provisions—such as extensions of the unemployment support provided through the CARES Act, additional Economic Impact Payments, and temporary expansion of the Earned Income Tax Credit—that are intended to help further blunt the immediate impact the crisis has had on individuals, families and workers, and support the recovery ahead.
Overall, while the HEROES Act represents a strong entry in the upcoming debate for what should ultimately be in the next coronavirus emergency legislation, the Senate is not expected to consider the bill after the House votes on it. However, as House Democrats and Senate Republicans begin to negotiate, it is likely that several elements within the HEROES Act may be included in next coronavirus emergency legislative package that Congress passes.
To learn more about what is in the HEROES Act, we pulled together a summary of the legislation, which can be found here.
Reflections on Health and Wealth During the COVID-19 Crisis
The COVID-19 pandemic threatens the overall health of communities and puts the financial health of families at the center of the conversation. Now more than ever, we are seeing how critical financial stability is to overall health and well-being. Using the social determinants of health as a framework, we explain the cascading effects of the pandemic and how it impacts health and wealth.
Network COVID-19 Engagement Series
Thank you to all who have joined in the discussions on our Network COVID-19 Engagement Series! So far, we have hosted practitioners, funders, and other stakeholders across five Prosperity Now networks. The recordings and slides from these sessions can be found here. Additionally, we added three new sessions for the Racial Wealth Equity, the Affordable Homeownership, and the I’M HOME Network.
Financial Capability Month and Beyond
With Financial Capability Month behind us, we want to spotlight the work that is being done on the ground by our partners across the country to help families maintain financial stability. We recently concluded a three-part blog series that highlighted barriers to financial capability, strategies that build financial capability in a time of crisis, and how we should envision financial capability moving forward.
Mindfulness Mondays with the Prosperity Now Community
We are excited to offer our Community a weekly guided meditation on Mondays from 4:30 – 5:00 p.m. EST. Join us to kick off the week in solidarity, and to help us all remember our interconnectedness during these challenging times. This series is led by Hiba Haroon, a certified yoga and meditation instructor. No meditation experience is required, come as you are.
Mark Your Calendar
- Network COVID-19 Engagement Series – New Sessions Added!
- Add the 2020 Prosperity Summit to your calendar – September 30-October 2, 2020
- Camp Prosperity Advocacy Bootcamp – July 2020
Trending Now
- The Movement Reaches New Heights: A Look at The State of the Children’s Savings Field 2019
- Six Questions for Housing Providers about Fair Housing in the age of COVID-19
- COVID-19 Resources
Do you have resources you’d like to see added to our page linked above? Are there resources you need, but haven’t been able to find? Send us an e-mail!
