EVERETT — A new countywide chamber of commerce is in the works after COVID relief funds failed to reach many minority-owned businesses, according to advocates.
More than 40 community leaders met late last month to discuss the need for a new chamber, specifically to support business owners who identify as Black, Indigenous or people of color (BIPOC).
Garry Clark, president and CEO of Economic Alliance Snohomish County, said minority-owned businesses missed out on the federal CARES relief fund during the pandemic.
“A lot of our BIPOC community did not have strong relationships with folks trying to get them funding,” Clark said. “There seemed to be a lack of trust and support there.”
The new chamber would be a place for business owners of color to build relationships and increase their visibility. It would also provide access to resources like training, networking events and financial support. Business owners who otherwise lack representation would be able to voice their needs and advocate for policies that benefit them.
In 2021, almost 93,000 small businesses were BIPOC-owned in Washington — about 14% of all small businesses in the state, according to U.S. Small Business Administration data.
Exact data on minority-owned businesses in Snohomish County is sparse. Black SnoCo, a “virtual neighborhood” for Black-owned businesses in Snohomish County, lists 145 businesses on its website. Seventy-five businesses in the county are Minority Businesses Enterprise-certified.
Economic Alliance Snohomish County led the meeting on July 27 as part of its SnoCODE initiative, a partnership with Leadership Snohomish County and the county government to provide diverse populations with more economic opportunities.
Snohomish Mayor Linda Redmon said she supports a new chamber because the city’s programs lack reach and diversity.
“Our economic development team here is one person, primarily,” she said at the meeting.
Nelia Viloria, operations manager at Leadership Snohomish County, asked if anyone had surveyed local business owners.
“We keep talking about, ‘Here’s what we need to do,’” Viloria said after the meeting. “Have we asked them what they need from us?”
Chanin Kelly-Rae, interim executive director at Leadership Snohomish County, suggested conducting surveys and disparity studies before creating an outline for a new chamber.
Kelly-Rae has provided diversity, equity and inclusion consulting for the past 20 years.
“When you have a relationship that lasts for decades, you don’t open the window or door to bring in new folks to be able to sell,” she said. “Those relationships that are decades long are generally white men-owned firms. … For a long time, BIPOC folks were intentionally kept out of trade unions and segregated out of opportunity.”
Kelly-Rae said a new chamber would help ensure organizations establish long-term partnerships with BIPOC business owners.
“Since George Floyd’s murder, I’ve watched organizations around the world promise billions of dollars to make sure they had robust supplier diversity programs, which didn’t come to fruition,” she said. “The performative nature of this work has to change.”
In addition to a lack of trust and connections, BIPOC business owners can face a lack of capital and language barriers. According to a Stanford report published in 2016, Black-owned startups are denied loans at a higher rate than white-owned startups, regardless of credit scores.
“Overall, black business owners are about three times more likely to not apply for loans because of fear of rejection than white business owners,” according to the report.
Last year, the state Department of Commerce published a report on the state’s small businesses assistance, including a guide for serving rural and minority communities. It found that while most assistance providers say they want to promote diversity in the market, less than half reported serving minority or rural businesses over the past twelve months.
Another economic disparity lies within state contracts. In 1998, Washington voters approved an initiative to stop race and gender-based equity programs for contracts and hiring. On average, the state currently contracts with 7% of the certified minority, veteran and women-owned businesses available, according to the state Office of Minority and Women’s Business Enterprises.
“Contractor opportunities are not equal,” said Cynthia Andrews, an Everett small business owner.
Andrews said she would join a BIPOC chamber. She and her daughter Gea Andrews Murphy run Intentional Connect, a small consulting firm. Andrews said she wants her firm to help provide contracting opportunities for single moms, seniors and others who may need extra support starting their own business.
Economic Alliance Snohomish County has been working to create partnerships among more than 20 chambers across the county, and has helped develop chambers in Mountlake Terrace, Brier and Everett. Clark, the organization’s CEO, said they would use the same model for a countywide BIPOC chamber — fundraise, hire a staffer and develop a board.
When BIPOC businesses do get assistance, they often thrive. The Department of Commerce report projects a significant spike in growth and market share for minority-owned businesses by 2060.
“Minority and women-owned small businesses are not only crucial in the present economy, they are also the bedrock of Washington State’s future economy,” according to the report.
Sydney Jackson: 425-339-3430; sydney.jackson@heraldnet.com; Twitter: @_sydneyajackson.
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