Minority- and women-owned business enterprises got a double dose of help last week as public and private enterprises moved forward with programs and funds to help small business navigate the post-COVID economic landscape.
New York City Comptroller Scott Stringer said his
Meanwhile, the nation's largest minority-owned investment bank, Siebert Williams Shank & Co. LLC said its affiliated Clear Vision Impact Fund has gotten capital commitments of $110 million to provide capital to hard hit MWBE firms around the country.
MWBE University, a program launched by Stringer in 2018, will hold six online webinars this year designed to help MWBEs and small businesses get certified by the city, navigate the procurement process and win city contracts.
Topics to be covered include how to prepare for credit and capital; fueling the demand for diversity on boards, how to implement a chief diversity officer; how to increase MWBE purchase method opportunities for city agencies; investment relationships with pension consultants post-COVID; and doing business with the comptroller’s office.
“This year, we’re relaunching a series of online workshops in 12 different languages to expand aid and opportunities for small businesses and MWBEs impacted by COVID-19," Stringer said. “I’m proud that last year our workshops ultimately connected 80 minority and women asset managers with city pension consultants, and this year we hope to exceed that success. Local community wealth creation depends on giving these businesses a fair shot.”
In December, the comptroller will hold his annual emerging and MWBE manager conference for CEOs, senior partners and portfolio managers of public equity, public fixed-income, private equity, real estate, infrastructure, hedge funds, alternative credit and economically targeted investment firms and broker/dealers.
While city agencies are making progress in delivering contracts to MWBEs, Stringer said, in 2019 the city awarded only 4.9% of contracts to MWBEs.
“As thousands of businesses struggle to stay afloat amid the COVID-19 pandemic and economic crisis, my office is doing everything in our power to help small businesses and MWBEs rebuild stronger than ever,” he said.
The city’s economy could use all the help it can get, especially if it means building up a thriving small business community throughout the five boroughs. While the city’s preliminary fiscal 2022 budget closes a $5.5 billion gap and will be balanced, out-year gaps remain substantial at $4.31 billion, $4.19 billion and $4.28 billion from fiscal 2023 to 2025.
The city is one of the largest issuers of municipal debt in the United States. As of the end of the second quarter of fiscal 2020, the city had about $38 billion of general obligation debt outstanding. That's not counting the various city authorities that issue debt. NYC GOs are rated Aa2 by Moody’s Investors Service, AA by S&P Global Ratings and AA-minus by Fitch Ratings.
Siebert Williams Shank said the Clear Vision Impact Fund has gotten capital commitments of $110 million. The fund has a target size of $250 million and will invest in small and medium-sized businesses, aiming to maximize the social impact by helping MWBEs access capital.
SWS said it expects to soon begin making loans to small businesses either minority-owned or operated, or that serve underperforming communities which have experienced a lack of capital to support economic growth. The loans will help small businesses across the nation that employ, train and serve those communities.
SWS
“We’re pleased to see the progress with the Clear Vision Impact Fund and that our investment, along with others, helped reach this important milestone,” said Tahreem Kampton, Microsoft’s Treasurer and CIO.
Each of the companies have made capital commitments to Clear Vision as part of their firms' strategy to achieve the goals of advancing racial equity and economic opportunity.
“The members of the Siebert Williams Shank and Clear Vision Impact Fund teams are gratified to have received the support and confidence of these industry-leading corporate partners that have enabled this important mission,” said Christopher Williams, principal of Clear Vision’s general partner and SWS chairman.
State, county and city revenues have been hammered by the coronavirus pandemic and this infusion of cash to MWBE firms aims at bolstering municipal revenues as businesses ramp up hiring and get back to work.
“Providing capital to minority-owned businesses is critical to ensuring economic growth and job opportunities for the future across communities nationwide,” said Gary Wipfler, Apple vice president. “Apple is proud to be part of the Clear Vision Impact Fund and support their work to address inequality by expanding access to economic opportunity.”
Siebert Williams Shank is the nation’s largest women-owned and minority-owned investment bank and is a top-ranked underwriter of municipal bonds.
