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KC micro-enterprise businesses struggle to receive federal aid

Posted at 11:08 PM, Jun 17, 2020
and last updated 2020-06-18 00:08:53-04

KANSAS CITY, Mo. — Throughout the COVID-19 pandemic, communities of color have reported being disproportionately impacted when it comes to federal money meant for small businesses.

"I think the intent was admirable, but I do believe some of our businesses, again, micro enterprises, have been completely left out and it does not help us," Simone Curls, executive director of the Prospect Business Association, said.

A micro enterprise is a business with no more than four employees and such businesses are the heart of much of the Prospect Corridor. And, according to Curls, they don’t meet some of the criteria for federal aid.

"It is putting a spotlight on the multitude of issues for a community who has been historically not funded, lack of resources, underemployed, under-serviced," Curls said. "it has just made it worse."

Rep. Emanuel Cleaver, of Missouri's 5th District, said they are trying to “get that changed” in Congress.

In the meantime, Curls said, a lot of micro enterprises tried to file for unemployment benefits.

The Prospect Business Association is working to help more than 100 businesses navigate the coronavirus pandemic while trying to stay afloat, but more help is needed.

"We are continuing to look for resources, but the reality is there aren't that many out there," Curls said. "This is a grave issue. It's kind of like a 911 for us to call out and to tell people we need the resources, we need to support [businesses] for this community to continue to thrive."

Donald Maxwell owns three shopping centers on the corner of East 31st Street and Prospect Avenue, which is home to 22 small businesses.

"Only about five or black owned, but more than half our minority owned," Donald Maxwell, owner of Linwood Shopping Centers, said.

And most don't qualify for the Federal CARES Act either.

Most of Maxwell's tenants had to have part of their rent cut as a result of being closed.

"They have to be able to pay something or else they become a tragedy of the pandemic,” Maxwell said. “It's just the amount that they have to pay, and I recognize that.”

Cleaver said several hundred million dollars in federal aid could still be up for grabs for minority businesses, but agreed that there's a lack of access.

"Many of the smaller businesses don't have the relationships with banks that the big corporations would have," he said.

In response to that, the Tri-Chamber recently formed to open an office in Kansas City, Missouri, to help put that federal CARES Act money in the hands of small businesses. The group consists of the Black Chamber of Commerce of Kansas City, Hispanic Chamber of Commerce and the Mid-America LGBT Chamber of Commerce.

After speaking with local city officials, Cleaver said, the Tri-Chamber could be active in a matter of days.