YOUR VOICE, YOUR VOTE: Supporting Historically Underutilized Businesses

ASK THE CANDIDATES: What will you do to ensure businesses owned by people of color and women have a fair chance at doing business with government, particularly given the economic impact of COVID-19?

  • What plans do you have to commit funding and assistance to Historically Underutilized Businesses (HUBs) as part of COVID-19 recovery efforts?
  • Do you see the importance of ensuring businesses that have been historically excluded from opportunity are able to access public contracts?
  • Will you work toward setting a goal for our community to reach the target (or surpass it) in a few years?
  • How can I work with you to address the underutilization of HUBs?
  • Will you commit to addressing disparities in unemployment that exist between whites and people of color?
  • Will you work toward ensuring North Carolina pursues full employment for all of its residents?

North Carolina’s lawmakers can ensure all businesses have access to opportunity so that they can pay their employees and neighbors a living wage, strengthen main streets, and build prosperity for Black, brown, and white business owners. Targeted support for HUBs is a crucial part of an economic recovery, particularly given the COVID19 pandemic, in which businesses owned by people of color have been overrepresented in impacted industries and unable to access initial federal relief funds.

 

FACTS YOU CAN USE

  • In several communities where people of color make up more than 50 percent of the population, the HUB utilization rate is less than 1 percent.
  • There are 287,058 firms in North Carolina owned by women and 112,941 firms owned by African Americans.
  • Out of $600,221,228 spent on goods and services, North Carolina’s community colleges only spent $7,861,121 with HUBs of color in 2016-2017.
  • Out of $2.2 billion dollars spent on goods and services, North Carolina’s public school systems only spent $59,184,433 with HUBs of color in 2016-2017.
  • Undercapitalization plagues enterprises of color. Firms owned by people of color and/or women with receipts less than $500,000 experienced loan denial rates of 42 percent, compared to those of 16 percent for non-minority firms.
  • In the face of structural and financial barriers, 183,380 enterprises of color still generated $20.7 billion in 2012, up from 131,826 firms and $16.1 billion in 2007. If actively supported, business creation and increases in receipts could only be expected to grow.