Today, [**United Way of Greater Newark**](https://uwnewark.org/) (UWGN) released its first-ever “COVID-19 Emergency Small Business Grants Program 2020 Report,” detailing the economic impacts of COVID-19 on small businesses, both nationally and in Newark, including the industries that were hardest hit by the pandemic, and next steps for rebuilding as the City faces a long road to recovery.
At the start of the pandemic, UWGN partnered with the City of Newark and Invest Newark to launch its Community COVID-19 Fund to support local community members, organizations and small businesses impacted by the pandemic.
An important part of that relief effort was developing an Emergency Small Grant Program aimed at helping small businesses and microenterprises with losses they had experienced, including loss of income, payroll loss, and sales, among others.
“The pandemic has had a devastating impact on our hardworking residents and small business owners in Newark and across New Jersey, and we know that the economic impacts will be long-lasting and widely felt,” Catherine Wilson, President & CEO of UWGN, said. “With this first-ever report, our goal was to offer deep insights into the economic impact of the pandemic and the sectors and industries that were impacted most.”
To date, UWGN has received more than 900 applications and awarded more than $1 million in funding to businesses in need in Newark.
“As shown by this report, the COVID-19 pandemic has had an outsized impact on small businesses across Newark," Bernel Hall, President & CEO of Invest Newark, said. "Through the collective partnership on the Community COVID-19 Fund, we have been able to quickly create and mobilize resources to support Newark small businesses through the pandemic. But that work isn’t done yet. Through the 'COVID-19 Emergency Small Business Grants Program 2020 Report,' we have better data and tools to continue our work together with United Way of Greater Newark to chart a path to help lift up our city’s small business economy.”
The application for the grant, primarily designed for small businesses with fewer than 10 total employees, required businesses to answer a series of questions, including how long their business had been open and whether or not the owner had to lay off employees as a result of the pandemic.
The findings illustrated in the report demonstrate the severity of COVID-19 on small businesses in Newark.
Key findings from the report include:
- Just under seven in ten (69%) of businesses that applied have been open for three or more years, demonstrating that established thriving businesses were in need as much as newer businesses.
- Nearly three quarters (74%) of applicants are unsure if they can, or certain that they cannot pay their rent anymore.
- Most applicants reported the following experiences related to COVID-19: inability to pay bills or fees (78%), lack of cash reserves (74%), decrease in the number of customers (68%), disruption in operations due to an order by the City of Newark (67%), and temporary closures (67%).
- More than half of businesses are minority or person of color owned (59%), locally-owned (58%), and woman-owned (54%). Over one quarter are immigrant-owned (27%).
The report also includes next steps for future rounds of funding as well as future strategies for rebuilding Newark’s small business economy long term. UWGN remains a vigilant partner to the community in tackling the greatest needs of residents, social service providers and public health sectors and will continue to distribute funds accordingly.
For more information about the Community COVID-19 Fund and United Way of Greater Newark’s commitment to serving the community or to make a donation, please visit: www.UWNewark.org.