36 COURT STREET SPRINGFIELD, MA 01103 413-787-6170 FAX 413-787-6833

PRESS RELEASE
FOR IMMEDIATE RELEASE
Friday, October 14, 2022

Contact: Justin Hurst, City Council
(413) 374-5844, justinhurstace@yahoo.com

Contact: Tracye Whitfield, City Council
(413) 221-4443, tracye0929@gmail.com

Contact: Zaida Govan, City Council
(413) 301-2533, Zaida.govan@yahoo.com

Inequitable Distribution of American Rescue Plan Act Funding

City Councilors Justin Hurst, Tracye Whitfield and Zaida Govan are calling on Mayor Sarno and the city’s finance team to resolve the inequities that have resulted in the initial awards of over $76 million dollars of American Rescue Plan Act (ARPA) funding. After closely reviewing the data during a recent finance sub-committee meeting, it became clear to Councilors that there were significant racial, gender and geographical gaps in the ARPA award amounts distributed. These gaps were most glaring in the small business category even after the city has celebrated each round as being intentionally diverse.

While the administration has done a commendable job when it comes to the number of minority-owned small businesses to whom it has awarded money (82%), it has fallen woefully short in ensuring that these businesses receive their fair share of the money being awarded. For example, while 73% (48% Black/25% Hispanic) of small business applicants receiving ARPA funding were Black and Hispanic, only 32% (23% Black/9% Hispanic) of the total amount of money allocated in the small business category was awarded to these same businesses. However, 17% of the White small business applicants receiving ARPA funding received 44% of the total funds allocated. Women-owned businesses faced similar inequities as Black and Hispanic-owned businesses as they only received 13% of the total funds in the small business category, but represented 34% of the applicants receiving awards.
The data illustrates that White small businesses that applied for ARPA funding were awarded on average $382,727 while Black small businesses were awarded on average $76,172. Hispanic small businesses were awarded on average $56,176 and Women and Veteran-owned businesses on average were awarded $57,000 and $55,000 respectively. Moreover, White small businesses were awarded 5 times more than Black small businesses and 6 times more than Hispanic, Women, and Veteran-owned businesses. Not only are these numbers not reflective of the makeup of Springfield, but they run contrary to the intent of the Federal Government, which has made it clear that these monies are designed for those communities and businesses who were most disproportionately impacted by the pandemic.
Another issue at the sub-committee meeting that raised concern among Councilors was that out of all of the small businesses and non-profits who were awarded ARPA funds, 38 of them are located in the Metro Center neighborhood (Downtown). To put this in context, small businesses and non-profits in the Metro Center neighborhood were awarded funding at 5 times the rate of small businesses and non-profits in the next highest awarded neighborhoods ((Forest Park, Indian Orchard, Pine Point and McKnight) and 38 times the rate of small business and non-profits in the lowest awarded neighborhood (North End and Sixteen Acres). In addition, the Metro Center neighborhood received over $12 million dollars of the $28 million dollars awarded to businesses and non-profits while the rest of the neighborhoods in the City had to share the remaining $16 million dollars.

Quotes from City Councilors:
“The good news here is that we have an opportunity to right the ship with the remaining 47 million dollars that has not been allocated. Sometimes we can have the best intentions that result in unintended consequences to the very populations that you set out help. A lot of times the harm is irreparable. Fortunately, this does not have to be case so long as we are honest with ourselves about the data and learn from our mistakes. My advice to the administration is simple…slow down, be intentional about the distribution of the remainder of the money and let’s get it right for the residents, businesses, non-profits and communities who are still struggling in Springfield as a result of the disproportionate impacts of Covid-19” – Justin Hurst-At Large

“These results are alarming and disturbing yet not surprising. This is another glaring example of how the Mayor’s administration disguises the truth in the numbers presented. Originally, they only shared that 82% of the small business ARPA fund award went to minority owned business. However, they did not disclose the funding amounts until requested by me and Councilor Hurst. I encourage our constituents to dig deeper into the facts behind the numbers and what’s written in the Mayor’s press releases.
ARPA funds were designed to go to communities and individuals most economically devastated by Covid. However, the administration decided to give it to those most politically connected. The ARPA funds distribution demands and deserves a full investigation.
I hope the administration will do what’s right with the remaining ARPA funds available. Our most underserved residents and small business in Springfield need it!” – Tracye Whitfield-At Large

“After seeing the numbers for the division of resources from ARPA, which was intended for communities most impacted by COVID, I am saddened to learn that we aren’t doing anything differently than the rest of the country. The disparities in economics are by design and I thought that this was going to address the health disparities as well as economic disparity by injecting $123 million into our most vulnerable communities. I thought this because Springfield is being highlighted as having serious structural problems by the DOJ (Department of Justice) and I thought we were going to do something different. When we see the majority of the money going to a population other than black and brown, this is a big problem. It is time that we step up and do something different.” – Zaida Govan-Ward 8 ■