Is Santa Clara County leaving small businesses behind?

On Oct. 20, the Santa Clara County Board of Supervisors voted unanimously to direct the county administration to identify up to $100 million in funding for a local, small-business financial aid package. The proposal, authored by Supervisors Susan Ellenberg and Joe Simitian, has been widely applauded by small-business and community leaders. If approved today, the proposal would be the most significant local effort to save our small businesses and give hope to our community until a COVID-19 vaccine becomes widely available.

Community leaders had reason to be optimistic about this proposal and looked forward to working collaboratively with the county to facilitate economic recovery. Instead, we were deeply disappointed to read the county administration’s report that does not give any concrete plan to execute a small-business relief fund, despite the unanimous vote from the County Board of Supervisors to put together an actionable proposal. The 45page report cites numerous reasons as to why the fund cannot be established without outside intervention.

The report also surveys available financial resources to imply that there are already systems of support for small businesses, without ever acknowledging that existing cash grant/loan programs are insufficient. It does not help when the county chooses to prioritize punitive fines against small businesses, as they did over the Thanksgiving weekend when $115,000 in fines were levied.

As more small businesses close due to these punitive regulations and the new stay-athome order, there will be more and more people falling into poverty, mental health challenges, homelessness and despair. According to a phone survey conducted by the Healing Grove Health Center, more than 14,600 people are at imminent risk of homelessness and the total rent debt of extremely low-income families is over $117 million. Low-income families of color are disproportionately impacted by staggering job losses due to the economic shutdown. Our neighbors are on the brink of homelessness and poverty. The poverty pandemic, human suffering exacerbated by the COVID-19 pandemic, is very real, and the problem is getting worse.

We would rather see the county help our small businesses and displaced workers. According to the U.S. Small Business Administration, California small businesses employed 48.8% of the private workforce. Small businesses and their employees are very much a part of the fabric of our community. They desperately need our support to survive this next COVID-19 surge and the upcoming dark winter. The $100 million relief fund is a start in the right direction and needs to have a solid plan that is actionable.

The county simply cannot turn its back on the small businesses and displaced workers who provide a tax base for local government to operate and help contribute to a thriving community. There should be a final financial aid package established no later than the first January meeting of the County Board of Supervisors. Without a significant pivot, the county will have failed to come up with a plan to support our small businesses, and that is a dereliction of duty on the part of the administration.

We were deeply disappointed to read the county administration’s report that does not give any concrete plan to execute a small-business relief fund, despite the unanimous vote from the County Board of Supervisors to put together an actionable proposal.