Congressman McGovern Lends Voice To Black Business Leaders’ Application For Local ARPA Dollars
Members of the Black Business Association of Amherst Area and town residents meet with Congressman Jim McGovern on July 6. From the right sitting down Ellisha Walker, Junior Williams, Jacquelyn Smith-Crooks. From the right standing Edward Cage, Vira Cage , Heather “Hala” Lord, Congressman Jim McGovern, Amilcar Shabazz, Patrick Chapman, Pat Ononibaku, Kathleen Anderson, Jamie Daniels, Mulazimuddin Rasool, Nai mag Muhammad, Ty Ward. Photo: Koby Gardener-Levine
Source: Black Business Association of Amherst Area
U.S. Representative Jim McGovern met with affiliates of the Black Business Association of Amherst Area (BBAAA) on July 6 at BakuCare Adult Day Health in Hadley. The Congressman expressed his support for BBAAA to receive local ARPA funds and said he would reach out to local officials. The Congressman was accompanied by Regional Manager and Amherst native Koby Gardner-Levine, who assisted in scheduling the meeting upon the request of BBAAA member Edward Cage after the Congressman’s June 3 visit to the Bangs Community Center. Others in attendance included Amherst residents and Town Councilor Ellisha Walker. BBAAA members provided testimony about their experiences as residents of Amherst and about their not feeling part of the community. The owners of Hazel’s Blue Lagoon expressed frustration with having to make costly repairs and renovations to their leased space to address an ever-evolving list of building code violations before they were even allowed to open.
BBAAA President Pat Ononibaku stated, “We are thrilled Congressman McGovern accepted our invitation to meet and to listen to the real economic hardships BBAAA members are facing as we seek his advocacy for earmarks and grants for the group.”
Ononibaku continued her statement: “The American Rescue Plan, the first major piece of federal legislation in 2021, brought billions of dollars to Massachusetts. Direct payments were made to individuals and support given to businesses, as well as to state and local governments. The Town of Amherst received $11.9 million, but none of these funds thus far have benefitted any existing black-owned businesses.”
The COVID-19 pandemic hit greater Amherst hard. In addition to the widespread outbreak of the virus itself, most of the region’s service sector was shut down for months, and unemployment soared for those who could not work remotely. The best data sources reveal that the pandemic hit lower-income and communities of color much harder than others. The health crisis, combined with preexisting social and economic problems in greater Amherst, served to exacerbate inequalities.
BBAAA was established in 2016, by a group of black business owners in Amherst due to invisibility and isolation within the larger business community. There are more than twenty members and membership is free to any business owner who identifies as black. The mission of BBAAA is to support the establishment and sustainability of black-owned businesses to contribute to diversity, equity, inclusion and economic growth in Amherst, Massachusetts, and surrounding areas through programs of education, mentorship, resources, mutual support, and strategic community engagement.
I am trying to understand this statement
It should also be noted that of the 21 businesses that received ARPA funding in the first round of distribution, only 8 identified as BIPOC owned, and, in their allocation of ARPA funds, the BID classified “white women owned businesses” as minority and marginalized owned businesses.
If 8 BIPOC businesses received ARPA funding, is this statement true?
The Town of Amherst received $11.9 million, but none of these funds thus far have benefitted any existing black-owned businesses.”?
This is an honest question–Help!
Diane – I am and have been more than willing to answer any questions about this grant of ARPA funds. The BID had a contract w the Town to distribute 100,000$ of the almost 12 million $ of ARPA funds. The main stipulation was that 50% of funds be awarded to “BIPOC: Black, Indigenous, People of Color, women owned and LGBTQ+“ also known as “marginalized communities. The BID awarded 97% of the grants to this designation. We successfully went above and beyond the 50% required. Before the ARPA funds were a thing, the BID, through the Downtown Amherst Foundation, during the height of the pandemic, raised close to 500,000$ that we awarded to Amherst wide businesses in many forms (grants, ppe, marketing etc) which also went to an overwhelming % to marginalized businesses with no contracts or restrictions. The BID and the DAF worked tirelessly throughout the pandemic and continue to do so. The BID and the DAF are each 501 c not for profits which are recognized by the state and federal government with annual,!independent, professional, fiscal, public audits. The BID and DAD have 2 separate boards of directors, each of which have BIPOC & LGBTQ+ members of this community who serve on them. We work on building up community and small businesses and are very proud of the BIPOC support our organizations have been able to provide, be it in small business and marketing support, advocating at the state and federal level, bringing musicians of all genres and races to the stage for this community or the incredible amount of work we do to support the local High school,library, survival center, Family Outreach and so much more. The Towns DEI and Human Rights Commission has a publicly available document that addresses many of these claims and finds our organizations to be exemplary in our work. My office is open every day, in downtown. My email and phone number at work are readily available, we have expressed here and in other media outlets that we are happy to address concerns and to set any records straight. I thank you, in advance, for seeking answers to questions.
Sincerely
Gabrielle Gould
Executive Director BID
volunteer ED and founder of DAF
It should be noted the Drake received $300K in ARPA funds without an application process or a bid. Of that, $150K went to spruce up Amherst Business Improvement District (BID) President’s property leased by the Downtown Amherst Foundation for the Drake. The BID President also made out with the ARPA allocations because White Lion is a new business that was awarded ARPA funds to lease up with his commercial space underneath the Drake.
It should be noted the previous respondent did not answer the true or false question with a true or false response.
Amherst Business Improvement
BOARD OF DIRECTORS
Barry Roberts, President
Jerry Jolly, Vice President
Sharon Povinelli, Treasurer
Tony Maroulis, Secretary
Jeremy Austin
Sarah Barr
Paul Bockelman
Andrew Bohne
Ewen Chen
Gerry Jones
David Mazor
Sharon Sharry
Downtown Amherst Foundation
BOARD OF DIRECTORS
• Tony Maroulis, President
• John Kuhn, Vice President
• Susan Bain Bellak, Treasurer
• Clare Bertrand, Secretary
• Jim Brassord
• Amy Gates
• Carol Learned-Miller
• Jon Niedzielski
• Sharon Povinelli
• Thomas Reidy
• Irv Rhodes
• Yasmin Eisenhauer
• John Snyder
Relief and Resiliency
Microgrant Committee
• Glenn Barrett – CEO and Chairman, Ortholite
• Ellen Brout Lindsey – Volunteer Non-Profit
Consultant
• Tony Maroulis – Executive Director of External Relations & University Events
• Dr. Irvin Rhodes – Organizational
Development Consultant
• Ralph Tate – Investment Management, Kestrel Land Trust
Relief and Resiliency
Microgrant Team
• Gabrielle Gould – Executive Director, Downtown Amherst BID & Downtown
Amherst Foundation
• Claudia Pazmany – Executive Director, Amherst Area Chamber of Commerce
• Ann Tweedy – Marketing Director, Downtown Amherst BID
• John Page – Marketing and Membership
Manager, Amherst Area Chamber of Commerce
A simpler question?…
Does the Jones Library qualify as a business? Aside from the Town Manager, a non-voting liaison, I (want to) presume, why is a town Department Head a member of the BID?
James Murphy
So on the Town Website, it says the total allocated to economic development was $750,000. $450,000 of that was obligated. Leaving $300,000 left. What was the $450,000 obligated towards?
It then says $61,000 was awarded to marginalized groups out of $64,000 in total. Of that 35,000 went to BIPOC businesses. Clearly these numbers do not include the money that went to the Drake, a non-profit owned by a non-minority individual. Would the percentage still be 95% if the money given to the Drake was included in these calculations? 95% out of $64,000 allocated seems good, but what about how much of the total 750,000 allocated went to BIPOC owned businesses and non-profits? The numbers in the town’s spreadsheet are not representative of the total amount of money.
How much did the Drake project cost in total? It was undoubtedly a great success for our community, but is it ethical to award non-profit money to improve a space that is owned by the president of said non-profit’s board? The 300,000 for the Drake uses non-profit money to increase the revenue and property values of the President of the board’s personal property.
Personally, I manage finances for multiple non-profit entities and direct where those funds are used. Never would I feel it would be appropriate to use those non-profit funds that I manage to improve the value/quality something I own personally (never-mind a large building). That would be using funds meant for a specific cause (the public good) for my personal monetary gain. Is it unreasonable to hold the BID as an entity to the same standard? After all, $150,000 in improvements to a property is a large sum of funds and non-profit entities using public funds should be somewhat accountable to the public to make sure the use of said funds does not further enrich the private interests of an already wealthy real-estate investor.
Thank you to both Vira and Gabrielle for your insights! Please feel free to correct me if any of this information is wrong, as I personally found the presentation somewhat confusing.
ARPA Funds Distribution Fiasco
I raised bias and ethical concerns regarding the allocation of ARPA funds to the business community last summer of 2022, but some town government officials and the BID/DAF director doubled down on their narrative that the ARPA funds were distributed from “equity lens” and “marginalized business owners” were awarded 95% of the funds.
Detailed breakdown of ARPA money disbursed to the entire business community, was provided by the town finance director, Sean Mangano in 2022 and 2023 at my request. The documents should be publicly available on the town’s website in the CSSJC meeting packets.
A total of $364,000 was disbursed to 18 businesses. White owned private night club business-DRAKE received $300,000 (82%). Ten additional white owned businesses were awarded $28,500 (8%). A total of eleven white owned businesses received $328,500 (90%). One white owned business was approved for technical assistance.
Seven BIPOC business owners received $35,500 (10%). One BIPOC owned businesses was approved for technical assistance while another BIPOC owned business declined technical assistance. Existing black owned businesses who are members of Black Business Association of Amherst Area (BBAAA) including black owned night club, Hazel Blue Lagoon. did not receive ARPA funds.