Negocios Now

www.negociosnow.com Diciembre 2021 13 By David Steinkraus O nce the emergency needs of people were being met during the beginning of the COVID-19 pan- demic, it became clear that the emergency response was not enough, said Gloria Castillo of The Chicago Community Trust. Leaders of the relief realized they needed to think about helping the whole community recover. Until last year, she was presi- dent and CEO of Chicago United, a corporate membership orga- nization focused on increasing parity in economic opportunities for people of color and minor- ity-owned businesses. She is now associate vice president of We Rise Together, an initiative of the trust to help people of color find better economic opportuni- ties during the recovery from the pandemic. What happened after the Great Recession of a decade ago illustrates what leaders want- ed to avoid this time, she said. "As we came out of it, the Black and Latinx communities did not recover in the same way that our white counterparts did. Our home values didn't come back. Our wages didn't come back in an equitable fashion. So it became clear to all of the partners that we really needed to make sure that this time the recovery was different," she said. Black and Latinx commu- nities were already disadvan- taged going into the pandemic, and they were hit harder, she said. In February and March of 2020, there was a 41% drop in active Black business owners and a 32% drop in Latinx busi- ness owners. Unemployment increased more among people of color, and all of this created hardship for families, she said. Community desires What trust leaders and their partners decided on is an accel- erator, a fund to pool money for grants that will create vis- ible change, and programs to change practices that have held back people of color. You may have already read about a first step: $7.4 million in grants from The Chicago Com- munity Trust to several projects around Chicagoland, such as Xquina Incubator and Cafe in South Lawndale. This project will redevelop about 13,000 square feet of commercial retail space to provide a business incuba- tor, co-working office, cafe, and shared commercial kitchen. "If people don't see that projects are being built in their community, they won't believe we are serious about having a positive impact in the commu- nity," Castillo said. Another round of neighbor- hood investment grants will likely be announced in January and another in March will focus on workforce development, she said. While there is a need to pro- duce results quickly, she said, there is also a need to be thought- ful and ensure money spent will produce maximum effect. Staff built a database of proj- ects across the city, she said, looking for those that would be catalysts, could be community or entertainment centers, and in particular had deep support in their community. Then business- es and nonprofits were asked for their suggestions. After the list was compiled, selected projects were invited to present grant proposals. Grants from We Rise Together have given lenders and funders more confidence, which in some cases eased access to capital for the projects, she said. Also coming next year will be three working groups, one each for South Shore, Chatham, and Lawndale, she said. These will include partners from busi- nesses and nonprofits who will work to make sure neighbor- hoods are supported with the resources they need. Chambers of commerce may be a part, as will representatives from city government who can help peo- ple overcome barriers, she said. Running in parallel will be 5/25 Move to Action. Named for the date on which George Floyd was murdered in Minneapolis, this initiative asks companies to commit to changing how they source employee talent and develop those employees, and to consider using Black- and Latinx-owned businesses. These actions cannot be seen on the surface of a business, but are very important for providing opportunities, Castillo said. INTENTIONAL CHANGE There is always a common assumption that the rising tide of a recovery will lift all boats, but it hasn't worked that way, Castillo said. "When you have structural inequities, the status quo sim- ply will retain those structural inequities, and it takes inten- tional work to create some shift that develops greater equity," she said. "We are in a moment when people have realized that without intentionality, without focus, we can't create change." Chicago traditionally has been roughly one-third Latinx, one-third Black, and one-third white, she said. "If you leave two-thirds of that population behind, there is no way that this region can thrive," she said. Instead, peo- ple will leave, which reduces the tax base and increases social instability. "So for the well-being of all residents of our region, it really requires that we work together and deliver meaning- ful change." We Rise seeks economic recovery for everyone The Chicago Community Trust donated $7.4 million in grants to several projects around Chicagoland, such as Xquina Incubator and Cafe in South Lawndale. Gloria Castillo

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