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4/21/2020 Mayor Pulido and City Councilmembers City of Santa Ana 20 Civic Center Plaza P.O. Bo 1988, M31 Santa Ana, CA 92701 Re: 75B. COVID-19 Response Funding Plan Dear Members of the Council, The Central Intersections Initiative is composed of multiple organizations that are working together to address the issues of Economic Development, Housing, and Mental Health. The goal of Intersections is to impact systemic change and determinants of health in Central Santa Ana and Stanton. The Central Intersections Initiative includes organizations that have worked alongside and in service of Santa Ana residents. The COVID-19 pandemic has exacerbated needs that were already existing in our communities. As you make amendments to your 2015-2020 Consolidated Plan to access emergency funding intended to assist in making a timely response to the impacts of the COVID-19 pandemic we ask that you consider/prioritize Economic Development, Housing, and Mental Health resources. Economic Development: Small businesses have been especially impacted as many do not have the working capital to weather months of mandated shut -down while maintaining payrolls and employment benefits. The amendments being proposed include expanding the city's existing Small Business Incentive Program with $500,000 to provide additional loans and grants. We recommend the following actions to make the program more accessible to the city's small businesses by: 1) creating a Worker Cooperative Development Fund for grants to nonprofits or community organizations that provide incubation and conversion programs, training and technical assistance, 2) rebuilding a robust local economy by waiving business and occupation taxes, permit and license fees for small businesses. For microbusinesses—those with less than five employees —we call on the city to provide grants that cover 40% of payroll costs for the duration of shelter -at-home, and 3) holding larger companies accountable to worker policies around collective bargaining rights and paid sick leave; and more. • City policy can support workers and small businesses by providing incentives towards the formation of worker cooperatives. Inclusive economic development addresses the root causes of economic disparity and supports wealth building amongst City residents most vulnerable to displacement. o Worker cooperatives are a successful manner in which low-income communities of color can build wealth and thrive. More than half of worker cooperatives in the United States today were designed to improve low -wage jobs and build wealth in communities most directly affected by inequality, helping vulnerable workers build skills and earning potential, household income and assets. o According to the New York Times, "by placing workers' needs ahead of profits, they address the root cause of economic disparity." (3/23/14) • Small businesses and workers have been bard hit by COVID49, and many will struggle to reopen. o Businesses with fewer than 100 workers make up about one-third of national employment, and serve as vital anchors in local communities. Cities like Seattle and New York have mobilized efforts in support of their small businesses, and we need Santa Ana to be a much needed first responder for ours. • Workers need to be protected now and always. COVID-19 revealed the importance of paid sick leave and access to health care and coverage for all workers.