The Biden Administration unveiled new actions to address the widening racial wealth gap, with a focus on reducing discrimination in home appraisals and increasing federal procurement from small and disadvantaged businesses (DBEs) by 50%, or $100 billion, over five years. However, to truly close the wealth gap, substantial reforms are needed in the federal infrastructure procurement process. Current contracting practices disadvantage DBEs and must be overhauled through institutional reform, legislative action, and funding.

Drawing insights from Jane Jacobs' works, particularly The Economy of Cities and The Death and Life of Great American Cities, we critique past failures in government spending, especially when it comes to racial and economic inequalities in urban development.

The pandemic has devastated small businesses, with 32.2% fewer currently open compared to pre-pandemic levels. To support recovery and ensure fair opportunities for all, innovative financing models are needed.

The goal is to address three main challenges: rescuing businesses, promoting growth, and ensuring inclusion, particularly for minority-owned businesses that were hardest hit.

The Tulsa City Council recently approved the creation of the Tulsa Authority for Economic Opportunity (TAEO), consolidating multiple public entities to streamline economic development and address long-standing inefficiencies. This merger, driven by Mayor G.T. Bynum’s goal of fostering shared prosperity and racial equity, aims to leverage public assets for inclusive growth.

The testimony to the Philadelphia City Council on April 13, 2021, discusses strategies for using American Rescue Plan (ARP) funds effectively. 

The testimony stresses leveraging external resources and using safety net funding to support minority-owned businesses, particularly in sectors like childcare. It also highlights that ARP funds will arrive in waves, offering cities the chance to plan for both immediate needs and long-term goals.

The $1.9 trillion American Rescue Plan (ARP), highlights the critical role of local leaders in establishing multi-sector networks to efficiently allocate funds and promote resilient, inclusive economic growth.

We outline key funding streams, including formula funds, competitive grants, and public authority allocations, while clarifying application processes, timelines, and leadership responsibilities to ensure equitable resource distribution.

On March 11, 2021, President Biden signed the $1.9 trillion American Rescue Plan (ARP) into law to address the economic and public health crisis caused by the pandemic. To maximize its impact, local leaders must understand the full range of federal resources in the ARP and establish clear local priorities for deployment.

The COVID-19 pandemic has intensified challenges for minority- and women-owned small businesses. In response, the Nowak Metro Finance Lab, Accelerator for America, and the Mastercard Center for Inclusive Growth created the Small Business Equity Toolkit. This includes the Small Business Equity Tool (SBET), which provides data on business performance across different demographics, and the National Inclusive Metro Recovery Playbook, offering strategies for inclusive recovery.

The National Inclusive Metro Recovery Playbook, developed in partnership with Accelerator for America and the Mastercard Center for Inclusive Growth, addresses the severe impact of the COVID-19 pandemic on small businesses, particularly those owned by Black entrepreneurs.

The American Rescue Plan (ARP) offers substantial investments to support equitable recovery, particularly for Black- and Latinx-owned small businesses, which have been hit hardest by the pandemic. Local leaders should focus on building strong ecosystems that connect businesses to capital, resources, and mentorship. Key strategies include creating effective intermediaries, leveraging public funds to attract private investments, and revitalizing distressed neighborhoods.

The Biden Administration should draw inspiration from Nordic cities like Copenhagen and Helsinki, which have pioneered climate solutions. Helsinki’s Smart & Clean initiative, formed in 2016, brings together businesses, universities, and government actors to tackle climate challenges through collaborative projects like the Closed Plastic Circle, which aims to reduce plastic emissions.

Setting clear goals, fostering multi-sector collaboration, and having city governments drive systemic change are crucial for expanding climate action efforts, and these insights can help other cities, including those in the U.S., scale up their initiatives.

As Congress moves forward with the American Rescue Plan, focus is shifting to long-term recovery efforts that address issues like economic inequality and climate change. Central to this is federal investment in innovation districts, which combine research, startups, and corporate R&D to drive collaboration and tackle societal challenges.

The COVID-19 crisis has hurt small businesses, particularly Black- and Latino-owned ones. The "Big Ideas for Small Business" proposal urges federal action on procurement and data transparency to support these businesses. President Biden’s Executive Orders are a good start, but federal policy needs to learn from local and state successes in supplier diversity. By addressing procurement barriers and focusing on minority-owned businesses, the federal government can drive more inclusive economic growth.

The Cortex Innovation Community in St. Louis, a top global innovation district, has generated significant economic output, including $2.1 billion in 2018. Founded in 2002 on a former industrial site, it faced challenges due to COVID-19 and leadership transitions in 2020. With limited developable land left, the district is navigating its future through strategic planning. Despite these obstacles, Cortex remains a key driver of economic growth and innovation for the region.

The disproportionate impact of COVID-19 on Latino-owned businesses in the U.S., reveals deep disparities in their number, size, and revenue compared to non-Latino firms. It highlights how these businesses are essential drivers of the economy, yet they face challenges in accessing growth opportunities. The report also introduces the "Small Business Equity Toolkit," aiming to measure and support the recovery of Latino businesses, with specific insights drawn from metropolitan areas like San Diego, El Paso, and Tucson.

To maximize the impact of federal recovery funds, local leaders should establish 18-month economic recovery centers to coordinate and prioritize efforts across sectors. These centers would facilitate the effective deployment of relief and recovery resources, align local priorities with federal investments, and ensure equitable distribution.

By creating clear, actionable plans, local governments can leverage federal infrastructure, human capital, and innovation investments to drive inclusive growth, strengthen economies, and shape future recovery strategies.

Local economic stakeholders must take action without waiting for federal clarity. The attention now turns to advancing New Localism and enhancing the partnership between American cities, metros, and the federal government under the Biden Administration.

Local leaders can't afford to wait for federal clarity—they must act now. As the nation faces economic uncertainty, metro areas must organize recovery efforts, leveraging public, private, and philanthropic resources.

The COVID-19 crisis is the greatest economic shock since the Great Depression, and it is landing hardest on our nation’s small businesses, the heart of local economies and community life.

Supplier diversity and equitable access to capital are essential for the growth of small businesses, especially those owned by people of color. Charisse Conanan Johnson of Next Street emphasizes the firm's role in driving inclusive economic growth through business development programs and strategic partnerships.