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.

COVID-19 has emphasized both the necessity of national intervention and the strength of local leadership. Cities, functioning as networks of public, private, and civic institutions, have demonstrated agility in addressing economic and social challenges. Moving forward, a balanced approach—combining national investment with devolved local flexibility—will be essential for an inclusive and sustainable recovery.

COVID-19 has exacerbated longstanding challenges in Philadelphia, including poverty, inequality, and economic sustainability. In response, the city must design an inclusive recovery strategy, leveraging local institutions such as universities, hospitals, and philanthropic organizations. The plan includes creating a $250 million Regeneration Fund to support innovation, workforce skills upgrading, business development, and community resilience.

The COVID-19 crisis has exacerbated challenges for small businesses, particularly Black-owned enterprises, due to inadequate federal relief efforts and limited research funding.

Cities must take action by analyzing business ecosystems, engaging anchor institutions in procurement shifts, strengthening business incubators, innovating financial products, and securing community benefits through policy change.

Five months into the COVID-19 crisis, small businesses, particularly minority-owned, continue to struggle. Federal relief efforts like the HEALS Act provide some support, but they fall short for very small businesses.

The RELIEF for Main Street Act advocates for direct funding through state and local governments, enabling faster and more equitable distribution. This approach, combined with reforms to existing programs, aims to ensure a more inclusive and sustainable recovery for small businesses.