For New York City’s small business owners, the impacts of COVID-19 were immediate and tangible. Public safety measures abruptly shuttered non-essential businesses, leaving many New Yorkers without a source of income. Small businesses that stayed open have struggled to stay afloat amidst massive economic and political uncertainty while their debt swelled.
“We’re not in the clear. This is just the beginning,” warned VOLS Microenterprise Project client Aysha Saeed back in June. But as we enter the dark months of winter, the challenges facing small businesses are as great as at any point during the crisis.
The VOLS Microenterprise Project levels the economic playing field for New York’s small business owners, especially as the economic crisis has disproportionately impacted small businesses in outer boroughs and communities of color. Over 75% of our clients are people of color, two-thirds of are women, and many are immigrant business owners. Our response has focused on three categories of relief:
- Providing critical legal information and resources;
- Increasing capacity for direct legal pro bono advice and representation;
- Advocating for smart policies that would allow small business owners an opportunity to survive and recover from the pandemic.
This week, we are pleased to share that VOLS legal advocacy has helped to save two critical City laws — the Commercial Tenant Harassment Law and the Guaranty Law — that protect small businesses. Read more about our amicus brief presented in Melendez v. City of New York.
Thank you for being part of the VOLS community as we fight for New York City’s small businesses — the economic heart and soul of our city.
Best,
Arthur Kats and the Microenterprise Project Team
Volunteers of Legal Service
When disasters strike, New Yorkers have time and time again stepped up to the challenges facing our city. Today’s newsletter is part of VOLS’ New York, Together year-end reports on our 2020 impact and crisis response. Your generous support makes all the difference to the clients and communities we serve. Please donate today.
Providing Clients with Critical Resources & Information
As the COVID-19 pandemic unfolded and business closures began in March 2020, the VOLS Microenterprise Project team became a vital resource for small business owners to stay up-to-date on fast-changing rules, laws, and programs that affect their business. To better assess these needs, we surveyed 51 of our participating small business clients, 84% of whom have four or fewer employees, during March and April 2020. At the time, only 3 of these businesses reported as “fully operational,” and over half reported as “fully closed.” Many requested the following support:
- Legal information and assistance on how to meet their financial obligations;
- Application assistance for governmental benefits;
- A guide for negotiating a rent reduction or deferment;
- Or guidance on other critical business issues.
In response, the Microenterprise Project called upon our partner law firms and corporate volunteer experts to compile small business guides covering topics including Legal/ Government Resources, Financial Aid, and Insurance. We have continued to update the guides with information necessary for our clients to make informed decisions about their businesses. And we produced a Frequently Asked Questions guide video to address the concerns of commercial tenants, in English and Spanish. We collaborated with pro bono partners and the VOLS Unemployed Workers Project to create an unemployment insurance guide for newly expanded benefits to small business owners under the CARES Act. In a follow-up June survey of 16 small business clients, a substantial majority of respondents missed their April and May rent payments, and they requested advice on how to manage their landlord obligations. In response to these urgent needs, the Microenterprise team continues to update our informational guides to ensure awareness among our clients.
Legal Services & Partnerships
Together with our pro bono partners, VOLS has consistently served New York City’s smallest businesses, predominantly minority-, women-, or immigrant-owned and mostly comprising 5 or less employees:
- Through the NYC Commercial Lease Assistance (“CLA”) Program, VOLS has represented small business tenants with negotiating rent payment reductions, deferments, and lease terminations with their commercial landlords. CLA is an eviction prevention program during the most challenging commercial rent crisis in 100 years. We are proud to have worked alongside Brooklyn Legal Services Corporation A and TakeRoot Justice on this initiative for the last three years. On August 11, Mayor de Blasio was joined by NYC Small Business Services Commissioner Jonnel Doris and Assembly member Charles Fall to announce the program’s continued funding. VOLS will be further seeking private sector support to ensure these essential services can be provided, and we add our special thanks to Council Member Carlina Rivera for strongly advocating for the program. Click here to watch our Townhall with the Council Member and other partners.
- VOLS has engaged the private sector to provide brief legal advice to over 300 small businesses by co-founding a new pro bono network. In conjunction with our partners — Stroock, TakeRoot Justice, Legal Services NYC, IMPACCT Brooklyn, the Legal Aid Society, and over 20 law firms, companies, and other nonprofits — the Microenterprise Project launched the Small Business Legal Relief Alliance (“SBLRA”) rapid-response initiative. Volunteers working with the SBLRA advise small business owners facing crisis situations related to financial aid, taxes, commercial leasing, contracts, employment, and business insurance.
The Microenterprise Project has worked tirelessly to expand capacity both on-staff and in our pro bono network to meet the tremendous need for direct legal services to small business owners in the City and has recommitted to serving the community throughout this crisis toward recovery.
But don’t take our word for it! Hear directly from VOLS clients and partners on the VOLS Microenterprise Project’s YouTube Playlist.
Policy & Advocacy
Finally, VOLS has continued to advocate for smart and supportive policies aimed at getting much needed tools for recovery and resilience to New York City’s small business community. We are an active member of the United for Small Business NYC coalition, which successfully urged the New York City Council to enact and then strengthen legislation prohibiting commercial tenant harassment tied to pandemic effects and suspending a business owner’s personal liability for pandemic-related losses incurred beyond their control. The Microenterprise Project has also called on the City Council to take the additional step of providing equitable rent relief to small business tenants. On November 25, 2020 the federal district court in Manhattan dismissed a lawsuit that threatened these critical protections, citing VOLS’ amicus brief in its opinion.
Despite the all-in commitment and re-commitment of our staff, pro bono partners, and community partners, there remains vast unmet need for the small business community. As we think about the shuttered storefronts in our streets and neighborhoods, please consider donating to VOLS in support of small business owners to ensure that they survive and thrive beyond this incredibly difficult year.
When disasters strike, New Yorkers have time and time again stepped up to the challenges facing our city. Today’s newsletter is part of VOLS’ New York, Together year-end reports on our 2020 impact and crisis response. Your generous support makes all the difference to the clients and communities we serve. Please donate today.