The COVID-19 pandemic has been devastating for small businesses, particularly small, black, indigenous, people of color (BIPOC) owned businesses that serve our most vulnerable populations. Los Angeles County is also home to the largest concentration of minority‐owned businesses in the United States. Of the 244,000 small businesses in the County, more than 55% are BIPOC-owned. Over 93% of all businesses in the County have 20 or fewer employees and COVID‐19 has affected these small businesses disproportionately. In addition, businesses, community-based organizations (CBOs), and nonprofits impacted during the pandemic, in the highest, high, and moderate vulnerability index areas, faced additional barriers in the recovery process. The Department of Economic Opportunity (DEO) has created the Economic Opportunity Grant (EOG) program, which integrated the following grant programs through a single streamlined online application process: (i) Keep LA Dining, (ii) LA Regional COVID Fund: Small and Microentrepreneur Grants, (iii) LA Regional COVID Fund: Nonprofit Grants (iv) Youth Workforce Development Partnerships, and (v) State of California Microbusiness Covid-19 Grant of $12.6 million targeting microbusinesses.
EOG – Phase Three
With the additional funding of $4.8 million allocated to the LA Regional COVID Fund: Small and Microentrepreneur Grants of the EOG, the DEO will implement an expanded phase to provide grants to small and microbusinesses across the entertainment industry, including those small and microbusinesses in ancillary sectors that support the entertainment industry that were impacted by the COVID-19 pandemic and the resulting economic disruption.
The pandemic upended the Los Angeles regional economy. Certain industries were more severely impacted than others due to their dependance on in-person customers and their inability to transition to remote work like the tech or professional services industries did. According to research conducted in 2020 by the Los Angeles County Economic Development Corporation (LAEDC), five industries were hit the hardest during the pandemic based on employment data. They are:
ARTS, ENTERTAINMENT & RECREATION EMPLOYMENT
• SEP. 2019: 98,200 Jobs
• SEP. 2020: 60,900 Jobs - 38% Loss - 37,300 Jobs lost year over year.
• Jobs Added May-October 2020: 15,700 (38.1% Recovered from March/April Job Losses)
• Impacted Occupations: Amusement & Rec Attendants (3,670 Jobs Lost); Ushers & Lobby Attendants (2,400 Jobs Lost)
MOTION PICTURE & SOUND RECORDING EMPLOYMENT
• SEP. 2019: 135,300 Jobs
• SEP. 2020: 98,800 Jobs - 27% Loss - 36,500 Jobs lost year over year.
• Jobs Added May-October 2020: 8,700 (15.2% Recovered from March/April Job Losses)
• Impacted Occupations: Producers & Directors (6,600 Jobs Lost); Actors (4,660 Jobs Lost)
Other impacted sectors that are part of or support the Entertainment Industry include: Rental Companies such as Prop Houses, Set Designers, and Clothiers
• Floral Companies
• Transportation Companies
• Printers and Framers
• Graphic Designers
• Publicists, Agents, and Managers
• Talent Agencies
The priority of the EOG will be to address the barriers faced by small and microbusinesses, particularly those in the highest and high tiers of need that had their businesses negatively impacted by the COVID-19 Pandemic. However, businesses located in moderate COVID-19 impact areas are also serving under-resourced communities and may have barriers similar to those in the highest and high tiers. The planned breakdown of awards by 1/3 highest tier, 1/3 high tier and 1/3 moderate tier aligns closely with the ARDI-adopted target percentages for ARPA programs. Awards will be randomized within each tier. In summary, the online EOG application process will provide ease of access to much needed capital to support small businesses during the post-pandemic recovery process. The program is reaching those in most need, grants will be distributed in one round. Directed and focused outreach strategies will focus on the sectors listed above.
Phase 4 : EOG Holiday Grants
With approximately $600lk in unspent funds, DEO opened in later 2024 applications for Economic Opportunity Holiday Grants to assist businesses and nonprofits that are still struggling to recover from the financial impacts resulting from the COVID-19 pandemic. It is designed to support qualified small businesses, microentrepreneurs, food industry businesses, and non-profits in Los Angeles County impacted by COVID-19 with grants of $3,000 or $5,000.
