Spring 2019 Metro Has Been Busy Constructing the Future of Mobility for LA County

metro.net

We’re helping local businesses as we build.

Metro’s Pilot Business Interruption Fund and Crenshaw/LAX Pilot Business Solution Center Report spring 2019 Metro has been busy constructing the future of mobility for LA County. We have continued to ensure that LA County’s small businesses continue to thrive as we build the future of transportation for Los Angeles.

Although many of our “mom and pop” businesses located along transit corridors have been challenged by construction, Metro recognizes the opportunities that are created for small businesses when transit rail projects are completed and communities are connected.

Metro’s Pilot Business Interruption Fund (BIF) and Crenshaw/LAX Pilot Business Solution Center (BSC) continue to support small businesses sustain throughout construction. Both small business programs have been supporting small businesses impacted by Metro’s construction since the programs’ inception in 2014. This report provides an update on the accomplishments of these two first-ever pilot programs over the past four years.

“ I would like to thank Metro’s Business “The Business Interruption Fund and the Crenshaw/LAX Pilot Business Solution Center and the Business Solution Center have been instrumental in sustaining small, family-owned Interruption Fund for all the support and independent neighborhood businesses during construction. Metro provided during the construction of is committed to protecting the future of these small businesses and the the Metro line. We truly appreciate the surrounding communities they serve as we build a world-class transportation assistance. On behalf of our business, system in LA County.” I thank you.” – Business owner Mayra Hernandez Phillip A. Washington, Chief Executive Officer of Shop & Save Furniture has received Los Angeles County Metropolitan Transportation Authority support from the BIF and BSC during the construction of Metro’s Crenshaw/ LAX Transit Project. through thesetwoprogramsisMetro’s priority. our communities,andensuringtheyhavesupport of businesses arevitaltotheeconomicsustainability PilotBusinessSolutionCenter.Crenshaw/LAX Small resources forthepilotBusinessInterruptionFund and Metro continuestocommitanunprecedentedlevelof october 2014 july 2014

Fund Business Interruption to establishthepilot authorization forMetro provided Directors Metro’s Boardof Center Pilot BusinessSolution Metro’s Crenshaw the establishmentof Directors authorized Metro’s Boardof

2014 BSC BIF ( BIF (

BSC ) . ) . / LAX december 2015 february 2015 BIFformallylaunched. april 2015 Connector. segment oftheRegional such asthe2nd six continuousmonths, duration greaterthan street closureswitha unprecedented full by directly impacted and pop”businesses BIF toinclude“mom the expansionof authorized Directors Metro’s Boardof BSC formallylaunched. 2015

/ Broadway

december 2016 december 2016 Extension Section2. along Metro’s PurpleLine transit railconstruction directly impactedby and pop”businesses BIF toinclude“mom the expansionof Directors authorized Metro’s Boardof Crenshaw businesses alongthe of servicestosmall an increasedlevel BSC programtoprovide Metro expandedthe 2016 / LAX corridor.LAX

• • march 2017 march 2017

• • Crenshaw project corridors: along theseMetro transit impacted businesses assistance todirectly $8 millioninfinancial BIF providedmorethan transit corridor. the Crenshaw businesses along to morethan300 BSC providedassistance 2nd/Broadway segment Regional Connector, Little Tokyoarea Regional Connector, Section 1 Purple LineExtension 2017 small /

LAX that / LAX

businesses metro

has

january 2018 • june 2018 • • Crenshaw these Metro corridors: impacted businessesalong assistance todirectly $15 millioninfinancial BIF providedmorethan to expertprofessionals. more than1,000referrals transit corridorwith the Crenshaw/LAX business ownersalong BSC providedsmall Little Tokyoarea Regional Connector, Section 1and2 Purple LineExtension

have 2018 dedicated 670 more

benefitted / LAX

than

these

from

february 2019 • • march 2019 february 2019 two • Crenshaw/LAX corridors: Metro transitproject businesses alongthese to directlyimpacted financial assistance than $20.1 millionin BIF hasprovidedmore Extension Section3. along Metro’s PurpleLine transit railconstruction directly impactedby and pop”businesses BIF toinclude“mom the expansionof Directors authorized Metro’s Boardof assessment. have completedintake/ over 300businesses LAX transitcorridor;and along theCrenshaw/ than 400businesses BSC hascontactedmore Little Tokyoarea Regional Connector, Section 1and2 Purple LineExtension

the 2019

programs

resources

we have awarded over $20.1 million in grants340 to more than small “mom and pop” businesses.

“ Our experience with Metro and the BIF has been great. Staff made certain that we understood all the phases of the street closures and how to keep our customers informed, thus minimizing our customers’ inconvenience. Staff was also instrumental in helping us regain and recuperate lost revenues from the street closures.” – Business owner Elizabeth Villarreal of Brides by Liza has received support from the BIF during the construction of Metro’s Purple Line Extension Section 2. Since the inception of the program, the Business Interruption Fund has provided financial assistance business to “mom and pop” businesses impacted by Metro’s transit rail construction. Metro’s projects will be transformative to communities throughout LA, interruption thus we look forward to continuing to help fund businesses thrive during and after construction. Metro’s Board of Directors recognizes receiving a grant, Metro continues the importance of supporting small to support the businesses’ ability businesses during construction to sustain through the challenges and how vital it is to the economic of construction. sustainability of communities. As such, the agency’s commitment is Small businesses that have received unwavering to small businesses; as grants represent an amazingly we continue to designate $10,000,000 diverse business community that is annually for implementation of the representative of LA County. Owners Business Interruption Fund. of restaurants, retail stores, salons, auto repair shops, dry cleaners and In collaboration with Pacific many other specialty businesses have Coast Regional Small Business been helped by the BIF. Development Corporation (PCR), a well-known Los Angeles based Recognizing Metro’s commitment to Community Development Financial being a trusted community builder Institution (CDFI) and Small Business and partner, it has been a priority to Development Center (SBDC), Metro outreach and engage business and has provided financial assistance community members. to more than 340 small “mom and Since launching the BIF, Metro pop” businesses located along staff has attended more than 150 the Crenshaw/LAX Transit Project, community meetings and events, the Little Tokyo area and the 2nd/ and hosted more than 50 workshops Broadway segment of the Regional throughout our diverse communities. Connector, and Section 1 and Section This level of engagement has resulted 2 of the Purple Line Extension. in extraordinary confidence from The BIF has demonstrated Metro’s business owners and community ongoing commitment to the members, and continues to communities and business corridors demonstrate Metro’s commitment that have been impacted by transit rail to help businesses as we build for construction. With 85% of businesses the future. remaining open 12 months after Business Interruption Fund Facts at a Glance Business Information monthly as of march 2019 quarterly as of cy2018 q4

1115 BIF Applications Submitted Businesses by Category 5% 673 Service 3% 30% Retail 241 1% Professional 51 106 44 61% Commercial Property Owners Crenshaw/LAX Purple Line Extension Purple Line Extension Regional Connector, Regional Connector, Transit Project Section 1 Section 2 Little Tokyo Area 2nd/Broadway Segment Non-Profits

$20,197,675.33 Value of BIF Grants Awarded Businesses by Years of Operation $11,523,253.31 24% 23% 2 to 5 years

$4,734,838.79 26% 6 to 10 years $1,896,164.16 27% $1,093,255.04 $950,164.03 11 to 20 years 21+ years Crenshaw/LAX Purple Line Extension Purple Line Extension Regional Connector, Regional Connector, Transit Project Section 1 Section 2 Little Tokyo Area 2nd/Broadway Segment

Measures of Effectivenessquarterly as of cy2018 q4 858 BIF Grants Awarded 504 100% 97% Businesses referred to 187 support services post Completed applications 93 processed within nine 38 36 grant award goal: 75% business days goal: 100% Crenshaw/LAX Purple Line Extension Purple Line Extension Regional Connector, Regional Connector, Transit Project Section 1 Section 2 Little Tokyo Area 2nd/Broadway Segment 87% Clients satisfaction rating 341 BIF Grantees 93% goal: 100% 189 Businesses remaining open after six months of grant award 85% 83% 72 goal: 100% 24 33 23 Businesses remaining Businesses remaining open after 12 months open after 24 months of grant award of grant award Crenshaw/LAX Purple Line Extension Purple Line Extension Regional Connector, Regional Connector, goal: 100% goal: 100% Transit Project Section 1 Section 2 Little Tokyo Area 2nd/Broadway Segment “ Metro’s BSC has been instrumental in assisting us. The staff has and continues to provide much needed help with grant funding, website design and a host of other support services. I am also grateful for the % assistance received from the BIF. 53 Thank you, Metro, for supporting of bif grantees are community-anchored businesses my business!” and have been operating for more than – Business owner Cary Jordan of Jordan’s Hot Dogs has received support from the BIF and BSC years. during construction of Metro’s 10 Crenshaw/LAX Transit Project. Spanning four years, Metro’s first-ever Business Solution Center (BSC) continues to provide hands-on business support services and referrals to small businesses along the Crenshaw/LAX Transit Project corridor.

The BSC was created to provide has provided hands-on assistance business development, support to more than 300 small businesses. services and referrals to a network Metro continues to deliver business of providers to the small businesses development services to small within the Crenshaw and Inglewood businesses within these communities, communities impacted by and referrals to experts in areas construction of the Crenshaw/LAX such as: accounting management, transit line. The BSC has continued access to financial capital, brand to serve the South Los Angeles development, marketing, social media business community impacted by and specialized business service transit rail construction through a areas resulting in more than 1,000 dedicated resource center located individual referrals. Referral experts within the community along the are often partners and small business Crenshaw/LAX corridor. owners located within the Crenshaw and Inglewood communities allowing The mission of the BSC is to enhance for community collaboration, the capability of impacted businesses economic uplift and reinvestment. to persevere through disruptions caused by construction and ultimately Focusing on long-term business take advantage of opportunities planning and leveraging technology, arising from the completion of the Metro’s BSC has provided lasting Crenshaw/LAX Transit Project. solutions through the development of more than 20 first-ever business Metro’s BSC is delivered by a team websites for small business owners. of small business and economic Websites are designed at no cost in development professionals. Metro consultation with each individual in partnership with Del Richardson business owner. Metro’s BSC designs, & Associates Inc. (DRA), through an tests and provides maintenance for established collaborative with Vermont each site and assists with website Slauson Economic Development content, photography of merchandise Corporation (VSEDC) and the and business location, search engine Los Angeles Urban League (LAUL), optimization, e-commerce and more. Business Solution Center Facts at a Glance Areas of Service quarterly as of cy2018 q4 quarterly as of cy2018 q4

4% 6% 5% 4% Businesses Contacted by Location – 460 4% 3% 227 20% 14% 152 22% 27%

25% 32 22 27 20% 24% 22%

North of 48th to South of Inglewood Other Area 48th St 60th St 60th St Area (Target Area) Alignment 48th to 60th – At Grade

Method of Contact 340 Accounting Management Marketing Access to Capital Social Media & Website Business Development Zoning & Land Use 52 60 8 Business Interruption Fund

Canvassing Email/Phone Walk-In Website

Measures of Effectivenessquarterly as of cy2018 q4 Business Support Status 1127 100% Service request 46% 351 responded to within 68 48 business hours Businesses that complete goal: 100% service recommendations goal: 100% Intake/ Referrals Case Assessment Management (Target Area) 88% BSC clients that engaged Client by Industry Type in services post intake/ assessment 5% 76% 6% goal: 80% Auto Health Businesses sustained in Beauty Media operations six months 16% Business Services Non-Profit post BSC intake 17% 75% 94% 9% Education Religious goal: 100% Businesses sustained Client satisfaction 12% 1% Food Services Retail in operations 12 months rating (based on 14% 2% Financial Services Other 13% post BSC intake 18 businesses) 3% goal: 100% goal: 90% 2% the bsc has referred over 300 businesses to resource providers, experts and economic development professionals throughout la county.

“ Through the Metro BSC, I was able to attend informative workshops and received direct assistance in website development, mobile and search engine optimization, accounting and QuickBooks. The BSC staff has made a great difference toward helping me sustain and grow Ride On! Bike Shop/Co-op.” – Business owner Adé E. Neff of Ride On! Bike Shop/Co-op has received support from the BSC during construction of Metro’s Crenshaw/LAX Transit Project. Listening closely to our small business the bif and bsc collaboratives partners has provided us with first-hand have conducted more than knowledge, lessons learned and best 730 practices to enrich and improve the BIF and direct outreach activities to successfully BSC programs. In the last four years, we have engage the small business community. been able to incorporate enhancements and deliver the programs with greater innovation.

We have learned that direct Capturing feedback and promoting community outreach and in-person engagement of the small business engagement is the most effective community early into the implementation way for building community trust of the small business programs has and engaging the community in the provided an opportunity to enhance the programs. This has led to delivering structure of each of the pilot programs. programs that meet the needs of the Consistently gathering feedback and businesses impacted by construction. ensuring ongoing program engagement over the last four years has afforded Each program has been delivered Metro an opportunity to be collaborative, through a collaboration of small responsive and proactive with each of business professionals and Metro the pilot programs. staff. The great diversity of the business communities that comprise In delivering the BIF through defined our county demonstrates the program eligibility requirements importance of having diverse teams. and guidelines, Metro has ensured “ Metro’s expansion has impacted our Since the inception of the BIF equitable access to financial resources business in terms of reduced street level and BSC pilot programs, we have for businesses in each of the transit visibility and customer access. As such, learned that ongoing and clear rail project corridors. we are grateful that the BIF grant came when it did and touched that a communication between program program like this even exists. Despite staff, community members, our longevity of 32 years in the heart constituents and stakeholders, of LA, our small shop could not endure as well as collaboration with without the help and recognition of construction outreach staff are our community and those that run it. vital to the success of the small We look forward to serving our fellow business programs. Angelenos for another 30 years.” – Business owner Paula Kim of Kidsland has received support from the BIF during construction of Metro’s Purple Line Extension Section 1. “ We have been in Little Tokyo a long time and are thankful the Business Interruption Fund has been able more than to help since construction began. The assistance we received from Metro for our business has really , made a difference.” 1 200 jobs have been sustained through financial – Business owner Noboru Kakuma of NT Auto Repair has received support assistance provided by the bif. from the BIF during the construction of Metro’s Regional Connector Transit Project, Little Tokyo area. Metro’s Business Interruption Fund metro.net/bif