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Sponsor Statement ALASKA STATE LEGISLATURE WHILE IN SESSION WHILE IN ANCHORAGE STATE CAPITOL 1500 W BENSON BLVD JUNEAU, AK 99801 ANCHORAGE, AK 99503 (907) 465-3704 (907) 269-0169 May 5, 2020 Mayor Ethan Berkowitz 632 W 6th Avenue Suite 840 Anchorage, Alaska 99501 Dear Mayor Berkowitz, Thank you for your leadership during this challenging and unprecedented time. We appreciate your frequent briefings and inclusion of medical professionals, business leaders, and neighbors. We are writing today with deep concern regarding early distribution of the CARES Act funds that did not make it to many small businesses in Anchorage. As of April 16, over 5,000 Alaskan businesses have received emergency relief loan funds through the Federal CARES Act. However, during a recent discussion with Anchorage Community Land Trust (ACLT), we learned that a substantial number of businesses located in Anchorage’s economic opportunity zones have not been able to access those loans. According to a survey conducted by ACLT, many small businesses located in these economic opportunity zones are experiencing significant barriers in qualifying or applying for these federal loans. As the Paycheck Protection Program and Economic Injury Disaster Loans were specifically created to retain employees, small businesses with less than 50 employees that do not have sophisticated relationships with large financial institutions, a robust bookkeeping system, are seasonal, or are recent start-ups are left unable to access these loans. The net result of the above barriers means many small businesses located in Anchorage’s economic opportunity zones, specifically those that are minority and women-owned, are unable to access the financial resources needed to sustain their operations during the COVID-19 related mandatory closures. As small businesses are the backbone of our economy, we strongly urge the Municipality of Anchorage designate a portion of their incoming federal relief funds to support local small businesses with less than 50 employees. In addition, we recommend that the Municipality of Anchorage specifically allocate funding to organizations or entities that work in and within these Anchorage’s economic opportunity zones for disbursement to small businesses located in these geographic areas. Organizations that have the existing relationships within Anchorage’s economic opportunity zones are best situated to provide the appropriate technical support to ALASKA STATE LEGISLATURE ensure business landlords receive their rents, and our small businesses can weather this unprecedented period to continue serving our community. We appreciate your consideration of this proposal that would benefit thousands of residents across our city. We look forward to working with you to develop these important opportunities. Sincerely, Tom Begich Geran Tarr Senate Minority Leader Elvi Gray-Jackson Bill Wielechowski Harriet Drummond Ivy Spohnholz Zack Fields Gabrielle LeDoux CC: Jason Bockenstedt, Chief of Staff to Mayor Ethan Berkowitz Mark Begich and Sean Parnell, Co-chairs, Alaska Economic Stabilization Team Ben Stevens, Chief of Staff to Governor Mike Dunleavy Suzanne Cunningham, Legislative Director to Governor Mike Dunleavy Nils Andreassen, Executive Director, Alaska Municipal League .
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