Archinect - News

Architecture Billings Index in April signals regained confidence with third consecutive month of positive billings

2021-05-19T13:48:00-04:00

Continued economic recovery and strengthening confidence are the main takeaways from the latest report released by the American Institute of Architects this morning. After rising to a score of 55.6 in March, the Architecture Billings Index (ABI) for April expanded to 57.9 — the third consecutive month of positive billings with scores not reported since before the Great Recession.

The scores for new project inquiries and new design contracts climbed to record readings of 70.8 and 61.7 respectively.

Meanwhile hiring in the architecture industry is continuing to rebound, but remains volatile, as seen in Archinect's industry-leading architecture job board.

April ABI Highlights

Regional averages: Midwest (60.6); South (58.3); Northeast (55.0); West (52.4)
Sector index breakdown: commercial/industrial (59.1); multi-family residential (56.9); institutional (56.7); mixed practice (55.0)
Project inquiries index: 70.8
Design contracts index: 61.7

"This recent acceleration in the demand for desig...

Architecture Billings Index in March continues recovery, reaches new heights

2021-04-21T14:16:00-04:00

The American Institute of Architects released its latest economic report this morning, and the overall trajectory is welcome news to the architecture industry: rising to 55.6, the Architecture Billings Index (ABI) for March not only reached its second positive mark since the beginning of the pandemic one year ago (when it dropped to a historic low of 33.3 in March '20), but it also, according to the AIA, climbed to a score "not seen since pre-Great Recession" this month.

The design contract score continued the positive trend it began last month, hitting 55.7 in March. The new project inquiries score also improved from 61.2 in February to now 66.9.

The March report also registered all building sectors and regions posting positive scores for the first time in three years.

Meanwhile hiring in the architecture industry is continuing to rebound, but remains volatile, as seen in Archinect's industry-leading architecture job board.

More March ABI Highlights

Regional averages: Midwest (56....

Architecture Billings Index in February reaches first positive mark after a year of monthly declines

2021-03-24T13:47:00-04:00

The latest economic report from the American Institute of Architects is indicating a mild sense of optimism: the Architecture Billings Index (ABI) for the month February climbed back into positive territory for the first time since February 2020. At a score of 53.3, the new ABI marked a significant increase compared to 44.9 in January.

The design contract score also re-entered positive terrain since the beginning of the pandemic with a score of 51.6 compared to 48.8 in January. The new project inquiries score expanded from 56.8 in January to 61.2 in February, a 22-month high water mark.

Meanwhile hiring in the architecture industry is continuing to rebound, but remains volatile, as seen in Archinect's industry-leading architecture job board.

More February ABI Highlights

Regional averages: South (52.4); West (49.5); Midwest (49.3); Northeast (46.9)
Sector index breakdown: mixed practice (52.5); commercial/industrial (50.5); multi-family residential (48.3); institutional (47.8)
Projec...

Architecture Billings Index in January continues to contract

2021-02-24T13:32:00-05:00

The latest economic study from the American Institute of Architects indicates that fewer architecture firms reported declining billings due to slightly improved business conditions, however overall billings continued to contract.

The Architecture Billings Index (ABI) for the month of January slightly rose to 44.9 compared to the revised December score of 42.3. The report saw a modest increase in inquiries into new projects during January, with a score of 56.8 compared to 51.7 in December. The value of new design contracts mildly improved to a score of 48.8 (December: 47.0), reflecting an easing in the pace of decline.

Meanwhile hiring in the architecture industry is continuing to rebound, but remains volatile, as seen in Archinect's industry-leading architecture job board.

More January ABI Highlights

Regional averages: South (47.4); West (42.8); Midwest (42.2); Northeast (41.9)
Sector index breakdown: mixed practice (47.9); multi-family residential (44.4); commercial/industrial (44.3...

Architecture Billings Index in December continues to 'lose ground'

2021-01-20T13:34:00-05:00

The American Institute of Architects published the new economic report for the month of December this morning, indicating a considerable decline in demand for design services from U.S. architecture firms. The Architecture Billings Index dropped to a score of 42.6, well below November's 46.3 score.

The report shows the pace of growth of inquiries into new projects as flat from November to December with a score of 52.4. The value of new design contracts remained in negative terrain with a score of 48.5.

Meanwhile hiring in the architecture industry is continuing to rebound, but remains volatile, as seen in Archinect's industry-leading architecture job board.

More December ABI Highlights

Regional averages: South (46.8); Midwest (43.6); West (43.4); Northeast (38.8)
Sector index breakdown: mixed practice (48.0); commercial/industrial (47.2); multi-family residential (46.1); institutional (38.5)
Project inquiries index: 52.4
Design contracts index: 48.5

"Since the national economic recovery...

Architecture Billings Index in November contracts once again

2020-12-16T13:47:00-05:00

The latest economic report from the American Institute of Architects shows a continued decline of architecture firm billing activity. The Architecture Billings Index for the month of November fell below October's, now posting a score of 46.3.

The Institute also registered a slowing pace of inquiries into new projects, albeit remaining in positive terrain with a score of 52.0 (compared to the October score of 59.1). The value of new design contracts however fell back into the negative zone with a 48.6 score after briefly inching into growth territory in October for the first time since the beginning of the pandemic.

Meanwhile hiring in the architecture industry is continuing to rebound, but remains volatile, as seen in Archinect's industry-leading architecture job board.

More November ABI Highlights

Regional averages: Midwest (50.1); West (48.3); South (46.7); Northeast (38.7)
Sector index breakdown: multi-family residential (52.2); mixed practice (49.5); commercial/industrial (47.5)...

Architecture Billings Index in October remains stalled

2020-11-18T13:17:00-05:00

Architectural billings remained largely unchanged from the previous month during October, reports the American Institute of Architects in its latest Architecture Billings Index (ABI) this morning. The current pace of decline in firm billings was registered at 47.5 — only a mild improvement from the 47.0 score in September and significantly behind pre-pandemic growth numbers that abruptly ended in March.

The report signals a modest increase in new project inquiries, growing from 57.2 in September to 59.1 in October. The score for newly signed design contracts inched into positive terrain for the first time since the beginning of the pandemic at 51.7.

Meanwhile hiring in the architecture industry is continuing to rebound, but remains volatile, as seen in Archinect's industry-leading architecture job board.

More October ABI Highlights

Regional averages: West (50.4); Midwest (49.4); South (45.8); Northeast (44.9)
Sector index breakdown: multi-family residential (55.1); mixed practice (52...

September sees modest improvement in Architecture Billings Index relative to recent months

2020-10-21T17:37:00-04:00

Last month fewer architecture firms reported a decline in billings, up slightly from previous months, but still lagging behind pre-pandemic numbers. The AIA's Architecture Billings Index (ABI) report for the month of September shows a score of 47.0, indicating that a little over half of firms are continuing to see a decline in revenue, up from 40.0 in August. The reported number of inquiries, however, are promising, up to 57.2 compared to 51.6 in August.

Architectural employment is continuing to rebound, but remains volatile, as seen in Archinect's industry-leading architecture job board.

More September ABI Highlights

Regional averages: West 45.6 (41.7 in August); South 43.7 (41.6 in August); Midwest 45.6 (41.3 in August); Northeast 41.5 (33.9 in August)
Sector index breakdown: residential 54.0; commercial/industrial 43.3; institutional 40.5
Design contracts index: 46.0
Firms reported that they expect their revenue to decrease by an average of 1.9% from the third quarter to the fourt...

Architecture Billings Index in August: 'business conditions remained stalled'

2020-09-23T13:05:00-04:00

The American Institute of Architects (AIA) has published its Architecture Billings Index (ABI) report for the month of August, showing stalled business conditions for architecture firms and a further decline in demand for design services, represented by an unchanged score of 40.0 for the third consecutive month.

August ABI Highlights

Architecture Billings Index score for August: 40.0
Regional averages: Midwest (41.7); South (41.6); West (41.3); Northeast (33.9)
Sector index breakdown: multi-family residential (49.4); mixed practice (41.9); institutional (40.2); commercial/industrial (35.5)
Project inquiries index: 51.6
Design contracts index: 46.0

"Unfortunately, since the start of the COVID-19 pandemic, many architecture firms are finding fewer inquiries that convert to billable projects," said AIA Chief Economist, Kermit Baker, Hon. AIA, PhD. "While fewer firms reported declining billings in August than during the early months of the COVID-19 pandemic, the fact that the score has been ...

Lessons on Surviving, and Even Thriving Through a Recession

2020-09-15T14:54:00-04:00

Recessions are hard for everyone, but the architecture industry has a history of being especially impacted by downturns in the economy. This panel, one of Archinect's many upcoming virtual events, will share insights from architects who have successfully worked through previous recessions, or even started up during a recession.

From L-R: Gregg Pasquarelli, Carie Penabad, David Gensler, Patrick Macleamy

The panel will bring together seasoned industry experts: David Gensler, Former Co-CEO at Gensler; Carie Penabad, Principal at CURE & PENABAD; Patrick Macleamy, Former CEO at HOK; and Gregg Pasquarelli, Founding Principal at SHoP Architects. The panel will be moderated by Paul Petrunia, Archinect's Founder/Director.

The conversation will focus on ways firms have pivoted in response to changing economic landscapes, team restructuring, strategic hiring, and other approaches to not only make it through a challenging time, but to come out stronger during the recovery.

To reserve your spot...

July Architecture Billings Index stagnates into negative territory

2020-08-19T12:59:00-04:00

The American Institute of Architects (AIA) has published its Architecture Billings Index (ABI) report for the month of July, showing demand for architecture billings maintaining a similar level of economic contraction as the month of June amid a spike in COVID-19 cases and the re-imposition of lock down initiatives across many states.

According to a summary of the report's findings, July's ABI "failed to show any progress during July, and business conditions continued to be soft at firms" as "newly signed design contracts declined more critically" than overall demand, foreshadowing continued economic contraction within the architecture industry in the months ahead.

July ABI highlights

Architecture Billings Index score for July: 40.0
Project inquiries index: 49.1
Design contracts index: 41.7

Demand for design services declined for the fifth consecutive month in July, according to the report, though the decline was less severe than for the months of March and April. Interest in new proj...

Manhattan apartment glut reaches 13,000 units

2020-08-14T13:40:00-04:00

The number of vacant apartment buildings in Manhattan continues to grow as the effects of a recent construction boom and the COVID-19 crisis converge within the city's real estate market.

CNBC reports that the number of apartments for rent, or listing inventory "more than doubled over last year and set a record for the 14 years since data started being collected," highlighting the fact that the number of new leases signed over the last year has fallen by 23%.

Previously on Archinect. "Condo-boom hangover: More than a quarter of NYC's new units remain unsold." Photo: Maciek Lulko/Flickr

Jonathan Miller, CEO of Miller Samuel, the real estate appraisal firm that authored the study cited by the report, tells the CNBC, “The outbound migration is higher than the inbound migration right now."

While talk of excess supply in the city's real estate market has been on the rise in recent years, with most critics citing the region's overdevelopment of luxury high-rise apartments and condominiums...

Transportation construction takes a steep hit as project impacts of COVID-19 continue

2020-08-05T13:59:00-04:00

A new report from the American Road & Transportation Builders Association (ARTBA) highlights the growing scale of construction disruption unleashed by the COVID-19 pandemic.

The report states that projects totaling over $9.6 billion in expenditures have been either delayed on cancelled across the country and that at least $132.8 billion in spending from potential projects stemming from transportation-related ballot initiatives and other funding streams have also been disrupted by the economic crisis resulting from the pandemic.

The projects in question include road construction as well as public transportation initiatives like train, light rail, and airport expansions. Many of the delays follow drastic revenue losses across major urban centers as public transportation use fell off precipitously during the pandemic and has yet to recover. The disruptions are due to impact planned capital improvement projects in New York City, Los Angeles, San Francisco, Boston, and Chicago, among o...

Non-residential construction expected to decline through at least 2021

2020-07-22T19:50:00-04:00

The American Institute of Architects (AIA) has published its latest AIA Consensus Construction Forecast Panel, a metric that collects the perspectives of "leading economic forecasters" to help project potential near-term demand for construction services.

AIA's latest report signals that the broad contraction experienced by non-residential market sectors as a result of the COVID-19 pandemic will continue through 2020 and into 2021. According to the report, "As a result of the partially shutdown economy, businesses and organizations will continue to be hesitant to invest in modernized or new facilities." The report adds, "The trend ends an almost decade-long expansion in construction spending."

Previously on Archinect: Lukewarm Architecture Billings Index persists in June.

AIA estimates that the commercial building sector will be hardest hit by the slow down, with a projected decline in construction activity of nearly 12% expected this year. The slide will continue in 2021, when constr...

Lukewarm Architecture Billings Index persists in June

2020-07-22T13:14:00-04:00

The American Institute of Architects (AIA) has published its monthly Architecture Billings Index (ABI) report for the month of June, which registers slight growth in the demand for design services relative to the previous month after a season of steep declines due to the COVID-19-pandemic.

June ABI highlights

Architecture Billings Index score for June: 40.0
Project inquiries index: 49.3
Design contracts index: 44.0

An announcement from the AIA highlighting the latest report explains that demand for design services for architecture firms "began to stabilize in June, following their peak declines in April." The figures build on slight gains seen in the month of May and represent the second consecutive month of demand growth following April's historic lows.

For reference, May's ABI report posted an overall score of 32.0, while inquiries and contract executions registered scores of 38.0 and 33.1, respectively. Though still below the 50.0 mark that signals overall growth in demand, the r...

Divergence between housing and commercial markets continues as pandemic impact on construction and design deepens

2020-07-16T14:45:00-04:00

A pair of recently published economic tracking studies for the construction industry developed by Quarterly Market Forecast (QMF) highlight the increasingly split nature of construction proposal activity within the United States following the COVID-19 pandemic.

Commercial projects are struggling, with some exceptions

First, the bad news: Commercial projects are facing dire straights.

A recent net plus/minus index (NPMI) conducted by QMF measuring the difference between firms that saw a drop in proposal activity and those that saw an increase shows that commercial developers have seen a 45% decline in proposal activity during the second quarter of 2020, slightly up from a minus 51% showing during the first quarter of the year.

Commercial Users Market Proposal Activity – 2007 to 2020 (NPMI). Graph courtesy of QMF.

Here, warehouse and fulfillment center developers saw an increase in proposal activity, predictably due to the drastic increase in online ordering that has taken hold in re...

Someone just created a tool to browse all the architecture firms that received PPP loans

2020-07-07T16:46:00-04:00

A recently published interface pulls together data on what architecture firms received approval for Paycheck Protection Program (PPP) funding from the United States Small Business Administration (SBA). The interface collects publicly available information published by SBA that has been sorted according to the North American Industry Classification System code for the architecture industry, based on filings under NAICS CODE: 541310 for “Architectural Services.”

The interface, powered by Google’s Data Studio, shows 3,504 architecture-related companies that were approved to receive PPP funding from the SBA, resulting in the potential retention of over 100,000 employees.

The PPP program was included in the $2.2 trillion CARES Act economic aid package, passed in late March 2020, which was created to stem economic losses sustained by the COVID-19 pandemic, allowing businesses to keep employees during this time of hardship. According to SBA, over $520 billion in loans has been dispersed o...

ASID projects future growth for interior design services

2020-07-06T15:08:00-04:00

The American Society of Interior Designers (ASID) has published its latest monthly Interior Design Billings Index (IDBI) report, finding that the demand for interior design services is poised to grow considerably over coming months as businesses and institutions undertake additional interior retrofit projects as they move toward re-opening.

The report, published via the ASID website, finds that "while business conditions are still in contraction territory, the seeds of a recovery for interior design firms may be evident."

Previously on Archinect: "Architecture Billings Index: meager demand for design services continues."

The survey, like the American Institute of Architect's Architecture Billings Index (ABI), gauges new project inquiries, contract executions, and overall demand, and is measured using a similar scoring system whereby a score above 50 indicates a growth in demand. The survey for the month of May has a score of 43.5, up from 18.9 in April. The figure, according to ASID...

Construction firms top list of PPP loan recipients

2020-07-06T13:50:00-04:00

Industries getting the largest share of net PPP dollars were health and social assistance, professional, scientific and technical services, construction and manufacturing.

CNBC breaks down newly published data from the federal government highlighting the distribution of Paycheck Protection Program loans extended to American businesses in the aftermath of the COVID-19 pandemic.

Previously on Archinect:"Architecture Firm Owners Share Their PPP Woes"

According to CNBC, the construction industry took in over $60 billion in PPP loans during the initial funding rounds.

Applications for additional PPP funds are open through August 8, 2020.

Architecture Billings Index: meager demand for design services continues

2020-06-24T14:12:00-04:00

The American Institute of Architects (AIA) has published the latest Architecture Billings Index (ABI) report capturing tepid demand for design services during the month of May as the economic fall out from the COVID-19 crisis continues.

The report indicates that the demand for architectural services has so far seen "few signs of rebounding following a record drop in billings the month prior." For the figures below, any score below 50 signals a contraction in demand while a score above 50 indicates a growth in demand. This month's report is the third consecutive ABI survey showing negative scores across all ABI indexes.

Previously on Archinect: "Construction activity is approaching pre-COVID levels" Photo by Juhasz Imre from Pexels.

May ABI highlights

Architecture Billings Index score for May: 32.0
Project inquiries index: 38.0
Design contracts index: 33.1

The report shows slight gains from the month of April with regards to project inquiries and design contract executions, though all ...

Housing construction is increasing once again

2020-06-23T14:17:00-04:00

A recent monthly report from the United States Census Bureau indicates that residential construction is beginning to claw back toward typical levels following steep drops in construction and permitting activities during the first months of the COVID-19 pandemic.

The report states that although building activity is still falling below levels observed in January and February of this year, new building permits, and new housing starts are both up relative to the months of March and April. Housing completions, however, fell between April and May, coinciding with the lowest levels of construction activity across the country.

Previously on Archinect: "Is construction activity starting to rebound?" Image courtesy of PSMJ Resources.

According to the report, 1,220,000 single-family housing permits were issued in May, roughly 14.4% more than the revised rates reported for the month of April. This total, however, is still 8.8% lower than the number of new permits issued in May 2019. For the mon...

Is construction activity starting to rebound?

2020-06-16T12:02:00-04:00

A second supplemental Quarterly Market Forecast (QMF) from PSMJ Resources conducted to gauge the impact of the COVID-19 pandemic on the Architecture Engineering and Construction industry offers somewhat positive news for the month of May.

After posting a steep, 27% decline in proposal activity for the month of April, the survey shows a relatively smaller decrease in May of -9%.

The survey shows that the degree of contraction within many sectors of the construction field has lessened in recent weeks, indicating that, at least for now, the month of April represents the lowest point in the most recent economic cycle.

Of particular signifiance, according to the authors of the survey, is the level of activity taking place in housing construction, which has shown a significant bounce back from the April lows.

Previously on Archinect: "Architecture Billings Index continues historic drop in April." Image courtesy of Pixabay.

The authors of the report explain: "The Housing market improved m...

It's official: US economy entered into a recession in February 2020

2020-06-08T17:09:00-04:00

A new report from the National Bureau of Economic Research, the private non-profit group that "maintains a chronology of the peaks and troughs of U.S. business cycles," indicates that the United States entered a recession in February 2020.

The latest report finds that quarterly economic activity peaked in the fourth quarter of 2019 while overall economic activity peaked in February on the eve of the global economic shut down prompted by the COVID-19 pandemic.

Previously on Archinect: "US economy is now in a recession as economic activity, including construction, grinds to a halt." The United States economy is expected to enter a near-term recession. Image courtesy of Linnaea Mallette.

Describing the historic nature of the economic collapse that subsequently took place, the report states, "The peak marks the end of the expansion that began in June 2009 and the beginning of a recession. The expansion lasted 128 months, the longest in the history of U.S. business cycles dating back to...

AEC survey shows uneven economic decline within construction industry

2020-05-27T18:34:00-04:00

Piggybacking on recent data specific to the architecture industry, a new Quarterly Market Forecast from business consultant group PSMJ Resources indicates that current and near-term construction activity has steeply fallen off in the wake of the COVID-19 pandemic.

Like recent findings published by the American Institute of Architects (AIA) Architecture Billings Index (ABI) report for April, PSMJ finds that demand for construction activity has fallen in nearly all the industry sectors it measures, with commercial development impacted the most.

Also like the ABI, PSMJ's survey has registered historically low economic conditions. The survey, according to PSMJ, consists of "193 responses from the consistent group of hundreds of A/E/C firm leaders who regularly complete the quarterly survey."

Previously on Archinect: "Architecture Billings Index continues historic drop in April." Image courtesy of Pixabay.

The survey indicates a glimmer of hope, however, reporting that "Public-sector ma...

Architecture Billings Index continues historic drop in April

2020-05-20T12:35:00-04:00

The Architecture Billings Index (ABI) report published for the month of April by the American Institute of Architects (AIA) shows that a historic contraction within the architecture industry has intensified as the COVID-19 crisis continues in the United States.

April ABI highlights

Architecture Billings Index score for April: 29.5
Project inquiries index: 28.4
Design contracts index: 27.6

According to the report, "demand for design services in April saw its steepest decline on record," resulting in an ABI score of 29.5. Any score falling below 50 indicates a decrease in billings; This is the second month in a row to show a deep contraction in the demand for design services. March's score, which captured only the first weeks of the COVID-19 crisis, fell to 33.3 following a 53.4 score in February on the eve of the crisis.

Project inquiries fared slightly better in April than in March, while contract execution dropped further.

Summarizing the findings of the survey, AIA Chief Economist K...

Latest emergency economic aid package clears Congress

2020-04-23T20:25:00-04:00

On Thursday afternoon, the United States House of Representatives passed the latest COVID-19-related emergency economic stimulus plan. The plan was approved by the United States Senate on Wednesday and is due to be quickly signed into law by President Donald Trump.

The initiative will bring $320 billion dollars in funding to the beleaguered Paycheck Protection Program (PPP) and $10 billion to the emergency Economic Injury Disaster Loan Program (EIDL). Both programs are targeted towaed helping small- to medium-sized businesses keep their employees on payroll. PPP offers forgivable low-interest loans that can be used to cover payroll costs and overhead for businesses that operate with fewer than 500 employees. The EIDL brings similar funding to companies located in specific areas severely impacted by the crisis.

Previously on Archinect: “Architecture Firm Owners Share Their PPP Woes.” The Marriner S. Eccles Federal Reserve Board Building.

The American Institute of Architects (AIA) pr...

Paycheck Protection Program could see $321 billion infusion

2020-04-22T12:26:00-04:00

A fourth emergency economic aid package created in responses to the COVID-19 crisis has passed the United States Senate and is heading to the House of Representatives for a final vote. President Donald Trump has indicated that he will sign the bill once it reaches his desk.

The $484 billion deal passed by the Senate Tuesday afternoon and includes a $321 billion infusion into the embattled small-business loan programs that have rolled out over the last few weeks.

The federal government’s Paycheck Protection Program (PPP) opened to applications from businesses with 500 or fewer employees two weeks ago and quickly ran out of funds as the crushing economic losses gripping the country intensified. As Archinect members have explained, many of the small businesses that have applied for the funding have yet to hear back from the Small Business Administration, the department that is leading this aspect of the government’s economic support. Even fewer have actually received any of the loan ...

Cratering economy registers historic drop in Architecture Billings Index

2020-04-22T11:54:00-04:00

The latest Architecture Billings Index (ABI) report published by the American Institute of Architects (AIA) shows that business for the architecture industry has taken a precipitous drop in the weeks since the COVID-19 crisis began to take hold in the United States.

While February’s ABI numbers showed a positive trajectory and a preliminary March report hinted at the growing severity of the nation’s economic collapse, March’s official tally, which still only really captures the first few weeks of the crisis, shows a drastic contraction in the demand for architectural services.

The index is scored between 0 and 100, with a score of 50 registering no change in demand for architectural services; Anything above 50 indicates a growth in billings while and anything below shows a drop in demand for design services.

Previously on Archinect: “Architecture Firm Owners Share Their PPP Woes.“ The Marriner S. Eccles Federal Reserve Board Building

March ABI highlights

Architecture Billings Ind...

Clean energy jobs evaporate amid COVID-19

2020-04-20T12:53:00-04:00

More than 106,000 clean energy jobs were eliminated in the month of March due to the novel coronavirus outbreak, according to an analysis of unemployment data by BW Research Partnership and E2. The layoffs reflect a 3% drop in overall industry employment.

According to Smart Cities Dive, the layoffs come as hundreds of clean energy-related manufacturing plants have closed, including those producing building materials and solar/wind power infrastructure. The largest drops have been seen Hawaii (6.4%), Pennsylvania (6.2%) and North Carolina (5.9%), while California lost the most clean energy jobs overall (19,949), Smart Cities Dive reports. It is projected that the industry could lose up to 500,000 which would be roughly 15 percent of its workforce.

Los Angeles County is planning a COVID-19 small business support program

2020-04-17T14:06:00-04:00

The Los Angeles County Board of Supervisors has agreed to launch a new small business financial support program to help L.A.’s most vulnerable businesses survive the COVID-19 crisis.

The fund will include “bridge funding for small businesses likely to receive federal disaster assistance,” according to the text of the initiative, which was crafted by Supervisor Mark Ridley-Thomas. In addition, it will bring “low-cost working capital loans to maintain small businesses who may not qualify for federal disaster assistance,” as well as “working capital loans to nonprofit organizations and small businesses who are providing essential services, or transitioning from an existing model to provide essential services, that directly address the health or economic impacts of COVID-19.”

Further, the effort would bring “cash grants to microentrepreneurs and other highly vulnerable populations who will not qualify for federal disaster relief. The programmatic model should incorporate community dev...