February 4th , 2021, Oakland, Calif. – When Patricia Neal Vuagniaux, owner of Swork Coffee, received word that she had won $25,000 from the FOUND/LA Small Business Recovery Fund, she could feel the stars aligning. “It’s like the universe said, ‘Trish, you’re not done yet.”

TMC Community Capital launched this $1 million grant program to help minority-owned small businesses in Los Angeles County impacted by COVID-19. Fully funded by FOUND/LA, an initiative of the Wurwand Foundation, TMC Community Capital is able to offer grants up to $25,000 to businesses that have been adversely impacted by the pandemic. TMC Community Capital is a non-profit microlender focused on providing capital to underserved entrepreneurs in California. Since the pandemic, they quickly pivoted to offer relief programs, in addition to products to help small businesses grow. The FOUND/LA Small Business Recovery Fund is the third grant program TMC Community Capital has administered since March 2020.

From local restaurants and retail storefronts to neighborhood salons and coffee shops, the pandemic has taken an economic and emotional toll on far too many small businesses, many of which been forced to close their doors. Los Angeles in particular has suffered one of the highest small business closure rates across the country (Yelp). In response to the devastating impact of COVID-19 on the Los Angeles small business community, TMC Community Capital has partnered with Pacific Community Ventures to process grant applications and get the funding out quickly. The first round of funding was distributed before Christmas. Grant recipients for the second round were selected on January 21st. The first two rounds will distribute a total of $500,000.

Minority-owned small businesses across the country face the greatest challenges, and long-standing issues like inequitable access to access to capital have only been amplified by the pandemic. By the end of April, nearly half (41%) of all Black small businesses in the US had already shuttered, Latino-owned businesses fell by 32% and Asian-owned businesses dropped by 26% (Yelp). Federal relief packages like the PPP loan often failed to reach those who needed it most, with only 2% of funds going to minority-owned businesses (Forbes). The Recovery Fund was launched to help mitigate this harm and provide relief to those businesses in greatest need. TMC Community Capital has partnered with Small Business Majority to help spread the word to ensure a diverse pool of applicants.

Rice and Noodle, a Thai and Vietnamese restaurant and one of the grant recipients, was at risk of permanent closure because of the pandemic. Lunch sales had fallen by over 60% and owner Kwan Chotikulthanachai was forced to lay off all her employees. Unable to pay rent in full since May, ineligible for the Paycheck Protection Program and Economic Injury Disaster Loan, and with two children under ten at home, the $8,525 grant came just in time.

She cried when she heard the news. “I was so happy,” Chotikulthanachai said tearfully in a phone interview Wednesday. “It’s like I won the lottery.” Her 8-year-old son, Hugo, joyously jumped and screamed. She called her mother in Thailand — who cried, too. “I’m working so hard,” she said. “This time has been incredibly difficult, but I cannot give up. I don’t want to close my restaurant.”  

Kenya’s Hair Creations was another small business winner of the FOUND/LA Recovery Fund. Her salon had been forced to close for much of the last year due to California’s state-wide Stay at Home Orders. She spent the last few months in economic freefall, applying for loans and grants with no luck. When she received word that she had won the grant, she was shocked.

“When I first opened the email, I was flabbergasted. I didn’t believe it was true. It’s a reminder that there is hope at the end of the tunnel. I’m so grateful to have been chosen.” She received her funds just a few days before Christmas, too. “Now, hopefully, my business will be able to stay afloat. It came at just the right time.”

In our grant recipient pool for rounds 1 and 2, a total of 20 out of 22 grant awards were given to minority business owners. In addition, 51% of grant applicants identified as women.