As part of this project, the Partners will share the stories of people living in poverty across geographically, culturally, and racially distinct rural communities to highlight shared experiences and encourage their unification to reshape narratives and drive policy change. 

Misconceptions and damaging stereotypes of people in poverty have fueled divisive conversations about race and class, diluted the power of those living in poverty and detracted from the underlying systemic causes. Together, we will ask residents in diverse areas of persistent poverty – from the Mississippi Delta, Appalachia, Native American communities, the Deep South, the Rio Grande Valley and regions in the Rural West – to document the stories of their experiences, share them with other regions, and analyze the effect of this storytelling effort on changing attitudes to poverty.

By sharing our diverse stories of resiliency and innovation, we will build a narrative of hope and respect for the places we call home and build political power for communities that have been historically left out in our political discourse. 

Read the full press release here.
Watch a short video from leaders of the project here.

The Grand Challenge is funded by eight philanthropic organizations, including the Bill & Melinda Gates Foundation, Robert Wood Johnson Foundation, the James Irvine Foundation, the W.K. Kellogg Foundation, the Omidyar Foundation, the Raikes Foundation, the Winthrop Rockefeller Foundation and the Schulz Family Foundation. Thank you for your support!

The post Our Story: Changing the Narrative of Persistently Poor Rural Places appeared first on Partners for Rural Transformation.

Partners for Rural Transformation (PRT), organizations working collaboratively across geographies and cultures to lift up rural communities of persistent poverty, is committed to breaking the cycle of racism and white supremacy that has plagued our history and shaped our nation. We recognize the deep impact that the last few months, and especially the last two weeks, has had on our staff, clients and communities. From the devastating and disproportionate effect of COVID-19 on Black, Native and Latinx communities, to the murder of George Floyd, Ahmaud Arbery, Breonna Taylor and the thousands of missing or murdered Indigenous women, and the brutality from the police and military targeting anti-racist protestors and people of color.

The current stress and conflict is nothing new for the millions of people of color, particularly Black people, in our communities, urban and rural alike. The racial and economic injustices in the U.S. are intentional and a direct result of slavery – the primary building block for the politics, policies and power dynamics that support economic disparity, persistent poverty and inequity in the U.S. These policies and systems, and the subsequent results, are rooted in our country’s history of white colonization, racism and white supremacy. Our history, comprised of systematic and legalized stealing of land, slavery, lynching, forced language and culture assimilation and segregation, has led to current laws and policies legitimizing political gerrymandering, redlining, limited voting rights, militarization under the guise of border protection and the criminalization of people of color.

America’s practice of teaching false history and covering up systemic issues, instead of tackling them head-on, has prevented us from becoming a nation of true equality and freedom. As CDFIs, we see first-hand how economic and housing policies steeped in white supremacy deepen the nation’s wealth gap. For decades, economic policy and disinvestment in communities of color have facilitated the acquisition of wealth and power among a select few. Today, the consequences of this history manifest in high unemployment, a lack of access to banking services and a scarcity of quality affordable housing and safe drinking water in communities of color and low-income communities across the country. COVID-19 has only brought this into starker relief – with Black-owned businesses waiting weeks and weeks to hear back about Paycheck Protection Program (PPP) loans and stimulus funding deliberately leaving out many immigrants and those with incomes too low to file taxes.

Partners for Rural Transformation is committed to telling the real story of our nation’s history – it is no accident that the majority of people living in persistent poverty counties are people of color; Our marred history ensured it. In addition, if we do not take bold, wide-reaching action now it will only get worse. Together, in solidarity with our Black brothers and sisters, we ask that our country, community members and institutions use this important period in our history to get real about where we’ve come from, interrogate how that has shaped where we are today and to fight like hell to create a more just future.

Guided by a vision of an America where persistent poverty no longer exists, the Partners for Rural Transformation call upon our nation to eliminate structural exclusion by place and race and historical disinvestments in persistent poverty areas. We call upon philanthropic, federal and private investment to collectively commit to increase investment strategies in persistent poverty regions, and ensure that such investments are made to regional and local institutions and organizations that primarily serve these places. Only then can we build the community assets and wealth that is desperately needed to bring about meaningful and justice change.

The post Our Commitment to Justice appeared first on Partners for Rural Transformation.

For residents of Raymondville, Texas (population: 11,284), Wing Champs is more than a place to go for delicious wings — it’s a gathering place for the community and as one of the largest restaurants in town, an important source of employment. Nearly 50% of U.S. workers are employed by small businesses. Due to the COVID-19 pandemic, it is critical for businesses like Wing Champs and their communities to receive the support they need to withstand the crisis. Partners for Rural Transformation is working together to ensure small businesses that bring employment and vibrancy to rural communities get the loans and capital they need now. 

As part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, Congress approved billions of dollars in federal funding for the Paycheck Protection Program (PPP), an initiative intended to help banks make guaranteed loans to small businesses to cover payroll expenses amidst hardships related to COVID-19. However, structural barriers within the legislation put small businesses, particularly those in areas of persistent poverty and those owned by people of color, at a distinct disadvantage when seeking PPP funding. Banking options are more limited in these areas as well.

Under the CARES Act, businesses with 500 employees or fewer are categorized as “small businesses” – meaning businesses like Wing Champs, a Latino-owned restaurant with 32 employees, are competing for funding with large companies across the country. With strong ties to financial institutions, these larger businesses had banking relationships in place to secure PPP funding fast. For the smallest businesses, particularly those in areas of persistent poverty and those owned by people of color, the same treatment wasn’t afforded to the owners. Many persistent poverty counties lack banking options and, when a bank is present, the PPP gives preference to existing and larger customers. Very small businesses also face barriers in securing the time and assistance needed from banks to understand the program and gather all of the documentation required to apply for PPP funding. Simply put, a significant portion of entrepreneurs of color do not have the existing one-on-one relationships or access needed to receive loans from mainstream banks and other existing Small Business Administration (SBA) lenders. 

In the first PPP round, guarantee funds ran out before small businesses could get in line. The CARES Act gives large businesses a leg up by allowing franchises in the hospitality industry with less than 500 employees per physical location to use the individual locations to apply for up to $10 million in PPP funding. This left Wing Champs and other small businesses around the country waiting, waiting to hear back from their bank.

Communities Unlimited saw too many of its clients waiting for weeks to hear back about their PPP loan application, only to be informed the funding had run out. To prepare for the second funding round, Communities Unlimited joined forces with Rural Community Assistance Corporation (RCAC) and Hope Enterprise Corporation / Hope Credit Union (HOPE) to cut through the red tape and get critical PPP funding to small businesses in persistent poverty counties as soon as possible.

As Community Development Financial Institutions (CDFIs) authorized by the SBA to make PPP loans, RCAC and HOPE quickly raised philanthropic capital to actively support small businesses through the program. With on-the-ground connections to small business owners of color throughout the southern United States, Communities Unlimited’s entrepreneurship team identified qualifying businesses to refer to RCAC and HOPE and helped owners prepare the documents needed to apply for the loans. Thanks to this partnership, Communities Unlimited’s clients received approval on their loans within two to three days. The quick process helped these small businesses continue to pay their employees and keep the lights on. In fact, before Wing Champs even heard back from the initial lender they contacted during the first round of funding, RCAC got the business approved for a $62,734 PPP loan.

To date, Communities Unlimited has secured $408,725 in PPP funding through HOPE and RCAC for 25 clients, with four still in the pipeline and more to come. The partnership between these organizations is just one example of how the Partners are coming together during the pandemic to support one another and their communities. To learn more, check out the Partners’ case study “Response to COVID-19 Pandemic” or drop us a line at info@pfrt.org.

The post Securing PPP Loans Quickly to Protect Small Businesses in Rural Communities appeared first on Partners for Rural Transformation.