Where is the time going? It’s almost spring! These first few months of 2023 have been busy ones for the Community Development (CD) Department. We’ve added Community Advisory Council (CAC) members, launched registration for Policy Summit 2023, released the national 2023 Report on Employer Firms: Findings from the 2022 Small Business Credit Survey, and refreshed the department’s strategic plan.
Economic inclusion is the foundation of the CD Department’s work. In 2023, we will strive to be recognized as a valuable resource, partner, and trusted leader that improves economic well-being in our communities, our region, and our country. We remain committed to our mission to promote the economic resilience and mobility of low- and moderate-income (LMI) and underserved individuals and communities. And we are excited to share our refined key strategies:
Support a thriving economy – Lead in the study and practice in three priority areas: affordable and quality housing and neighborhoods, economic and workforce development, and small business and access to capital.
Elevate voices – Broaden the voices that inform policymaking and program development.
Build awareness –Enhance communications with key audiences to increase the awareness and use of our work.
Strengthen culture – Ensure every employee can thrive and do their best every day.
We are also thrilled to welcome six new CAC memberswho, in addition to being experts and leaders in their fields, represent the geographic, demographic, and sector diversity of our District. They are involved in community and economic development, including local government, a workforce board, academia, and other organizations focused on CD investment. CAC members are thought leaders with significant experience and can represent concerns impacting LMI individuals and communities.
With a new strategic plan and CAC members, the CD department reinforces its commitment to provide critical research and outreach to best support economic inclusion. Below is a sample of that work from our staff and our partners across the Bank and Federal Reserve System.
Last (but not least!), registration forPolicy Summit 2023is now open! We are partnering with Reserve Banks across the country to hold the 16th biennial Policy Summit from June 21 to 23, 2023, in Cleveland, Ohio. The Summit will bring together national and local experts to discuss a range of timely topics important to lower-income individuals. I hope to you see there.
New Findings from the Small Business Credit Survey
Small business revenue, employment, and profitability each improved from 2021, but expectations worsened year-over-year. With the end of pandemic-related funding programs, the application rate for traditional financing rebounded to prepandemic levels. Read the latest.
Thank you to our Fourth District partners who have helped promote the Small Business Credit Survey in their own communities, making reports like these possible:
Interested in becoming a Small Business Credit Survey partner?Sign up here.
Cleveland Fed CAC welcomes six new members
The CAC is made up of Fourth District experts and leaders who represent issues of concern to underserved and lower-income individuals and communities. We are excited to welcome six new members to the CAC in 2023:
Rob Cherry, Chief Executive Officer | Partner4Work | Pittsburgh
Chris Groner, Vice President of Capital Finance and Lending | Erie County Redevelopment Authority | Erie
Ken Oehlers, Executive Director | Habitat for Humanity of Southeast Ohio | Millfield
Amy Riegel, Executive Director | Coalition on Homelessness and Housing in Ohio| Columbus
Natoya Walker Minor, Deputy General Manager, Administration and External Affairs | Greater Cleveland Regional Transit Authority | Cleveland
Lisa Kay Schweyer, Program Manager | Carnegie Mellon University’s Traffic21 Institute | Pittsburgh
Register now! Policy Summit 2023
Registration is now open for Policy Summit 2023: Communities Thriving in a Changing Economy!
Join us in Cleveland or virtually, June 21–23, for outside-the-beltway conversations about policies and programs affecting lower-income communities across the United States.
Access research related to workforce and economic development, small businesses, economic inclusion, and more.
Learn how to design and implement strategies for impact.
Get updates on social by following #PolicySummit2023.
Housing and Neighborhoods
Small mortgages, big barriers
With traditional lenders often reluctant to offer mortgages for less than $100,000 because of low profit margins, a Cleveland nonprofit has stepped up to assist homebuyers wanting to borrow such amounts. Explore small-dollar mortgages.
Recovering from historic flooding in Eastern Kentucky
Recovering from an emergency event is accomplished in phases—and with many hands. Seeing the many pressing needs of the area, one eastern Kentucky nonprofit realized that more staffing was part of the solution and took action.Read our newest blog.
Home-purchase loans’ growth stronger for Black borrowers than for non-Black borrowers
Analysis of mortgage data in seven counties in Ohio, Pennsylvania, and Kentucky finds growth in home-purchase originations was much stronger for Black borrowers than for non-Black borrowers between 2018 and 2021, when an “exceptional combination of events” happened for the housing market. Read the numbers.
Tackling rent index differences
Rent is the largest component of the consumer price index, but prominent rent growth indices often give strikingly different measures of rent inflation. Using rent microdata, researchers explain the differences.
Gathering insights from the often overlooked communities
The Community Development Departments in the Federal Reserve System are dedicated to finding solutions to economic challenges that low- and moderate-income communities face. Check out this blog that shares examples of the Feds work in LMI communities.
Small Business
Puzzling outcomes for Black entrepreneurs
An average Black household engaged in entrepreneurial activity has a higher rate of return on its business than a non-Black household. This finding raises a question: Why are entrepreneurship rates much lower among Black and Hispanic households than among white households?
Creating greater access to credit for small business owners of color
Mission-driven financial institutions can improve credit access for underserved small businesses. Find out more in this Fed Communities piece.
Interested in more from Fed Communities? Fed Communities magnifies our work in low- and moderate-income communities and other underserved areas across the United States.
Workforce
Beige Book highlights community conditions
The Federal Reserve’s Beige Book now includes sections specifically devoted to community conditions. The most recent report includes the following Fourth District workforce insight:
Workforce development contacts indicated that the number of individuals seeking their services remained below prepandemic levels.
Lower-wage workers have greater options for employment and have become more selective in their job choices, prioritizing flexible work schedules in addition to pay.
To learn more about this new section in the Beige Book read our recent blog.
The aftermath of the pandemic recession for workers
A sharp recovery in labor market conditions after the 2020 recession led workers displaced during the pandemic to experience better earnings and employment outcomes than workers displaced during previous recessions. Read more.
Quality jobs benefit both employers and employees
What characteristics define a “good job”? Does your current position meet the criteria? Advantages such as an available retirement plan, the option to join a union, and a safe, healthy, and accessible workplace are also characteristics of “good jobs.” Learn how workers find those jobs.
For some, pay raises don’t lead to increased financial stability
A higher-paying job can disqualify someone from receiving rental or food assistance benefits, and the increase in pay isn’t always enough to fill the gap. See how the “benefits cliff” is explored in this multimedia story.
