Chicago Chambers Respond to Proposed Funding Cuts

Posted on October 21, 2010 in Business, Community, LPCC, Legislative

FOR IMMEDIATE RELEASE

Contact:
Kimberly Bares – Rogers Park Business Alliance
(773) 508-5885; kbares@rogers-park.com
Christie Hahn –Business Partners, The Chamber for Uptown
(773) 878-1184; Christie@uptownbusinesspartners.com
Padraic Swanton - Lincoln Park Chamber of Commerce
(773) 880-5200; pswanton@lincolnparkchamber.com

Proposed 2011 Chicago Budget Eliminates Funding to Small Business Support and Economic Development Agencies
Chicago’s primary small business support program slashed; job creation and
citywide economic development jeopardized

CHICAGO (October 21, 2010) – As Chicago and the nation recovers from Recession support for local business owners is more important than ever.  However, the City of Chicago’s proposed 2011 budget eliminates $3.4 million in funding -- the entire allocation -- to neighborhood chambers of commerce and economic development corporations, known by the City as “delegate agencies.”

Local chambers of commerce are the City’s primary means of supporting the small, neighborhood businesses and industries that provide the majority of the city’s jobs, economic benefit, and neighborhood character.  These 112 groups are called “delegate agencies” because the city delegates to them its support programs for small businesses and provide critical services while directly assisting tens of thousands of small businesses throughout Chicago.  

“Local chambers of commerce are an invaluable commodity to Chicago,” says Jerry Roper, President and CEO of the Chicagoland Chamber of Commerce. “Neighborhoods rely on the support of their local chamber for programs that attract and retain new business and ensure a healthy community.”

Funding for delegate agencies that specifically support manufacturing has been shifted out of the city’s main budget and will be taken instead from the coffers of Tax Increment Financing (TIF) in neighborhoods that have TIFs. Neighborhoods without TIFs, and neighborhoods that are not based primarily on industry -- most Chicago neighborhoods -- will be without services to small businesses.

“The one place that I see the City’s rhetoric of caring for small businesses made real is through my local chamber of commerce,” said Brian Koester owner of Bark Bark Club Pet Services.  “In a word, the Edgewater Chamber of Commerce has become essential to the life of my business.”

Many of the critical services that support small businesses, and provide for vibrant neighborhoods, come from delegate agencies.  Some of the services provided by delegate agencies include:
•    Job creation and retention, through business start-up, maintenance, and growth programs
•    Assistance to entrepreneurs for business plan writing, finance, marketing, navigating the complex city permit and license processes, and a myriad of other issues through one-on-one interaction.
•    New business attraction through  tracking and promoting available commercial space
•    Business networking and education programs to help neighborhood businesses grow and succeed
•    Training programs for businesses and employees
•    Neighborhood marketing initiatives such as street festivals, dinner crawls, art fairs, and more. These events support the business districts through marketing and increased foot traffic and help Chicago maintain its reputation as one of the most livable and diverse cities in America.
•    Advocacy for business friendly policies at the city, state and federal level.

“I was very surprised and upset to hear about this cut in our budget.  As the recession continues, it is vital that we continue to provide support services for our local small businesses,” said 47th Ward Alderman Gene Schulter.  “We need to work together with these organizations to ensure that their funding is continued.  Our work with our delegate agencies supports the local economy in our neighborhoods and creates jobs for Chicagoans.”

Launched by Mayor Jane Byrne and expanded considerably by Mayor Harold Washington in an effort to build prosperity throughout the city by supporting entrepreneurship at the neighborhood level, the benefits of the delegate agency program are supported with data obtained through many channels.  These benefits now include:

Job creation and retention
Chicago’s delegate agencies directly impact (create or retain) an estimated 283,080 jobs annually and indirectly impact hundreds of thousands more.

Small business start up and growth
Chicago’s delegate agencies are the only frontline organizations providing direct services to an estimated 35,000 businesses, which in turn do business with countless others, multiplying the number of businesses served exponentially.

High return on the city’s investment
Delegate agencies allow the city to leverage a minute fraction of the overall city budget into millions of dollars of economic development.

Neighborhood Vitality
Delegate agencies are the heart of Chicago’s ongoing economic growth and prosperity.  They are responsible for business retention, expansion, and attractions which leads to jobs, support a healthy housing climate and ultimately build sustainability in our neighborhoods.

The Small Business Administration estimates that small businesses generate 64% of new net jobs, underscoring the need to support Chicago’s small business and entrepreneur community.  In addition to job creation, neighborhood businesses also reinvest in their local communities.  “In 2004, the Andersonville Study of Retail Economics showed that money invested or spent at local businesses generates 70% more economic benefit to the local economy than money invested otherwise,” said Ellen Shepard, Executive Director of the Andersonville Development Corporation.  “The study also showed that local businesses generate more sales tax revenue per square foot occupied than non-local businesses.”

Chicago’s delegate agencies, local chambers, Aldermen and thousands of small businesses throughout the City are seeking reinstatement of the $3.4 million to maintain the delegate agency program and continue the important service it provides to their communities. 

Delegate agencies, with the support of many Aldermen, small business owners, and other strategic partners, will attend en masse the October 25th budget committee hearing for the Department of Community Development, in a coordinated effort to restore funding to the business delegate agency program.

# # #