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metro.

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We’re helping
local businesses
as we build.
Metro’s Pilot Business Interruption
Fund and Crenshaw/LAX Pilot
Business Solution Center Report
spring 2019
Metro has been busy constructing the future
of mobility for LA County. We have continued
to ensure that LA County’s small businesses
continue to thrive as we build the future of
transportation for Los Angeles.
Although many of our “mom and pop” businesses
located along transit corridors have been challenged by
construction, Metro recognizes the opportunities that
are created for small businesses when transit rail projects
are completed and communities are connected.

Metro’s Pilot Business Interruption Fund (BIF) and


Crenshaw/LAX Pilot Business Solution Center (BSC)
continue to support small businesses sustain throughout
construction. Both small business programs have been
supporting small businesses impacted by Metro’s
construction since the programs’ inception in 2014. This
report provides an update on the accomplishments of
these two first-ever pilot programs over the past four years.

“I would like to thank Metro’s Business


“The Business Interruption Fund and the Crenshaw/LAX Pilot Business
Solution Center and the Business
Solution Center have been instrumental in sustaining small, family-owned
Interruption Fund for all the support
and independent neighborhood businesses during construction. Metro
provided during the construction of
is committed to protecting the future of these small businesses and the
the Metro line. We truly appreciate the
surrounding communities they serve as we build a world-class transportation
assistance. On behalf of our business,
system in LA County.”
I thank you.”
– Business owner Mayra Hernandez Phillip A. Washington, Chief Executive Officer
of Shop & Save Furniture has received Los Angeles County Metropolitan Transportation Authority
support from the BIF and BSC during
the construction of Metro’s Crenshaw/
LAX Transit Project.
Metro continues to commit an unprecedented level of

670
resources for the pilot Business Interruption Fund and more than

Crenshaw/LAX Pilot Business Solution Center. Small


businesses are vital to the economic sustainability of small businesses have benefitted from the resources
our communities, and ensuring they have support that metro has dedicated to these two programs.
through these two programs is Metro’s priority.

october 2014 april 2015 december 2016 march 2017 june 2018 february 2019
 etro’s Board of
M BIF formally launched.  etro’s Board of
M  IF provided more than
B  IF provided more than
B  etro’s Board of
M
Directors provided Directors authorized $8 million in financial $15 million in financial Directors authorized
authorization for Metro december 2015 the expansion of the assistance to directly assistance to directly the expansion of the
to establish the pilot  etro’s Board of
M BIF to include “mom impacted businesses impacted businesses along BIF to include “mom
Business Interruption Directors authorized and pop” businesses along these Metro transit these Metro corridors: and pop” businesses
Fund (BIF). the expansion of the directly impacted by project corridors: • Crenshaw/LAX directly impacted by
BIF to include “mom transit rail construction • Crenshaw/LAX •P urple Line Extension transit rail construction
and pop” businesses along Metro’s Purple Line • Purple Line Extension Section 1 and Section 2 along Metro’s Purple Line
directly impacted by Extension Section 2. Section 1 •R egional Connector, Extension Section 3.
unprecedented full • Regional Connector, Little Tokyo area
street closures with a march 2019
Little Tokyo area
duration greater than  IF has provided more
B
• Regional Connector,
six continuous months, than $20.1 million in
2nd/Broadway segment
such as the 2nd/Broadway financial assistance
segment of the Regional to directly impacted
Connector. businesses along these
Metro transit project
BSC BIF

corridors:
• Crenshaw/LAX
• Purple Line Extension
Section 1 and Section 2
• Regional Connector,
Little Tokyo area

july 2014 february 2015 december 2016 march 2017 january 2018 february 2019
Metro’s Board of 
BSC formally launched. Metro expanded the BSC provided assistance BSC provided small BSC has contacted more
Directors authorized BSC program to provide to more than 300 business owners along than 400 businesses
the establishment of an increased level businesses along the Crenshaw/LAX along the Crenshaw/
Metro’s Crenshaw/LAX of services to small the Crenshaw/LAX transit corridor with LAX transit corridor; and
Pilot Business Solution businesses along the transit corridor. more than 1,000 referrals over 300 businesses
Center (BSC). Crenshaw/LAX corridor. to expert professionals. have completed intake/
assessment.

2014 2015 2016 2017 2018 2019


$ 20.1
we have awarded over

million

340
in grants to more than

small “mom and pop” businesses.

“Our experience with Metro and the


BIF has been great. Staff made certain
that we understood all the phases of
the street closures and how to keep our
customers informed, thus minimizing
our customers’ inconvenience. Staff
was also instrumental in helping us
regain and recuperate lost revenues
from the street closures.”
– Business owner Elizabeth Villarreal
of Brides by Liza has received support
from the BIF during the construction
of Metro’s Purple Line Extension
Section 2.
Since the inception of the program, the Business

business Interruption Fund has provided financial assistance


to “mom and pop” businesses impacted by Metro’s

interruption transit rail construction. Metro’s projects will be


transformative to communities throughout LA,

fund thus we look forward to continuing to help


businesses thrive during and after construction.
Metro’s Board of Directors recognizes receiving a grant, Metro continues
the importance of supporting small to support the businesses’ ability
businesses during construction to sustain through the challenges
and how vital it is to the economic of construction.
sustainability of communities. As
such, the agency’s commitment is Small businesses that have received
unwavering to small businesses; as grants represent an amazingly
we continue to designate $10,000,000 diverse business community that is
annually for implementation of the representative of LA County. Owners
Business Interruption Fund. of restaurants, retail stores, salons,
auto repair shops, dry cleaners and
In collaboration with Pacific many other specialty businesses have
Coast Regional Small Business been helped by the BIF.
Development Corporation (PCR),
a well-known Los Angeles based Recognizing Metro’s commitment to
Community Development Financial being a trusted community builder
Institution (CDFI) and Small Business and partner, it has been a priority to
Development Center (SBDC), Metro outreach and engage business and
has provided financial assistance community members.
to more than 340 small “mom and
Since launching the BIF, Metro
pop” businesses located along
staff has attended more than 150
the Crenshaw/LAX Transit Project,
community meetings and events,
the Little Tokyo area and the 2nd/
and hosted more than 50 workshops
Broadway segment of the Regional
throughout our diverse communities.
Connector, and Section 1 and Section
This level of engagement has resulted
2 of the Purple Line Extension.
in extraordinary confidence from
The BIF has demonstrated Metro’s business owners and community
ongoing commitment to the members, and continues to
communities and business corridors demonstrate Metro’s commitment
that have been impacted by transit rail to help businesses as we build for
construction. With 85% of businesses the future.
remaining open 12 months after
Business Interruption Fund Facts at a Glance Business Information
monthly as of march 2019 quarterly as of cy2018 q4

1115 BIF Applications Submitted Businesses by Category


673 5% Service
3% 30%
Retail
241 1% Professional
51 106 44
61% Commercial Property Owners
Crenshaw/LAX Purple Line Extension Purple Line Extension Regional Connector, Regional Connector,
Transit Project Section 1 Section 2 Little Tokyo Area 2nd/Broadway Segment
Non-Profits

$20,197,675.33 Value of BIF Grants Awarded Businesses by


24% Years of Operation
$11,523,253.31
23% 2 to 5 years
$4,734,838.79 26% 6 to 10 years
$1,896,164.16 27% 11 to 20 years
$1,093,255.04 $950,164.03

21+ years
Crenshaw/LAX Purple Line Extension Purple Line Extension Regional Connector, Regional Connector,
Transit Project Section 1 Section 2 Little Tokyo Area 2nd/Broadway Segment

Measures of Effectiveness quarterly as of cy2018 q4


858 BIF Grants Awarded

504 100% 97%


Businesses referred to
support services post Completed applications
187 93 processed within nine
grant award
38 36 business days
goal: 75%
goal: 100%
Crenshaw/LAX Purple Line Extension Purple Line Extension Regional Connector, Regional Connector,
Transit Project Section 1 Section 2 Little Tokyo Area 2nd/Broadway Segment

87%
Clients satisfaction rating
341 BIF Grantees goal: 100%
93%
189 Businesses remaining
open after six months
of grant award
goal: 100%
85% 83%
72
24 33 23 Businesses remaining Businesses remaining
open after 12 months open after 24 months
of grant award of grant award
Crenshaw/LAX Purple Line Extension Purple Line Extension Regional Connector, Regional Connector, goal: 100% goal: 100%
Transit Project Section 1 Section 2 Little Tokyo Area 2nd/Broadway Segment
“Metro’s BSC has been instrumental
in assisting us. The staff has and

53%
continues to provide much needed
help with grant funding, website
design and a host of other support
services. I am also grateful for the
assistance received from the BIF.
of bif grantees are community-anchored businesses

10
Thank you, Metro, for supporting
my business!” and have been operating for more than

years.
– Business owner Cary Jordan of
Jordan’s Hot Dogs has received
support from the BIF and BSC
during construction of Metro’s
Crenshaw/LAX Transit Project.
Spanning four years, Metro’s first-ever
Business Solution Center (BSC) continues to
provide hands-on business support services
and referrals to small businesses along the
Crenshaw/LAX Transit Project corridor.
The BSC was created to provide has provided hands-on assistance
business development, support to more than 300 small businesses.
services and referrals to a network Metro continues to deliver business
of providers to the small businesses development services to small
within the Crenshaw and Inglewood businesses within these communities,
communities impacted by and referrals to experts in areas
construction of the Crenshaw/LAX such as: accounting management,
transit line. The BSC has continued access to financial capital, brand
to serve the South Los Angeles development, marketing, social media
business community impacted by and specialized business service
transit rail construction through a areas resulting in more than 1,000
dedicated resource center located individual referrals. Referral experts
within the community along the are often partners and small business
Crenshaw/LAX corridor. owners located within the Crenshaw
and Inglewood communities allowing
The mission of the BSC is to enhance for community collaboration,
the capability of impacted businesses economic uplift and reinvestment.
to persevere through disruptions
caused by construction and ultimately Focusing on long-term business
take advantage of opportunities planning and leveraging technology,
arising from the completion of the Metro’s BSC has provided lasting
Crenshaw/LAX Transit Project. solutions through the development
of more than 20 first-ever business
Metro’s BSC is delivered by a team websites for small business owners.
of small business and economic Websites are designed at no cost in
development professionals. Metro consultation with each individual
in partnership with Del Richardson business owner. Metro’s BSC designs,
& Associates Inc. (DRA), through an tests and provides maintenance for
established collaborative with Vermont each site and assists with website
Slauson Economic Development content, photography of merchandise
Corporation (VSEDC) and the and business location, search engine
Los Angeles Urban League (LAUL), optimization, e-commerce and more.
Business Solution Center Facts at a Glance Areas of Service
quarterly as of cy2018 q4 quarterly as of cy2018 q4

4% 6% 5% 4% 3%
Businesses Contacted by Location – 460 4%

227
20% 14%
152 22% 27%

25%
32 22 27 20%
24% 22%
North of 48th to South of Inglewood Other Area
48th St 60th St 60th St Area
(Target Area)
Alignment 48th to 60th – At Grade

Method of Contact
340
Accounting Management Marketing
Access to Capital Social Media & Website
Business Development Zoning & Land Use
52 60
8 Business Interruption Fund

Canvassing Email/Phone Walk-In Website

Business Support Status


Measures of Effectiveness quarterly as of cy2018 q4
1127
100%
351
Service request
responded to within
46%
68 48 business hours Businesses that complete
goal: 100% service recommendations
goal: 100%
Intake/ Referrals Case
Assessment Management
(Target Area)
88%
BSC clients that engaged
Client by Industry Type in services post intake/
5%
76% assessment
6% goal: 80%
Auto Health Businesses sustained in
Beauty Media operations six months

9%
16%
17%
Business Services
Education
Non-Profit
Religious
post BSC intake
goal: 100%
75% 94%
1% Food Services Retail Businesses sustained Client satisfaction
12%
14% 2% in operations 12 months rating (based on
Financial Services Other
13% post BSC intake 18 businesses)
3% goal: 100% goal: 90%
2%
300
the bsc has referred over

businesses to resource providers, experts


and economic development professionals
throughout la county.

“Through the Metro BSC, I was able


to attend informative workshops and
received direct assistance in website
development, mobile and search
engine optimization, accounting
and QuickBooks. The BSC staff
has made a great difference toward
helping me sustain and grow Ride On!
Bike Shop/Co-op.”
– Business owner Adé E. Neff of
Ride On! Bike Shop/Co-op has
received support from the BSC
during construction of Metro’s
Crenshaw/LAX Transit Project.
Listening closely to our small business the bif and bsc collaboratives
partners has provided us with first-hand
knowledge, lessons learned and best
practices to enrich and improve the BIF and
730
have conducted more than

direct outreach activities to successfully


BSC programs. In the last four years, we have engage the small business community.
been able to incorporate enhancements and
deliver the programs with greater innovation.
We have learned that direct Capturing feedback and promoting
community outreach and in-person engagement of the small business
engagement is the most effective community early into the implementation
way for building community trust of the small business programs has
and engaging the community in the provided an opportunity to enhance the
programs. This has led to delivering structure of each of the pilot programs.
programs that meet the needs of the Consistently gathering feedback and
businesses impacted by construction. ensuring ongoing program engagement
over the last four years has afforded
Each program has been delivered Metro an opportunity to be collaborative,
through a collaboration of small responsive and proactive with each of
business professionals and Metro the pilot programs.
staff. The great diversity of the
business communities that comprise In delivering the BIF through defined
our county demonstrates the program eligibility requirements
importance of having diverse teams. and guidelines, Metro has ensured “Metro’s expansion has impacted our
equitable access to financial resources business in terms of reduced street level
Since the inception of the BIF
for businesses in each of the transit visibility and customer access. As such,
and BSC pilot programs, we have
rail project corridors. we are grateful that the BIF grant
learned that ongoing and clear
came when it did and touched that a
communication between program
program like this even exists. Despite
staff, community members,
our longevity of 32 years in the heart
constituents and stakeholders, of LA, our small shop could not endure
as well as collaboration with without the help and recognition of
construction outreach staff are our community and those that run it.
vital to the success of the small We look forward to serving our fellow
business programs. Angelenos for another 30 years.”
– Business owner Paula Kim of
Kidsland has received support from
the BIF during construction of Metro’s
Purple Line Extension Section 1.
“We have been in Little Tokyo a long
time and are thankful the Business

1,200
Interruption Fund has been able
more than
to help since construction began.
The assistance we received from
Metro for our business has really
made a difference.”
jobs have been sustained through financial
– Business owner Noboru Kakuma of
NT Auto Repair has received support assistance provided by the bif.
from the BIF during the construction
of Metro’s Regional Connector Transit
Project, Little Tokyo area.
Metro’s Business Interruption Fund
metro.net/bif

Metro’s Business Solution Center


metrobsc.net/crenshaw
19-2684bg ©2019 lacmta

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