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MMR - FY20 - Department of Small Business Services

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  • Parent Document:: Mayor's Management Report - Fiscal Year 2020
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      • DEPARTMENT OF SMALL BUSINESS
      • SERVICES Jonnel Doris, Commissioner
      • DEPARTMENT OF SMALL BUSINESS SERVICES | Page 243
      • WHAT WE DO
      • The Department of Small Business
      • Services (SBS) makes it easier for
      • businesses in New York City to start,
      • operate and grow by providing
      • direct assistance to business
      • owners, fostering neighborhood
      • development in commercial districts
      • and linking employers to a skilled
      • and qualified workforce. SBS runs
      • the City’s NYC Business Solutions
      • Centers, Industrial Business
      • Solutions Providers and Workforce1
      • Career Centers; provides grants
      • and services to support the growth
      • of local community and economic
      • development organizations
      • throughout the City, oversees
      • the largest network of Business
      • Improvements Districts (BIDs) in
      • the country; and administers the
      • Minority and Women-owned
      • Business Enterprise (M/WBE)
      • Program.
      • FOCUS ON EQUITY
      • Equity and opportunity are at the core of the work we do at SBS, and our key
      • values—collaboration, innovation, and adaptability—are woven into all we do.
      • Collaborating with the community to design programs and services that directly
      • address their needs. Recommending bold and innovative solutions. Adapting to a
      • changing world. These values lay the foundation for our three pillars–good jobs,
      • stronger businesses and thriving neighborhoods. SBS is committed to ensuring
      • economic security for all New Yorkers by providing a wide range of services that help
      • businesses, jobseekers and communities throughout the five boroughs.
      • Through business programs such as Women Entrepreneurs NYC (WENYC), the agency
      • has committed to providing customized services to 5,000 women entrepreneurs in
      • underserved communities. As part of the City’s Black entrepreneurship initiative (BE
      • NYC), in late 2019 and early 2020 SBS engaged more than 1,500 business leaders,
      • advocates and community members around the question of strengthening and
      • supporting Black entrepreneurship in NYC. As part of its efforts to close the racial
      • wealth gap the agency also oversees certification and capacity building services
      • for Minority and Women-owned Business Enterprises (M/WBE). To date, SBS has
      • certified over 10,000 M/WBEs through Fiscal 2020, more than doubling the certified
      • pool of M/WBEs in less than three years, achieving a goal set by Mayor de Blasio
      • in 2016.
      • SBS is investing in the future of New York City’s workforce and equipping jobseekers
      • with the skills they need to build careers in the 21st century economy. Supporting
      • the Mayor’s Career Pathways plan, SBS trains New Yorkers for good-paying jobs
      • and links jobseekers to employment in fast-growing industries with opportunities
      • for advancement and has developed targeted services for immigrants, out of school,
      • out of work youth and people formerly acquainted with the criminal justice system.
      • OUR SERVICES AND GOALS
      • SERVICE 1 Help businesses start, operate and expand in New York City.
      • Goal 1a Ensure that businesses and entrepreneurs have easy access to a
      • variety of high quality support services.
      • Goal 1b Retain jobs and businesses in New York City by administering
      • incentive programs for facility renovation and promoting retention
      • of NYC businesses and relocation of businesses to NYC.
      • SERVICE 2 Match businesses in need of workers with qualified
      • applicants.
      • Goal 2a Ensure that businesses have timely access to qualified job applicants.
      • SERVICE 3 Provide financial support and technical assistance for
      • New York City’s commercial districts throughout the five
      • boroughs.
      • Goal 3a Strengthen and expand New York City’s Business Improvement
      • District (BID) program and other local economic development
      • organizations.
      • SERVICE 4 Help minority and women-owned businesses identify and
      • compete for City contracts.
      • Goal 4a Increase the number of Minority and Women-owned Business
      • Enterprises (M/WBEs) that obtain City contracts.
      • Page 244 | MAYOR’S MANAGEMENT REPORT
      • HOW WE PERFORMED IN FISCAL 2020
      • SERVICE 1 Help businesses start, operate and expand in New York City.
      • Goal 1a Ensure that businesses and entrepreneurs have easy access to a variety of high quality support services.
      • In Fiscal 2020, SBS served 22,460 unique customers and businesses across the five boroughs. The nearly seven percent
      • increase from the prior fiscal year is due to an overall increase in division-wide performance, as well as increased need
      • as small businesses were impacted by COVID-19. During this same reporting period, SBS helped small businesses obtain
      • 4,750 financing awards totaling $122.6 million. The number of awards tripled and the award value compared increased
      • 60 percent compared to the prior fiscal year, largely due to COVID-19 financing programs including the Small Business
      • Continuity Loan and Employee Retention Grant. Eighty percent of financing awards were COVID-19 related and 38 percent
      • of the total award value was due to COVID-19 financial products.
      • The number of unique businesses served by SBS programs that help navigate government was almost half of the amount
      • in the prior fiscal year. This decrease is due to certain cross-agency services made more efficient under the Mayor’s Small
      • Business First initiative, as well as a shift of resources to focus on COVID-19 business recovery, emergency response and
      • relief. The number of businesses opened with assistance from SBS decreased by almost a third to 376 and the number
      • of hires at those businesses decreased by 20 percent to 3,463. This decrease is largely due to COVID-19, during which
      • time fewer businesses opened citywide and SBS staff trained to help businesses open were reallocated to the pandemic
      • response effort.
      • Performance Indicators
      • Actual Target Trend
      • FY16 FY17 FY18 FY19 FY20 FY20 FY21 5-Year
      • Desired
      • Direction
      • Unique customers and businesses served 14,128 18,352 19,842 21,069 22,460 * * Up Up
      • « Unique businesses receiving financial awards (facilitated
      • or disbursed) 432 593 825 977 4,525 470 470 Up Up
      • « Financial awards to businesses (facilitated or disbursed) 567 658 1,074 1,186 4,750 540 540 Up Up
      • Value of financial awards to businesses (facilitated or
      • disbursed) ($000) $44,983 $45,701 $54,234 $76,152 $122,610 * * Up Up
      • « Businesses opened with assistance from SBS 915 867 537 529 376 ñ ñ Down Up
      • Projected number of hires by businesses opened with assistance from SBS 12,759 10,096 5,204 4,355 3,463 * * Down Up
      • Unique customers served by programs that help navigate
      • government 3,861 5,484 5,230 5,176 2,771 * * Down *
      • « Critical Indicator “NA” Not Available ñò Directional Target * None
      • Goal 1b Retain jobs and businesses in New York City by administering incentive programs for facility renovation
      • and promoting retention of NYC businesses and relocation of businesses to NYC.
      • The Energy Cost Saving program (ECSP) and its companion program, the Lower Manhattan Energy Program (LMEP), help
      • retain and attract eligible businesses by reducing energy cost associated with relocation or capital improvements. Lower
      • energy costs are a significant incentive to promote business retention for firms and facilities seeking to move, modernize
      • and/or expand. The programs save businesses up to 45 percent on eligible utility costs.
      • Although the Energy Cost Savings Program (ECSP) was scheduled to expire at the end of Fiscal 2020, it has been extended
      • until June 2023. During Fiscal 2020, ECSP approved 58 businesses for benefits representing almost 3,200 jobs. The
      • participants during Fiscal 2020 were generally larger businesses, with more employees, compared to the prior year. These
      • were larger energy users that had higher estimated energy savings relative to last year and significantly greater capital
      • investment. Some included multi-tenant commercial and industrial renovation projects within the boroughs that will be
      • able to confer benefits to the smaller businesses renting space within the facilities.
      • The Lower Manhattan Energy Program (LMEP) was also scheduled to expire in June 2020 but has been extended until
      • June 2023. The LMEP, measured on a cumulative basis, saved 276 commercial businesses tenants $4.9 million in energy
      • cost during Fiscal 2020. These decreases from the prior year were expected. The LMEP has a finite number of potentially
      • eligible buildings that can qualify for the program and the majority have applied and are completing their respective benefit
      • schedules. There are only a few potential qualified projects that are positioned to seek approval at this time.
      • DEPARTMENT OF SMALL BUSINESS SERVICES | Page 245
      • Performance Indicators
      • Actual Target Trend
      • FY16 FY17 FY18 FY19 FY20 FY20 FY21 5-Year
      • Desired
      • Direction
      • Value of Energy Cost Savings Program savings for businesses
      • ($000) $878 $2,003 $678 $816 $1,276 * * Down *
      • Jobs created or retained by Energy Cost Savings Program 1,060 9,753 3,403 2,446 3,191 * * Down *
      • Value of Lower Manhattan Energy Program savings for active
      • commercial tenants (cumulative) ($000) $10,028 $7,905 $6,105 $5,069 $4,893 * * Down *
      • Commercial tenants active in Lower Manhattan Energy Program 1,007 784 463 321 276 * * Down *
      • « Critical Indicator “NA” Not Available ñò Directional Target * None
      • SERVICE 2 Match businesses in need of workers with qualified applicants.
      • Goal 2a Ensure that businesses have timely access to qualified job applicants.
      • The Workforce1 Career Center system served a total of 93,944 jobseekers in Fiscal 2020. More than a third were served
      • exclusively online or over the phone as the 18 Workforce1 Career Centers paused in-person services in mid-March due to
      • COVID-19. The reduction in number of job seekers served and walk in traffic to Centers when compared to last year is due
      • to the impact of COVID-19. New Yorkers successfully connected to 26,204 jobs with the support of Workforce1 in Fiscal
      • 2020, making this the eighth year in a row that this target has been exceeded. The average hourly wage for the reporting
      • period was $16.66, compared to $15.73 last year.
      • SBS offers training programs that were designed with employer input to ensure the New Yorkers we train acquire in-demand
      • skills. These programs include trainings with a single provider, employer-based trainings and individual training grants
      • providing jobseekers with their choice of trainer for a variety of in-demand occupations in tech, healthcare, manufacturing,
      • construction, transportation, food, media and entertainment. In Fiscal 2020, SBS enrolled 2,123 New Yorkers into trainings,
      • of these 429 participated in trainings that were made available primarily online due to COVID-19 (some trainings, such as
      • commercial driving, still required limited in-person sessions). SBS stood up a new Home Health Aide training to respond to
      • the increased demand for these workers during the pandemic.
      • Performance Indicators
      • Actual Target Trend
      • FY16 FY17 FY18 FY19 FY20 FY20 FY21 5-Year
      • Desired
      • Direction
      • « Workforce1 systemwide job placements and promotions 28,455 28,170 25,534 27,367 26,204 25,000 25,000 Neutral *
      • New jobseekers registered through the Workforce1 Career Center
      • system 55,647 54,816 52,285 52,028 44,208 * * Down *
      • Walk-in traffic at Workforce1 Centers 273,753 271,573 275,137 260,219 240,175 * * Down *
      • « Customers enrolled in training 3,649 3,464 3,756 2,195 2,123 ñ ñ Down Up
      • Unique customers served 104,715 104,239 102,357 100,677 93,944 * * Neutral Up
      • « Businesses awarded funding for employer-based training 57 54 15 30 12 * * Down *
      • « Critical Indicator “NA” Not Available ñò Directional Target * None
      • SERVICE 3 Provide financial support and technical assistance for New York City’s commercial districts
      • throughout the five boroughs.
      • Goal 3a Strengthen and expand New York City’s Business Improvement District (BID) program and other local
      • economic development organizations.
      • In Fiscal 2017, SBS awarded 11 community-based organizations (CBOs) nearly $8.5 million over 3.5 years to revitalize
      • commercial corridors in six neighborhoods across the five boroughs through the Neighborhood 360° initiative. The
      • funding addresses local needs identified through SBS’ collaborative work with CBOs on the completion of Commercial
      • District Needs Assessments (CDNAs) in East New York, Downtown Staten Island, Jerome Avenue in the Bronx, Downtown
      • Flushing, Inwood and East Harlem. In Fiscal 2020, SBS awarded two CBOs nearly $1.5 million over three years to revitalize
      • commercial corridors in Downtown Far Rockaway. Moving forward, SBS will continue to partner with communities to
      • conduct CDNAs and leverage them as a comprehensive planning tool to help identify needs and opportunities for local
      • neighborhood revitalization.
      • Page 246 | MAYOR’S MANAGEMENT REPORT
      • SBS continued to build the City’s Business Improvement District (BID) program by assisting local organizations and merchants
      • associations interested in creating a BID with the planning, outreach and legislative phases of BID formation. This included
      • oversight of the legislative approval of one new boundary expansion of an existing BID, Downtown Flushing in Queens
      • and the start-up of one new BID, Throggs Neck in the Bronx, which began services in Fiscal 2020. SBS also continued to
      • offer technical assistance, capacity building workshops and webinars, best practice sharing, board of director’s support
      • and contract administration and oversight to the City’s 76 existing BIDs, the largest network of its kind in the country. SBS
      • also continues to work with the Department of Finance to carry out the BID assessment billing process to over 44,000 tax
      • lots located within BIDs, amounting to over $139 million in BID assessment funds this year.
      • SBS awarded $345,000 to non-profit partners to provide a broad array of capacity building and organizational development
      • programs for Community-Based Development Organizations (CBDOs) across the City, in order to strengthen these City
      • partners over the long-term. This past year, SBS offered the nine-month-long Neighborhood Leadership Program with
      • the Coro New York Leadership Center to 20 CBDO professionals, non-profit legal assistance, non-profit governance and
      • financial management workshops, 1-on-1 coaching to executive directors, media and video training and community
      • engagement.
      • SBS also completed the fourth year of its Neighborhood 360° Fellows program, whereby ten fellows who are temporary
      • SBS employees are embedded in community organizations to help complete local commercial revitalization projects, build
      • stronger connections to SBS and the City and continue to build a pipeline of new talent in the community development
      • field. SBS also continued its storefront improvement program across the City, offering technical assistance to CBDOs
      • looking to develop a local storefront improvement program, while directly assisting small businesses and property owners
      • in two target neighborhoods, Downtown Jamaica and East Tremont, with pursuing physical storefront improvements via
      • reimbursement grants.
      • The Avenue NYC Program, funded via Federal Community Development Block Grants (CDBG), provided more than
      • $1.3 million in grant awards to CBDOs to boost underserved neighborhoods through community development projects.
      • The awards were used to expand the capacity of CBDOs—including BIDs, local development corporations, merchants
      • associations and other organizations operating in low- to moderate-income neighborhoods—to execute impactful
      • commercial revitalization projects. SBS has recently shifted its focus from project-based grants to larger grants for multiyear program commitments in an aim to greatly enhance the capacity of selected CBDOs to understand local neighborhood
      • needs and deliver more impactful community development projects.
      • In light of the disruption to public life and commercial activity due to COVID-19, SBS worked with CBDOs and BIDs to
      • think innovatively and prioritize COVID-19 response and recovery commercial revitalization activities. Such activities include
      • providing technical assistance for businesses applying to emergency government COVID relief programs, helping businesses
      • get online, reconfiguring public space to enhance business recovery and coordinating Open Streets and Open Streets:
      • Restaurants programs, among many others. SBS enhanced its capacity building programming to support CBDOs and BIDs
      • in addressing COVID recovery, with a focus on sharing best practice and case studies through weekly convenings, webinars,
      • roundtables and communications.
      • Performance Indicators
      • Actual Target Trend
      • FY16 FY17 FY18 FY19 FY20 FY20 FY21 5-Year
      • Desired
      • Direction
      • « City block faces receiving supplemental sanitation services
      • through BIDs 3,600 4,044 4,065 4,108 4,325 3,800 3,800 Up Up
      • « Average acceptably clean BID sidewalk ratings (%) 96.8% 97.8% 98.4% NA 98.2% 97.0% 97.0% NA Up
      • Value of AvenueNYC local development corporations funding
      • ($000,000) $1.30 $1.30 $1.45 $1.71 $1.30 * * Up *
      • « Critical Indicator “NA” Not Available ñò Directional Target * None
      • DEPARTMENT OF SMALL BUSINESS SERVICES | Page 247
      • SERVICE 4 Help minority and women-owned businesses identify and compete for City contracts.
      • Goal 4a Increase the number of Minority and Women-owned Business Enterprises (M/WBEs) that obtain City
      • contracts.
      • After achieving Mayor de Blasio’s ambitious goal of certifying 9,000 M/WBEs during Fiscal 2019, the Minority and Womenowned Business Enterprises Program certified and recertified a total of 2,436 M/WBEs during Fiscal 2020, increasing the
      • number of certified M/WBEs in the program to 10,034 by the end of the fiscal year. This represents an 11 percent increase
      • over the 9,063 firms certified one year earlier. The M/WBE recertification rate was over 62 percent in Fiscal 2020, exceeding
      • the annual target of 60 percent.
      • During Fiscal 2020, the Governor signed legislation that increased the City’s small purchase authority to $500,000 for all
      • procurement categories, including construction. SBS is working to ensure that certified firms can compete for and perform
      • on contracts that will be issued using the revised M/WBE non-competitive method, by working to improve the quality of
      • data in the online directory of certified firms and publicizing the availability of contract financing and bonding assistance.
      • The number of M/WBEs that were awarded City contracts increased by 1 percent, to 1,539, compared to the prior year.
      • Additionally, the number of M/WBEs that were awarded City contracts after receiving direct assistance from SBS rose 3
      • percent to 1056, compared to the previous year.
      • Performance Indicators
      • Actual Target Trend
      • FY16 FY17 FY18 FY19 FY20 FY20 FY21 5-Year
      • Desired
      • Direction
      • « Total Minority and Women-owned Business Enterprises certified 4,516 5,122 6,829 9,063 10,034 9,000 9,000 Up Up
      • « Minority and Women-owned Business Enterprises awarded
      • City contracts 1,011 1,131 1,396 1,528 1,539 1,223 1,223 Up Up
      • « M/WBEs awarded contracts after receiving procurement and
      • capacity building assistance 723 824 976 1,022 1,056 891 891 Up Up
      • « Annual M/WBE recertification rate 53.4% 61.8% 79.6% 101.0% 62.6% 60.0% 60.0% Up Up
      • Newly certified and recertified businesses in M/WBE Program 1,030 1,675 2,770 3,281 2,436 * * Up Up
      • « Critical Indicator “NA” Not Available ñò Directional Target * None
      • AGENCY CUSTOMER SERVICE
      • Performance Indicators Actual Target Trend
      • Customer Experience FY16 FY17 FY18 FY19 FY20 FY20 FY21 5-Year
      • Desired
      • Direction
      • CORE customer experience rating (0-100) 98 96 93 NA 97 * * NA Up
      • Letters responded to in 14 days (%) 100% 100% 100% 100% 100% * * Neutral Up
      • E-mails responded to in 14 days (%) 100% 100% 100% 100% 100% * * Neutral Up
      • Completed customer requests for interpretation 7,327 6,652 7,259 8,251 4,133 * * Down *
      • « Critical Indicator “NA” Not Available ñò Directional Target * None
      • AGENCY RESOURCES
      • Resource Indicators Actual¹ Plan²
      • FY16 FY17 FY18 FY19 FY20 FY20 FY21 5yr Trend
      • Expenditures ($000,000)³ $282.5 $260.0 $267.2 $244.5 $423.7 $271.5 $180.3 Up
      • Revenues ($000,000) $54.9 $0.4 $0.4 $30.4 $0.2 $0.2 $13.1 Down
      • Personnel 302 325 304 307 309 373 345 Neutral
      • Overtime paid ($000) $30 $65 $57 $53 $75 $65 $65 Up
      • Human services contract budget ($000,000) $31.9 $29.8 $32.9 $31.9 $43.8 $43.0 $21.2 Up
      • ¹Actual financial amounts for the current fiscal year are not yet final. Final fiscal year actuals, from the Comptroller’s Comprehensive Annual Financial Report, will be reported
      • in the next PMMR. Refer to the “Indicator Definitions” at nyc.gov/mmr for details. ²Authorized Budget Level ³Expenditures include all funds “NA” - Not Available * None
      • Page 248 | MAYOR’S MANAGEMENT REPORT
      • SPENDING AND BUDGET INFORMATION
      • Where possible, the relationship between an agency’s goals and its expenditures and planned resources, by budgetary unit
      • of appropriation (UA), is shown in the ‘Applicable MMR Goals’ column. Each relationship is not necessarily exhaustive or
      • exclusive. Any one goal may be connected to multiple UAs, and any UA may be connected to multiple goals.
      • Unit of Appropriation
      • Expenditures
      • FY19¹
      • ($000,000)
      • Modified Budget
      • FY20²
      • ($000,000) Applicable MMR Goals³
      • Personal Services - Total $23.9 $27.8
        • 001 - Department of Business $16.2 $16.8 All
        • 004 - Contract Compliance and Bus. Opportunity $3.0 $3.6 1a, 1b, 2a, 4a
        • 010 - Workforce Investment Act $4.7 $7.4 1a, 4a
      • Other Than Personal Services - Total $220.6 $396.0
        • 002 - Department of Business $67.5 $76.6 All
        • 005 - Contract Compliance and Bus. Opportunity $4.7 $6.1 1a, 1b, 2a, 4a
        • 006 - Economic Development Corporation $57.4 $154.7 Refer to table in EDC chapter
        • 011 - Workforce Investment Act $53.3 $120.5 1a, 4a
        • 012 - Trust for Gov.’s Island and NYC & Co. $37.6 $38.0 1b
      • Agency Total $244.5 $423.7
      • ¹Comprehensive Annual Financial Report (CAFR) for the Fiscal Year ended June 30, 2019. Includes all funds. ²City of New York Adopted Budget for Fiscal 2020, as of June
        1. Includes all funds. ³Refer to agency goals listed at front of chapter. “NA” Not Available *None
      • NOTEWORTHY CHANGES, ADDITIONS OR DELETIONS !
      • • Gregg Bishop served as Commissioner for the reporting period through April 2020. Jonnel Doris was appointed
      • Commissioner in May 2020.
      • • Due to a software coding error that has since been corrected, some cleanliness rating data between December 2018
      • and June 2019 was found to be flawed. While only a portion of ratings were affected, citywide cleanliness scores from
      • the Mayor’s Office of Operations Scorecard program cannot be re-calculated at the level of confidence required to be
      • included in the Mayor’s Management Report. This impacts the Fiscal 2019 value for ‘Average acceptably clean BID
      • sidewalk ratings (%)’.
      • • The Fiscal 2020 data for ‘Minority and Women-owned Business Enterprises awarded City contracts’ and ‘MWBEs
      • awarded contracts after receiving procurement and capacity building assistance’ is based on preliminary data.
      • ADDITIONAL RESOURCES
      • For more information on the agency, please visit: www.nyc.gov/sbs.
MMR - FY20 - Department of Small Business Services