Philly’s Black business leaders are urged to go after government contracts

There’s money to be made from government contracts, particularly from American Rescue Plan pandemic relief. Black business owners were told Friday that they need to be ready to apply.

“My email inbox is flooded with asks from Caucasian constituents,” State Rep. Darisha Parker, who represents the 198th District in Philadelphia, told a crowd of Black business leaders Friday.

“So where are all of you? I call you to come to the table and be ready. Have your elevator pitch ready, your paperwork, and your proposal package, and stay informed about what’s holding you back,” Parker said to applause. “Then call my cell phone.”

That was the message from local officials and mayors from across the country, who convened for three days last week in Philadelphia. The African American Chamber of Commerce of Pennsylvania, New Jersey and Delaware hosted its second annual National Convening of Black Mayors — a series of discussions, receptions, and roundtable conversations about Black entrepreneurship, equity, and the local economy.

Regina Hairston, president and CEO of the African American Chamber, pleaded with local business owners to lobby their elected officials and stay informed about budget cycles — when funds become available for prime contractors and subcontractors to the city and the state.

“Many people don’t grow up in families who talk about this stuff. But the chamber will lobby for you and make sure you’re ready,” Hairston told the gathering Friday at P4 Hub, a Black-owned coworking space on Wayne Avenue.

On a panel Friday, Jovan Goldstein, owner of JTGoldstein, a tax accounting and business advisory firm headquartered in Philadelphia, said clients often ask him how government advances businesses.

“I had a five-year contract with a local government that allotted 25% to minorities. In 2021, they renewed and added women to the subcontractor list. That was powerful,” Goldstein said. “The prime contractor gave 40% of the work to minority- and women-owned businesses.”

Entrepreneurship is the best path to success, especially for Black communities trying to close the wealth gap, said Michael K. Pearson, former CEO and founder of Philadelphia-based Union Packaging. He now serves on the board of the Philadelphia Foundation.

During his career, he said, “Corporate America gave me an entry point, but entrepreneurship created wealth.”

Goldstein recalled the pivotal decision by Atlanta’s first-ever Black mayor, Maynard Jackson, in the 1970s to negotiate 25% of contracts for the new airport to go to Black workers and contractors. As Atlanta was becoming a hub for air travel, Jackson demanded that they receive a share of the business building and operating a new terminal at what’s now called Hartsfield-Jackson Atlanta International Airport. It’s named after former mayors William B. Hartsfield and Jackson.

“Business follows government, but it’s incumbent on forming public-private partnerships,” Goldstein said.

The mayor of Augusta, Ga., Hardie Davis, added: “The challenge for us is we hear [about the needs] after the fact. So be intentional about your ask. Come to us first before you hit those barriers. Often we don’t even know about the problem.”

Black-owned businesses know there’s money on the table, Hairston told the attendees, which included the mayors of Augusta, Cleveland, Montgomery, Ala., St. Louis, and Chester, as well as Philadelphia City Councilmember Derek Green, former Mayor Michael Nutter, and regional business leaders.

Under Mayor Jim Kenney, the administration could leave unspent more than $800 million in federal pandemic relief from the American Rescue Plan, which will deliver a total of $1.4 billion to city coffers. The administration this year spent only $250 million of the aid, despite City Council’s authorizing a $575 million drawdown, and Kenney’s budget proposal would use up to $335 million next year.

Hairston didn’t mince words about the chamber’s choice for next leader of the city when Kenney’s term expires in 2024: “We want a mayor who’s good for all the people.”

Parker closed Friday’s panel by urging Black business owners to follow the calendar for city and state budgets.

“Don’t come to me in June or July, when the budget deals are already done,” she said. “Start lobbying us earlier. This is a once-in-a-lifetime opportunity to engage and do something generational.”