By Tiffany Rivera. October 28 2024.
Department of Commerce, Madre Tierra Philly. Photo courtesy of Madre Tierra Philly
Latino business owners play a vital role in driving Philadelphia's economy, navigating the challenges of long hours, tough work, and the many roles they take on each day.
Given that the election is less than a week away, small business owners (SBOs) have their ears tuned into the news, hoping presidential candidates have strong economic policies that can benefit their establishment.
WORC Staff, including Joana Montas, (second right). Photo courtesy of Joana Montas.
Organizations such as the Women’s Opportunities Resource Center (WORC) and Madre Tierra in Philadelphia are making a difference in the neighborhood with free workshops, resources, and loan offerings to help SBOs cover their bases for their operations.
Joana Montas, Director of Programs at WORC, talked about the importance of economic opportunities for Latinos and how there are few resources for them. Montas has been at the agency for two and a half years.
WORC promotes social and economic self-sufficiency primarily for underserved women and their families. The agency trains future business owners to get them educated on the steps to own a business.
“We have a lawyer on board as a consultant, we have tax CPAs on board that could help people with their taxes, we have consultants that will help clients with their business plans,” Montas said.
The agency also has an Individual Development Account (IDA) savings match program for first-time homeowners and commercial real estate lending programs that go up to 3,000 dollars.
Madre Tierra is a production company that focuses on strengthening Latine voices in the community by providing workshops for productions on podcasts, film series, and other digital content.
The organization is involved in the Community Commerce project, an initiative of the Philadelphia Department of Commerce that helps future entrepreneurs build their platforms.
Arianne Bracho, Executive Director of the Centro Integral de la Mujer Madre Tierra, has been working with the community of Philadelphia for over five years. Her work at Madre Tierra has not gone unnoticed.
“Our participation has focused on community outreach, helping to establish direct connections with local Hispanic merchants, and managing calls to ensure the participation of Latino entrepreneurs,” Bracho said.
Economic plans
Employees at WORC. Photo courtesy of Joana Montas
As the Trump and Harris campaigns continue to make their marks all over America, both presidential hopefuls are focusing on the economy, though they have few similarities in terms of how to boost the economy.
In regards to the Presidential election, Montas believes that the Kamala Harris Administration makes more sense for underserved SBOs because its agenda focuses in part on underserved communities.
“I know that if Vice President Kamala Harris is elected, it will benefit the small business owners. I know that she wants to pass a tax on the deduction law to increase it from 5,000 to 50,000 dollars. I know her plan is to expand the fund for community banks and Community Development Financial Institution (CDFI), which we are a CDFI,” she said.
Harris unveiled a proposal last month to increase the existing small business tax deduction for startups. Harris believes this plan will make it easier for small businesses to file taxes. She also stated that this idea will make it easier for SBOs to operate and provide financial gains. Harris also wants to make certain that one-third of federal contract dollars go to small businesses.
The current vice president in her campaign program also proposed to add $3 trillion to the national debt by providing tax cuts for American citizens who make less than $400,000 a year, and another $1.4 trillion by expanding the Child Tax Credit and Earned Income Tax Credit. In addition to tax cuts, Harris revealed a four-year plan to help first-time homebuyers. It includes providing up to $25,000 in down-payment support and a $10,000 tax credit for first-time homebuyers.
One of Trump’s economic plans is to shrink the corporate tax rate from 21 to 15 percent for companies that produce in the US. This tax cut will also be given to small businesses across the board. Trump also proposed to end income tax on tipped workers and remove the same tax toward Social Security earnings.
The voices of Latino small business owners
Alexie Encarnacion, the owner of Helado Chupi Chupi. Photo courtesy of Alexie Encarnacion.
Alexie Encarnacion, the owner of Chupi Helados Chupi, a pop-up selling all-natural artisan homemade paletas. Encarnacion stated that he did receive support to help start his business.
“I received a grant from the Hispanic Chamber of Commerce,” he said.
Hector Serrano, the owner of Boricua Restaurant #2, located in the Port Richmond area of Philadelphia, has years of business experience.
Serrano opened his first restaurant Boricua Restaurant #1 during the beginning of the COVID-19 Pandemic. Since then, Serrano has been striving to become one of Philadelphia’s leading Latino entrepreneurs.
However, the steps he took when opening Boricua were rough. He said that the process was a rollercoaster of emotions and confusing paperwork.
“It was so difficult filling out the applications to receive grants from the government,” said Serrano. “We heard that there was 10,000 dollars in grants, but it was a difficult process.”
In addition to the confusion of filling out applications, Serrano said there should be some clarity for first-time SBOs.
“If the city is going to give us grants, let them help us,” he said. “Not say, ‘you’re new’, ninety percent of these business owners are first-time and don't know the process, let's help them out.
For Encarnacion, he did receive some support, but it was a long process.
“I was applying for grants and just one was approved,” he said. “Everything that we have is collected by our work.”
Latine small business owners in Philadelphia have proposed specific solutions to enhance local support. Beyond providing information in Spanish, they emphasize the importance of having staff who not only understand business but are also familiar with the unique challenges immigrant entrepreneurs face.
Serrano’s advice for small business owners who are just in the beginning stages is to be prepared.
“Opening a commercial business, a lot of landlords don't care, a lot of contracts say, ‘As is’, " he said. “Read everything as much as you can.”
This content is a part of Every Voice, Every Vote, a collaborative project managed by The Lenfest Institute for Journalism. Lead support for Every Voice, Every Vote in 2024 and 2025 is provided by the William Penn Foundation with additional funding from The Lenfest Institute for Journalism, Comcast NBC Universal, The John S. and James L. Knight Foundation, Henry L. Kimelman Family Foundation, Judy and Peter Leone, Arctos Foundation, Wyncote Foundation, 25th Century Foundation, and Dolfinger-McMahon Foundation. To learn more about the project and view a full list of supporters, visit www.everyvoice-everyvote.org. Editorial content is created independently of the project’s donors.