New study reveals minority-owned suppliers show greater financial stability, resiliency than non-minority owned businesses

FOR IMMEDIATE RELEASE:

Contact:
Lisa Johnson
ljohnson@rebirthanalytics.com
425-766-8736

New study reveals minority-owned suppliers show greater financial stability, resiliency than non-minority owned businesses

 SEATTLE, Wash. – August 19, 2020 – Minority suppliers are in a healthier financial position and are more resilient than their non-minority supplier counterparts, according to a new predictive analytic modeling study conducted by Rebirth Analytics and the Northwest Mountain Minority Supplier Development Council (NWMMSDC).

An analysis of over 300 privately held minority suppliers across seven states representing over $8.1 billion in gross revenue revealed that minority suppliers are outperforming both their publicly-traded and privately-held counterparts. The study, which compared private companies to their industry peers leveraging financial information from corporate balance sheets and financial statements, focused on 12 industries, including manufacturing, technology, mining, professional and scientific services, among others. NWMMSDC defines minority suppliers as companies owned, operated, and controlled by at least 51% Asian, Black, Hispanic, or Native Americans.

“Financial Health metrics are the best indicators of how a supplier will perform through disruptive market events, like the COVID-19 pandemic, and our study reveals that minority-owned businesses are displaying extremely high levels of resiliency through the crisis, and should emerge in a stable position post-crisis,” said Chonchol Gupta, CEO of Rebirth Analytics.

The context of the study’s findings is also relevant to government agencies, which have reported an under-representation of minority companies accessing the Small Business Administration’s Paycheck Protection Program (PPP) loans.

“Minority suppliers account for $14.6 billion in economic output, 90,352 jobs, and over 47,000 ethnic minority jobs, but 4.9 out of 10 minority suppliers who applied for PPP loans were denied,” said Fernando Martinez, president and CEO of NWMMSDC.

Despite the perception that minority suppliers are unstable through changing economic conditions, the findings offer a stark reminder that minority businesses are operating with resiliency and can continue to be relied upon by the large enterprises they service.

“In terms of revenue growth, minority suppliers in 10 out of the 12 industries we analyzed outperformed their non-minority privately-held peers, as well as their publicly-traded peers in three sectors – manufacturing, construction, and technology,” said Gupta.

“Increasing year-over-year revenue growth indicates that the minority suppliers are picking up more contracts and playing a more significant role in the companies they service, which in the Northwest include corporations such as Boeing, Costco, Microsoft, Nike, Starbucks, and T-Mobile,” said Martinez.

Rebirth Analytics and NWMMSDC are enthusiastic about the initial findings and have commissioned additional analysis to layer other elements such as credit scoring, access to capital, and large enterprise employment of minority suppliers into the study. For more information and to obtain a copy of the initial findings, contact info@rebirthanalytics.com.

About Rebirth Analytics

Founded in 2018, Rebirth Analytics provides evidence-based protection and visibility into an organization’s supply chain risks. We do this by aggregating data across six different risk categories and deploying the results to decision-makers almost instantly. Our integrated platform incorporates proprietary AI, enterprise-to-supplier specific views and externally validated data to provide users clarity on where risk may lie. Through our partnerships with Microsoft, IBM, and ESRI we deliver a single solution package that benefits a wide variety of sectors including manufacturing, retail, finance, insurance, hospitality, nonprofits and more. With customers throughout the world, Rebirth Analytics is a private company with offices in the U.S. and UK. Visit rebirthanalytics.com for more information or follow us at LinkedIn or Twitter.

About the Northwest Mountain Minority Supplier Development Council

Founded in 1978, the Northwest Mountain Minority Supplier Development Council is a nonprofit organization certifying, developing, and connecting Minority Business Enterprises (MBEs) with major corporations and public agencies. NWMMSDC is an affiliate of the National Minority Supplier Development Council (NMSDC) providing certification, membership and subscription services to the Pacific Northwest Mountain region which includes Alaska, Idaho, Montana, Oregon, Utah, Washington, and Wyoming.

Northwest Mountain MSDC Announces 2020 Virtual Events

The Northwest Mountain Minority Supplier Development Council has released the new dates for their 2020 premier events. Considering the global, national, and local health risks posed by the recent outbreak of COVID-19, the Northwest Mountain MSDC’s responsibility is, first and foremost, to support its Council Members, MBEs, and Community Partners. The Council has spent a significant amount of time thoughtfully assessing the current situation and have decided to go virtual for all 2020 events. Don’t forget to save the following dates:

Scholarship Fundraiser & Silent Auction: September 3, 2020

Leadership & Advocacy Awards: October 1, 2020

Business Conference 3 Part Event: October 8, 2020; November 12, 2020; December 10, 2020

More information, including how to register for these events, will be available soon.

About the Council
Founded in 1978, the Northwest Mountain Minority Supplier Development Council is a nonprofit organization whose mission is to drive economic value by equalizing opportunities. As an affiliate of the National MSDC, the Council certifies minority owned businesses and provides access to supplier development, supply chain inclusion, networking events and formal introductions. The Council serves the states of Alaska, Idaho, Montana, Oregon, Utah, Washington and Wyoming.
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Northwest Mountain MSDC Recognizes Excellence in Performance

NORTHWEST MOUNTAIN MSDC RECOGNIZES EXCELLENCE IN PERFORMANCE

The Northwest Mountain MSDC recognizes excellence in performance annually. On Friday, June 26, 2020, the Northwest Mountain Minority Supplier Development Council (Northwest Mountain MSDC) recognized organizations and individuals that excel at advocating, promoting, and contracting with Minority Business Enterprises. The 2019 Award Winners are:

Advocacy Awards: Presented to individuals who exemplify an unselfish commitment to Minority Business Enterprise Development.

John A. Gilmore Award: Matt Iseri, TokuSaku Consulting

Phyllis Gutierrez Kenney Award: Javier Valdez, State Representative and Roger Millar, WA State Department of Transportation

Robert L. Ryan Award: Catherine Martin, J.P. Morgan Chase Foundation

Leadership Awards:  Presented to Minority Business Enterprises that deliver excellence in performance and value to private or public sector customers.

Class 1 Supplier – Annual Revenues up to $1M dollars: Humbition Consulting, LLC

Class 2 Supplier – Annual Revenues between $1M – $10M dollars: Ahora Construction, LLC

Class 3 Supplier – Annual Revenues between $10M – $50M dollars: Viking Engineering + Construction

Class 4 Supplier – Annual Revenues above $50M: World Wide Technology, Inc.

Leadership Awards: Presented to the Public Agency and Private Sector Corporations that commit to the practice of Minority Business Enterprise inclusion.

Public Agency of the year: University of Washington

National Corporation of the year: Starbucks Corporation

Partnership Awards:  Presented to the organization that has, over a period of time, collaborated, supported, and participated in the growth and development of the Northwest Mountain MSDC.

Partnership of the Year: University of Washington Consulting and Business Development Center

Partnership of the Year: TRIO Group

President’s Award: Presented to the individual that supports the Northwest Mountain MSDC in an outstanding manner throughout the year without expectation of recognition.

Chi Y. Pak, T-Mobile USA, Inc.

Title Sponsor Award: Presented to the organization that has assumed leadership for underwriting all Northwest Mountain MSDC major events.

Title Sponsor Award: T-Mobile USA, Inc.

Congratulations to all our Award Winners!

About the Council

Founded in 1978, the Northwest Mountain Minority Supplier Development Council is a nonprofit organization whose mission is to drive economic value by equalizing opportunities.  As an affiliate of the National MSDC, the Council certifies minority owned businesses and provides access to supplier development, supply chain inclusion, networking events and formal introductions. The Council serves the states of Alaska, Idaho, Montana, Oregon, Utah, Washington and Wyoming.

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NMSDC is Connecting MBEs with PPP Funding with Instructional Video

The NMSDC wants to ensure that no minority business owner “in need of PPP funding” is left behind! Please find the recently created and shared PPP Loan Application Instructional video featuring G. Winston Neal, President of BCF, and Ashley O’Neal, SVP with Midwest BankCentre below. To  learn more about the NMSDC’s efforts to help MBEs access PPP funding, click on the links below.

NMSDC Press Release for providing PPP loans to MBEs

NMSDC PPP Loan Instructions

View the PPP Loan Application Instruction Video – BCF/Midwest BankCentre

Apply for PPP Loan via BCF/Midwest BankCentre, applications need to be entered by June 26th

U.S. Bank and Paycheck Protection Program

U.S. Bank, member of the NMSDC, continues to provide Paycheck Protection Program (PPP) funds. If you are still interested in applying for PPP funds, please read the attached press release for application instructions (see below).

Seventy-five percent of our Council MBEs that have applied for PPP funds have received financial support. If you have not applied for PPP funding, please consider doing so. The net effect is that you are eligible to receive two months of forgivable wages and salaries, plus some mortgage, lease, and utility support.

Click here to read the Press Release

Click here to learn more about PPP

US Bank continues to take applications for the  Paycheck Protection Program (PPP) that may be beneficial to your business. On June 5 the President signed the Paycheck Protection Program (PPP) Flexibility Act into law, which affords significant changes to the PPP as outlined below.

US Bank is accepting new applications online through June 19. 

We accept applications for customers nationwide and for non-customers in states where we operate branches. If you know of a small business that may be interested, please share the attached information with more details on the programs. Small businesses can also visit usbank.com/ppp for more information or to apply.

Those with questions may call our Business Service Center at 800-673-3555 between Monday and Saturday from 8 a.m. to 8 p.m. CT.

What is the program?

The PPP is a potentially forgivable loan that helps small- and medium-sized businesses impacted by COVID-19 to cover payroll and other eligible non-payroll costs. For more information, please visit usbank.com/ppp.

What has changed?

Congress made substantial changes to the forgiveness rules and repayment terms, most importantly:

  • Extended covered period
    The Act lengthened the time that businesses have to incur costs to 24 weeks, so they may have more expenses eligible for forgiveness.
  • More flexibility on covered expenses
    The new rules require only 60 percent of the forgiveness amount to be used for payroll, while the rest can be used for non-payroll costs such as mortgage interest, rent and utilities.
  • Extended maturity date and payment deferral period
    New loans will have a 5-year term. In addition, borrowers will not have to start making payments until the SBA has completed its review of the borrower’s application for loan forgiveness. If the borrower does not apply for loan forgiveness within 10 months after the end of the covered period, payments must begin at that time.
  • Adjusted requirements for employment levels

Businesses have until December 31, 2020 to return to pre-COVID levels of employment and exemptions for some businesses who have had to reduce employment levels due to certain regulations.

If a business applied and received funding already, the changes apply to most existing loans as well, notwithstanding the loan agreements.

COVID-19 Response “New Normal” Planning

Have you started working on a plan on how to reopen your business in the midst of this COVID-19 Pandemic? The Seattle Metropolitan Chamber of Commerce, Challenge Seattle, Boston Consulting Group, together in partnership with over 200 regional/national/international companies have created a plan to help you.

Washington State COVID-19 Response “New Normal” Planning

Click here to view the short version of this report.

Click here to view the full report.