| Name | Hal |
|---|---|
| Last Name | Bowling |
| Home Address | 100 Cherokee Blvd Chattanooga, Tennessee 37405 United States |
| Organization Name | LAUNCH |
| Describe Your Role In The Organization | Co-Founder and Executive Director |
| Organization Address | PO Box 903 Chattanooga, Tennessee 37401 United States |
| Website | https://www.launchcha.org |
| Best Phone Number To Reach You | 4235239307 |
| Alternate Phone Number | |
| Email Address | info@launchchattanooga.org |
| Alternate Email Address | kcotto@launchchattanooga.org |
| Please Describe Your Project In Detail | Started in 2011, LAUNCH exists to work towards an economically equitable society, where all people, regardless of race, gender, or socioeconomic status, have viable opportunities to create businesses and gain financial independence. We intentionally serve a diverse community, focused specifically on serving underrepresented individuals and communities including women, people of color, youth, immigrants, seniors, residents of low-income communities, etc. Historically, our programs have consisted of entrepreneurship classes, training, coaching, and business startup support. Over the past several years of serving underrepresented entrepreneurs in Chattanooga, it has become apparent that for those in the food industry, finding a commercial kitchen that is affordable and accessible is an immense obstacle for most of the entrepreneurs we serve. Due to the immediate community needs that arose due to the COVID-19 pandemic in early 2020, LAUNCH accelerated existing plans to open a kitchen incubator, and started utilizing the kitchen space for a temporary food relief program, the LAUNCH Provisions Project. Through this program, we were able to create a collaborative partnership with local funders, non-profits, small businesses, churches, and individuals to create and deliver over 71,000 meals to food-insecure families over the last year and a half, and provide a small group of food entrepreneurs with food prep space and a reliable income stream. Arguably, the food industry was one of the hardest hit by the impact of the pandemic. Now, after working on the LAUNCH Provisions Project for nearly 2 years and offering limited commercial kitchen space to new and struggling food businesses, we are convinced the Kitchen Incubator of Chattanooga can provide a consistent, affordable place for many of Chattanooga’s up and coming food entrepreneurs as they navigate the long-term economic recovery from the pandemic. Our vision for the space goes well beyond COVID-19; the goal is to build a self-sustaining program that can accommodate 30+ entrepreneurs at a time offering an array of services for the resident entrepreneurs as well as community-wide programs such as youth culinary courses, nutritional classes and a food truck park. In addition, we would like to provide a space where experimentation can continue to happen as food businesses determine how to pivot from the current challenges. We are requesting ARP funding to help cover the development and pilot of this program, as well as a portion of the renovation costs necessary for operation. The Kitchen Incubator of Chattanooga (KIC) will be more than a commercial kitchen; we will offer subsidized rent, programming, and support, specifically targeting underrepresented entrepreneurs - especially entrepreneurs of color. LAUNCH’s core 10-week startup program, which targets these same demographics, will offer the perfect pipeline to identify food businesses ready for the next step and direct them to the KIC. In order to provide quality programs, we will need to invest time and resources into researching and creating quality curriculum. We have already conducted a Food Incubator study of six similar incubators across the country, and have gathered information on best practices and common pitfalls to avoid. As a result of this research, we have decided to create a 6-week food-centric program that follows LAUNCH’s existing 10-week business startup class. We will create content and deliverables for each week-long topic in partnership with local businesses and experts. The six week program will include interactive instruction on the topics of: “Business Plan Development” in partnership with the Tennessee Small Business Development Center; “Food Safety and Certifications” in partnership with the Hamilton County Health Department; “Branding and Marketing” in partnership with Creative Brands Marketing and Good Team Marketing; “Financial Planning for Food Businesses” in partnership with local banks (such as our existing banking partners Simply Bank, Pinnacle, First Bank, Truist, Regions, & TVFCU); “Food Costing” in partnership with Gordon Food Service; and “Menu Planning” in partnership with local food businesses. In addition to the 6-week class, we will provide commissary services for food trucks, which are required by the Health Department for legal operation. We will provide parking space, wastewater empty and refill, and power hookup services for food trucks. Catering, bakery, and food prep businesses will have access to the commercial kitchen, and will be provided with services including Food Distributor access, which allows delivery, payment terms and discounts. After completion of renovations, the KIC will be able to accommodate at least 30 food entrepreneurs, and every member will have access to the coaching, networking opportunities, and other support offered by LAUNCH staff and our partners on-site. In order for this program to be successful, several renovations are required to increase our capacity. The renovations will include creating 5 additional rooms that meet the requirements of the Department of Agriculture that can be used for businesses creating dry goods/packaged foods for resale. We currently only have one room that fits the requirements, and are already seeing a huge demand for this type of space. While the KIC currently has 8 cooking stations, in addition to bakery space, we are limited in the number of caterers/bakers we can accommodate due to extremely limited cooler and freezer space. The KIC is in desperate need of additional walk-in coolers and freezers in order to fully utilize the capacity of the kitchen. Renovations will also include the addition of a commercial dishwashing machine, sterile sink installation in each room, 2 double-stack ovens, and security fencing for the food truck alley and vehicle storage. With these renovations and program development, LAUNCH will be able to provide a robust, competitive commercial kitchen space and business startup programming for food businesses that will jumpstart new businesses, create new jobs, and provide a stabilizing economic boost that will contribute toward long-term economic recovery and growth. |
| Please explain how your project meets the requirements of the American Rescue Plan | LAUNCH’s project directly contributes toward the goals outlined in the American Rescue Plan in the following ways: Promoting long-term, equitable economic recovery: The American Rescue Plan was designed to mitigate the long-term negative effects of the COVID-19 pandemic, particularly with the intention to lay the foundation for a strong, equitable economic recovery. LAUNCH has already been working toward this goal, and will continue to provide innovative programs that allow us to respond to the negative economic impacts of the COVID public health emergency and many of its long-term effects. In this case, ARP funds will be used to increase our capacity at the Kitchen Incubator of Chattanooga, help us research and develop curriculum for food-industry business support, and pilot this program for one year. These activities will contribute toward significant economic recovery for the businesses we serve, and create much-needed jobs in the community. With ARP funds, LAUNCH will work toward economic stabilization, focusing on providing hands-on training, coaching, and other support to some of the most impacted demographics (low-income and people of color) and industries (food). Before COVID, 32% of small businesses in the US were profitable and growing. By the end of 2020, the number of profitable businesses plummeted to only 12%. The ARP also takes notice of certain industries that have been heavily impacted by the pandemic. The restaurant and catering industries are among those that have faced some of the greatest challenges during the public health crisis. In early 2020, Hamilton County put restrictions in place for restaurants and venues which restricted or shuttered many restaurants in the area, placing great economic strain on this industry. Because of the closure of venues and cancellation or postponement events, the catering industry also greatly suffered. It is estimated that nationally, restaurant industry revenue in 2020 was $240 Billion below the forecast for the year. Chattanooga restaurants were not exempt from this. Many restaurants and catering businesses suffered large losses, and many were forced to close permanently. This is especially true of black and brown-owned businesses that did not have large reserves or any kind of financial safety net. LAUNCH’s program promotes economic growth by helping new businesses start, and providing an array of resources that will increase the success and survival of existing food businesses. Creating opportunity for populations most affected by the public health emergency - specifically people of color: One of the main goals of the ARP is economic stabilization, especially for those populations most affected - specifically workers of color, residents of low-income communities, and those with lower educational attainment. LAUNCH is working to serve these exact communities through small business development training and industry-specific support through the Kitchen Incubator of Chattanooga. We recognize that while the pandemic created negative impacts for nearly everyone, some demographics faced harsher outcomes than others. In Chattanooga, where a large income and opportunity gap already exists, the pandemic only increased disparities between high and low income families, and between white households and households of color. In fact, within Hamilton County (pre-pandemic), the household earnings racial gap was 30 percent higher than the country’s as a whole. While the median household income for White families in Hamilton County is $56,000, Black families’ median household income is a mere $28,000. While there is not yet local research available, nationally, the pandemic has already widened the income inequality gap. According to the US Chamber of Commerce, minority-owned businesses have been disproportionately affected by the COVID-19 crisis. Black-owned businesses decreased by 41% as a result of the pandemic, hispanic-owned businesses declined by 35% and female-owned businesses declined by 25%. These businesses often have underlying or historical factors that make it more difficult to maintain the cash flow or obtain a safety net to weather a crisis of this magnitude. The businesses LAUNCH serves are no exception, and have faced many obstacles during the last 2 years. According to the PEW Research Center, people of color and women are the populations most impacted by the COVID-induced economic downturn, with women having a significantly higher unemployment rate than men and being more likely to own COVID-affected businesses, i.e. hospitality, healthcare, food. The research also shows that Hispanic and Black Americans have much higher percentages of wage loss due to the virus than their White counterparts. At the same time, the research states that approximately 73% of Black and 70% of Hispanic families do not have (and have no way to borrow) emergency funds to cover even 3 months of expenses. We cannot afford for this trend to continue. A history of redlining and housing discrimination has made generational wealth building nearly nonexistent in primarily Black communities in our city. This, coupled with systemic racism and the reality that there is an enormous income disparity, contributes to an economy where business ownership is more difficult and less accessible for BIPOC individuals. Although research has shown that home ownership and business ownership are the two greatest long-term wealth-building strategies, minority populations lag far behind their white counterparts in these areas. While the percentages are slowly improving, only 24% of businesses are owned by non-white individuals in Tennessee. We believe that strategic small business development is the key to providing opportunity to those who have not only been marginalized for generations, but are being economically devastated by the current pandemic. While unemployment continues to soar and there are few new job opportunities, creating innovative microbusinesses are a viable way to generate income and stay afloat. Because of this, we have doubled down on our commitment to starting, strengthening, and supporting local, small businesses owned and operated by underrepresented entrepreneurs. Currently, 76% of the businesses LAUNCH supports are non-white owned (69% Black, 6% Hispanic, 1% Other), and 65% are women-owned. Approximately 65% of participants are LMI (low to moderate income). 91% of LAUNCH-supported businesses are owned by underrepresented entrepreneurs (either women or minorities). |
| Where would your project take place? | This project will take place at the Kitchen Incubator of Chattanooga - 5704 Marlin Rd. Chattanooga, TN |
| How much will your project cost in total? | 700000 |
| Do you have any matching funding sources from other local governments, private entities, non-profits, or philanthropic entities for your project? | Yes |
| Please describe the source and list amounts of any other funding. | Lyndhurst Foundation - $65,000 Community Foundation of Greater Chattanooga - $15,000 LAUNCH EIDL Loan - $80,000 Simply Bank - $5,000 Hamilton County - Still working toward county funding In 2020, the following organizations funded the provisional use of the KIC: Urban Story Ventures - $45,000 in-kind donation - free rent for 9 months. Footprint Foundation - $125,000 CFGC - 45,000 |
| What portion of the project are you asking the city to fund? | LAUNCH is requesting $450,000 of ARP funds, or approximately 64% of the project total. This includes: $50,000 for Program Research and Development -Develop curriculum $150,000 to establish Year 1 Pilot Program and lay the groundwork for future cohorts -6-week Food Business Class -Commissary services -Food Truck services -Wastewater services -Portion of lease cost -Food credit for participating businesses -Business Coaching & Support $250,000 for renovations and equipment -5 additional Department of Agriculture/Dry Goods rooms that meet the state requirements, including 3-compartment sinks -Patio and outdoor seating area for food pop-ups -Walk in cooler and freezer -Commercial dishwasher -Sterile sink installation in each room -2 Double-stack ovens -Security fencing for food truck alley -Mixers, Food Processors, Food Warmers |
| If funded, when would your project start? | January 1, 2022 |
| How long would your project take to complete? | 12 months |
| What milestones would you use to measure your project’s progress? | In order to measure progress, we will create measurable, achievable goals for each quarter. By March 2022, we hope to have renovations completed. By the end of April 2022, we will host the KIC grand opening. By June 2022, we plan to be at full capacity (30+) entrepreneurs. By July 2022, we will finish the curriculum for our 6-week Food Business Class. In September 2022 we will begin the pilot of the new class. In November 2022 the first cohort of the Food Business Class will graduate. In addition to these measures, we will be conducting studies through member surveys and focus groups to determine the success of the pilot program and renovations. |
| How would you ensure accountability and transparency throughout the project lifecycle? | Due to the extremely collaborative nature of this program, there exists a level of built-in transparency. As advocates for underrepresented entrepreneurs, we believe that economic equity is built when all populations have access to all areas of the community and ecosystem. For this reason, we pull in as many partners as possible to help us teach classes, for entrepreneur networking opportunities, business referrals for the members’ businesses, and for further business support. LAUNCH understands the value of collaboration and continues to believe that success comes from working with a multitude of partners, maximizing their strengths for the sake of our entrepreneurs. We thrive not in a spirit of competition, but truly a spirit of cooperation. Over the past 2 years, we have partnered with many organizations and individuals to open and begin operating our food relief programs at the KIC. These include the Benwood Foundation, Community Foundation of Greater Chattanooga, Urban Story Venture, ReLife Strategies, We Over Me, Tennessee Small Business Development Center, The Bethlehem Center, Hope for the Inner City, Widows Harvest, Redemption Church, Temple of Faith, New City Fellowship, Holy Temple Church of God in Christ, Clinica Medicos, Young Ladies of Power, Metro Tabernacle, and many individuals. We also plan to further promote transparency through regular communication with project partners and funding partners. We will implement an open-door policy, and offer access and information to any interested party. We will rely on accountability from our partners, and plan to have a third party (TSBDC) help us create a budget and financial forecasting. We will work with our accountant to create and make available regular financial reports, and will publish frequent updates on the renovations and pilot program. Additionally, the Board of Directors of LAUNCH will ensure that all actions, and fundraising is above board, and will require frequent reporting of costs and program progress. We will collect multiple quotes for the renovations, and do everything possible to ensure that we are being good stewards of all funds raised for this project. |
| If successful, how would your project benefit the community? | This project has the potential to greatly impact the community by helping promote economic equity, growing businesses, and creating jobs. As the first non-profit kitchen incubator in the area, Kitchen Incubator of Chattanooga (KIC) has enormous potential to strengthen food-related businesses with the many resources it provides, and to allow experimentation for new food concepts. Most of all, the KIC will remove obstacles for new and existing food businesses, allowing entrepreneurs and our community to thrive. The pandemic has taken its toll on us all, but few industries have been hit harder than the food industry. Our community is in danger of losing many of its locally-owned food businesses and the KIC can provide a valuable resource to prevent that, as well as to pave the way for new food concepts to begin. Creating a kitchen space that fits within our local ecosystem for under-resourced entrepreneurs will help create a collaborative community, as well as real business opportunities, allowing these businesses who become members to grow and thrive. The KIC will provide a critical piece of infrastructure for underserved entrepreneurs to develop food based business concepts with the ultimate goal of giving community members the tools to shrink the inequitable wealth gap and create generational wealth. Historically, LAUNCH-supported businesses have a survival rate of 79%, which is 4 times the traditional survival rate for African American owned businesses in the U.S. The total estimated annual sales for the businesses in our current Chattanooga network is $13,205,000. The lifetime economic impact (estimated over 25 years) for LAUNCH CHA businesses is $285,923,885. These numbers can and will grow upon successful implementation of this project. A recent survey of LAUNCH graduates in the food industry (over 20% of our entrepreneurs), shows that the single largest barrier in starting a successful food business in our community is the lack of production space. Without it, the business owner is left with two options: stop growing or take on the huge financial burden of renting a space. In addition, we found: 54% of the respondents are currently utilizing a residential kitchen 77% reported the need to access commercial kitchen space in the next 12 months 69% anticipated needing dry storage space 46% reported they would need refrigerated storage facilities Desired “soft skills” programs: 91% financial management 75% networks for distribution channels 75% understanding food pricing 50% certifications This data makes it clear that the KIC’s anticipated programming addresses the greatest needs among food entrepreneurs and creates a platform upon which they can build stabilizing, successful businesses. However, our vision for Chattanooga extends well beyond strong businesses. We believe the key to a stronger community comes through holistic and multi-generational change. One of the biggest challenges facing many of the entrepreneurs we work with is the lack of access to the larger business community of Chattanooga. Not only do we provide kitchen space and help businesses launch - we help open doors, make connections, and provide opportunities. To date, 40% of businesses started through LAUNCH report increased income within the first 3 years, allowing owners to build savings, pay off debt, meet monthly expenses, and reduce stress regarding finances, all of which have the potential to impact individuals, families, and the entire community for generations to come. |
| How will you attract community buy-in for your project? | Fortunately, LAUNCH has already garnered support and interest for this project from many community stakeholders. Due to the unique nature of the program and the great need for the services provided, we have already secured some funding and have a waitlist of entrepreneurs that are eager to become members of the KIC once our capacity is increased. We are already hosting tours and fielding calls and inquiries from interested parties, and are already deep in the process of creating a robust network of partners to help us implement the program. It is clear that this program is in great demand, and that community buy-in already exists. Now, our main obstacle is securing the funding to make it a reality. |
| Name | Josh Brown - TSBDC |
| Contact Information | jbrown@tsbdc.org |
| Name | Jimmy White - Urban Story Venture |
| Contact Information | jimmy.white@urbanstoryventures.com |
| Name | Lisa Pinckney- Footprint Foundation |
| Contact Information | lisa@footprintfoundation.org |
| Name | Macon Toledano- Lyndhurst Foundation |
| Contact Information | mtoledano@lyndhurstfoundation.org |
| Is there anything else you would like us to know about your project? | The KIC is a very unique space in our city that will directly meet an existing need for minority food entrepreneurs, allowing those businesses to stabilize, grow and find new sources of revenue in an industry that has been hard hit. Thank you for considering this request to grow LAUNCH’s impact in Chattanooga. |