A new report showed New York City small businesses in communities of color are recovering more slowly post-pandemic.
The Association for Neighborhood and Housing Development survey found businesses run by people of color are more likely to close in the next year, and immigrant businesses are more likely to relocate in the same time frame. The pandemic is to blame for some of the problems, as are increasing rents and other economic factors.
Lucy Block, senior research and data associate at the Association for Neighborhood and Housing Development, said lacking a lease costs businesses a chance to get necessary aid.
“Without leases, they weren’t able to access PPP loans,” Block pointed out. “There are also major gaps in information that’s available when these merchants whom don’t speak English as their first language are not able to negotiate their lease terms.”
Around 88% of minority business owners were less likely to have a lease than their white counterparts. While paycheck protection program loans provided help for many, a Liberty Street Economics survey reported Black-owned businesses were almost 26% less likely to receive such loans.
Block argued merchants organizing at the city and state level could help enact changes to keep their businesses open.
Proposed legislation could help businesses with unstable rent prices. The New York City Small Business Rent Stabilization Act would have put a commercial rent control system in place. It would also develop a commercial rent guidelines board. Block contended laws can help strengthen current commercial tenant legislation.
“We have laws against the harassment of commercial tenants, but those laws are not sufficient because these merchants are still reporting that they’re facing harassment,” Block observed. “They need more legal resources. You know, those anti-harassment laws need to have more teeth.”
She added people need to let go of the notion businesses are alone in their failures. Instead, Block stressed small businesses are part of communities, and are losing spaces to chain stores like CVS, Target, and Duane Reede.
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High-demand products are usually big targets for scammers, and weight-loss drug Ozempic is no exception.
Scams across the U.S. are being reported with promises of quick access to the drug. The scam offers people searching online for Ozempic a significantly lower price than at a pharmacy. Ads, websites, and social media posts are offering it without a prescription. All people have to do is pay with a digital wallet app, such as CashApp or Zelle.
Kristen Johnson, Better Business Bureau of Connecticut communications director, said these are all red flags that it’s a scam. But given the lengths scammers are going to, they can be a bit harder to recognize.
“One consumer reported actually having a tele-consult with a supposed doctor. And this just sort of legitimized the process, made it seem like it was a real pharmaceutical company. But after he placed the order, he never received the drug,” Johnson explained.
She added when that consumer tried to call customer service, there were only automated responses, nothing more. Johnson noted this can prove detrimental to people, who could lose hundreds of dollars to these scams, and said anyone who has been scammed should report it to the Better Business Bureau’s Scam Tracker immediately.
Other things people should be on the lookout for include counterfeit products. The U.S. Food and Drug Administration finds fake Ozempic has shown up in the country’s drug supply chain.
Johnson added that scammers often strike when a person is most vulnerable.
“Someone in this position that has been looking, that has been trying everything, and nothing’s worked for them in their weight-loss journey may be more susceptible to this type of scam,” she continued.
Ozempic manufacturer Novo Nordisk announced shortages of the drug and could take years to catch up. For now, the limited supply is being given to people for whom the drug is already prescribed.
Johnson worries scammers will use all that time to keep taking advantage of people looking for Ozempic.
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The movement to cap insulin prices for diabetes patients grew larger in the United States this week. Consumer advocates in North Dakota say the news is welcome as state and federal policies evolve to limit skyrocketing costs for the drug.
On Monday, Sanofi became the latest manufacturer to implement insulin price cuts, capping out-of-pocket expenses at $35 a month. That mirrors a federal change adopted in 2022 for Medicare enrollees.
Josh Askvig, AARP North Dakota state director, said mounting pressure from grassroots efforts is sparking change.
“It’s clear that consumers have said ‘enough,’ and there’s been work on the advocacy front, including here in North Dakota, to say we’re not going to do this anymore,” he said.
AARP was one of several groups to push a recent change in North Dakota law that caps insulin prices for state workers.
For its part, Sanofi said the voluntary step to reduce costs adds to other low-price approaches that have been weighed down by structural issues in the health-care system. However, analysts say manufacturers face growing competition from nonprofit ventures and other states pursuing their own insulin production.
Other federal policies kick in this year, requiring drug companies to pay a rebate to the government if their prices rise faster than inflation. As for the outlook in North Dakota, Askvig said more needs to be done.
“We now know Medicare is going to start negotiating prices,” he said, “so is there an opportunity to reference Medicare-negotiated prices for state pricing in North Dakota?”
He said that’s one of several possibilities to explore when the North Dakota Legislature reconvenes in early 2025.
When it comes to the insulin cost burden, Kaiser Family Foundation reported in 2022 that one in 20 customers – whose costs exceed private insurance caps – paid more than $150 per month to access the medication. Some drug companies have defended higher prices, saying they are the result of research and advances in technology.
Disclosure: AARP North Dakota contributes to our fund for reporting on Civic Engagement, Community Issues and Volunteering, Health Issues, Senior Issues. If you would like to help support news in the public interest, click here.
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A new survey of the nation’s small business owners showed a major challenge to successful operations is trying to provide health care for their employees.
The survey by the group Small Business for America’s Future polled more than 1,000 small business owners, including 110 in Texas.
Dr. Erika Gonzalez, co-chair of the group, reported 74% of respondents said they were not in a position to offer employees health insurance, which she said puts them at a disadvantage to hire or retain top talent.
“If you’re not able to offer that, a lot of employees are going to pass,” Gonzalez pointed out. “Even if it’s a good opportunity, they’re going to pass on if it means they can get better coverage and security for their families elsewhere.”
The survey revealed a bipartisan concern and consensus about the issue, with a nearly equal representation of Republican, Democratic and independent small business owners. Gonzalez noted respondents supported regulating anticompetitive practices and boosting price transparency in billing in order to bring down the costs.
Recent legislation passed by Texas lawmakers could open up the health care marketplace by eliminating anticompetitive clauses in health insurance contracts.
Gonzalez called it a step in the right direction but argued more is needed.
“They’re also looking at legislation that would help with the facility fees that sometimes are added on by hospitals,” Gonzalez explained. “All of this would reflect back on knowing why they’re paying for what they’re paying and giving them transparency as to the bills that they’re getting.”
She admitted the health care challenge will not be solved overnight, but changes need to be implemented to determine if they improve the overall system in two to three years. The Small Business for America’s Future survey found annual premiums for employer-sponsored family health coverage were nearly $24,000 in 2023.
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