Opinion: Equity Under Attack by Amherst Town Government #3: A Request For Inclusive ARPA Funds Distribution

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Members of the Black Business Association of Amherst Area along with local residents met with Congressman Jim McGovern on July 6, 2023 to discuss local distribution of ARPA funds,. Photo: Black Business Association of Amherst Area

By Allegra Clark, Debora Ferreira, Pat Ononibaku, Darius Cage, Russ Vernon-Jones, Brianna Owen, Ellisha Walker, and Tashina Bowen

In response to the impact of COVID-19 pandemic, the American Rescue Plan Act (ARPA) law passed in 2021 aimed to provide economic recovery to states, cities, towns, businesses, and individuals. A portion of the funds were reserved for grants for businesses affected by the pandemic, investments for workforce development and jobs creation, and direct cash assistance to vulnerable populations to pay for expenses such as housing, food, utilities, medical, childcare, and transportation. Unfortunately, in the Town of Amherst, the marginalized population most in need of financial support continued to struggle while economic disparities widened. BIPOC led organizations hoping to uplift their members with assistnace from ARPA found themselves excluded from the distribution of ARPA funds that they are eligible to receive.

In 2021, the Town of Amherst received $11.9 million ARPA funds. The Town Manager and Town Council failed to engage with businesses, community leaders and residents from marginalized groups prior to deciding how to distribute the ARPA funds. They relied on traditional assumptions to entrust ARPA funds to white-led organizations in our town, leading to a disconnect between needs and solutions. The Town Manager distributed the ARPA funds unevenly, favoring organizations with easy access to him and close ties to white town councilors over others, leading to disparities in local responses and the recovery effort. The lack of transparency and accountability left some stakeholders feeling excluded and skeptical about how funds were being used and outcomes of funded projects.

In 2022 the Black Business Association of Amherst Area (BBAAA) leadership exposed the corruption and lack of transparency in the implementation of ARPA funds distribution particularly in relation to racial equity. Here is an example: the DRAKE night club owned by a wealthy white entity received $300,000 compared to no funding for Hazel’s night club, a Black owned business, despite Hazel’s having demonstrated significant needs. Racism and lack of support contributed to the closure of Hazel’s night club while DRAKE night club was falsely promoted as the “economic engine” for the town.

To date only two Start-Up Black owned businesses received funds in 2022 totaling less than $15,000. The two Black business owners are tenants of the two most influential commercial landlords in town. Meanwhile none of the existing Black-owned businesses received ARPA funds. The Town Council’s inaction on this issue perpetuates a cycle of oppression. The Town Manager plans to transfer the remaining ARPA funds to the Town Cash Reserve which shows his lack of empathy and disregard to vulnerable business owners and residents. We urge the Town Manager and Town Council to do the right thing. There is still time before the end of this year for the Town Manager to distribute the remaining ARPA funds to BBAAA and other marginalized groups and residents.

Read More: Black Business Association Proposes Alternate Plan For ARPA Funds (Amherst Indy)

Allegra Clark and Debora Ferreira are Co-chairs of Amherst’s Community Safety & Social Justice Committee

Pat Ononibaku, Darius Cage, Russ Vernon-Jones, Brianna Owen,Ellisha Walker, Tashina Bowen and Debora Ferreira were members of Amherst’s Community Safety Working Group. Owen and Walker were co-chairs of that working group.


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