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ORDINANCE AMENDING TITLE II, CHAPTER 10, DEPARTMENT OF HOUSING AND ECONOMIC DEVELOPMENT, OF THE REVISED GENERAL ORDINANCES OF THE CITY OF NEWARK, NEW JERSEY 2000, AS AMENDED AND SUPPLEMENTED, BY CREATING AND ESTABLISHING SECTION 8, AN EMPLOYEE OWNERSHIP LOAN AND LOAN GUARANTEE PROGRAM AND RULES FOR QUALIFYING CERTAIN BUSINESSES AS MINORITY, WOMEN AND VETERAN-OWNED.
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WHEREAS, in Newark, approximately one-in-three residents live below the federal poverty level, which is nearly double the national average of 16%. The primary cause of this poverty is unemployment and joblessness; and
WHEREAS, in 2017, 96% of the people living in poverty in Newark did not have a full-time job, and 69% did not receive any income. As a result, nearly three quarters of Newark's children come from families that cannot afford to pay rent, buy food or afford quality childcare; and
WHEREAS, the median household income in Newark is $30,122.00, as compared to the statewide median income of $90,270.00. Many Newark residents are living in poverty despite income from work. In fact, 69% of Newark residents who are employed earn less than $40,000.00, a year. And in a city where people of color make up a majority of the population (71.6%), they hold a minority of jobs (39.7%). Many businesses have been a part of the fabric of Newark for decades. Yet, of the 136,979 available jobs in the City, only 18% of them are held by local residents. Yet, many of these jobs will disappear; and
WHEREAS, according to the U.S. Census Survey of Business Owners, 60% of businesses were owned by baby boomers in 2007. A 2014 study by Baker Tilly International found that 80% of baby boomer family business owners have yet to complete succession plans. Job loss resulting from the baby boomer succession crisis is likely to be magnified in New Jersey, which is home to many of the nation's wealthiest baby boomers; and
WHEREAS, employee ownership is a mainstream...
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