‘It’s big. It’s huge.’ How a new contract for Black-owned business benefits Fresno

In the overall finances of the city of Fresno, with its $1 billion budget, it was not a big deal: A local company received a $224,000 contract for janitorial services at city bus facilities.

But in the campaign to improve prospects for local Black-owned businesses, it was a noteworthy step.

When the City Council on Thursday awarded the janitorial contract to ScrubCan Inc., it chose a locally owned Black business.

It was precisely the kind of action that is needed to better the lives of Black people in Fresno. From improving impoverished west Fresno neighborhoods to rebuilding the Black economy, the war will be won battle by battle, like the cleaning contract.

Hard life

Blacks in Fresno face a tough existence. The website 24/7 Wall Street did an analysis two years ago of the worst cities in America in which to be Black. Fresno was 10th worst, with low household incomes, high unemployment and low home ownership being chief reasons.

Blacks make up 7.6 percent of Fresno’s population of a half million, but 40 percent of them live in poverty, the 24/7 report said.

As of last year, the Census Bureau reported that just 21.6% of Fresno’s population had a bachelor’s degree or higher. Among Blacks, just 18.5% had earned a bachelor’s.

All in the bids

If Fresno is to improve the economic situation of its Black community, it will need to be intentional. Hiring ScrubCan, which is owned by 36-year-old Cory Jackson, met city goals of using a minority-owned company and keeping the contract local.

Jackson’s bid was not the lowest. But he had done previous cleaning work for the city related to the COVID-19 pandemic and earned good scores by the review committee.

The contract is for three years, with two additional years as options. The length of the contract makes the difference, Jackson said.

“It’s that ability to plan and grow and stabilize,” he said. “It gives you have some longevity, instead of a month to month or year contract.

“It’s big. It’s huge.”

Often city bids have been awarded to out-of-town firms that come in lower, but do not have local workers who can invest earnings back into the economy.

Jackson has 21 employees. With the new contract he plans to move some of them from part-time to full-time, and then hire several more.

More than the fact his is a Black-owned business, Jackson said he appreciated the city taking a chance with a young company. His began in 2014.

“Everyone needs a shot, an opportunity. It’s on them if they perform, as long as you are giving a new guy a chance to compete with big guys,” said Jackson, who played football for Bullard High School.

New budget

One of the main ways the city shows its priorities is in the budget. Unfortunately, the next budget will bear the impact of the COVID-19 pandemic. Mayor Lee Brand said a $13 million deficit must be dealt with, the result of lower tax revenues from businesses being disrupted.

When it comes to initiatives to help Black businesses, Brand said he will look to the council for ideas.

There will need to be at least some. For too long, the city has ignored the hardships of west Fresno. Neighborhoods badly need revitalizing with proper utilities, sidewalks and street lighting. And Black-owned businesses remain too small a part of the local economy.

Brand’s term concludes a year’s end, but he promises to announce a new initiative he will undertake that will involve private companies, education and mentoring opportunities for Fresno’s young people.

It will take an all-hands approach over many years for Fresno’s Black community to thrive. The ScrubCan contract shows one way it can happen.

This story was originally published August 31, 2020 at 5:00 AM.