New Effort to Make Sure Minority-Owned Businesses Get Fair Share of PPP Loans
Photo: CBS Boston
The Paycheck Protection Program (PPP) was established in March 2020 as part of the CARES Act to provide financial assistance to small businesses affected by the COVID-19 pandemic. The program was intended to help businesses keep their employees on payroll and cover their other necessary expenses during the economic downturn. However, a recent report by the Small Business Administration (SBA) found that minority-owned businesses were disproportionately affected by the distribution of PPP loans, adding to their despair.
Data from the Paycheck Protection Program released December 1 and analyzed by the Associated Press show that minority-owned businesses were more likely to apply later in the program after funds had already been depleted. Additionally, minority-owned businesses were less likely to receive the full amount of funding they requested and more likely to receive a lower loan amount. These disparities in PPP funding have only added to the challenges faced by minority-owned businesses during the pandemic and have raised concerns about systemic inequalities in access to financial resources for small businesses.