- Many minority-owned companies have been waiting for funds until the final weeks of the Paycheck Protection Program, according to an analysis by The Associated Press.
- “Many of our businesses were rejected in the first and second round of financing. This caused application fatigue and frustration,” Ron Busby, president of US Black Chambers, told AP.
- The new $ 900 billion coronavirus relief account includes $ 284 billion in PPP funds, along with provisions to help minority companies obtain loans, said the Center for Responsible Lending, an advocacy group.
- “And a provision for simplified forgiveness for small loans will prevent a large debt burden from further threatening many of the family businesses that are generally owned by black and Latino families,” said CRL.
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Many minority-owned companies have been waiting for funds until the final weeks of the Paycheck Protection Program, according to an analysis by The Associated Press.
The program distributed $ 525 billion in funding from April 3 to August 8. But companies with mostly white postal codes received the lion’s share of the relief until last month, when the “pattern reversed”, according to data that the AP sued under the Freedom of Information Act.
The AP analysis is based on previous reports from Vox, PBS News Hour, Inc. and other media.
“Many of our businesses were rejected in the first and second round of financing. This caused fatigue and frustration in the applications,” Ron Busby, president of US Black Chambers, told AP.
Another $ 284 billion was approved by Congress as part of a $ 900 billion project. President Donald Trump signed the 5,593 page coronavirus relief bill last Sunday night.
The new bill includes financing granted to creditors who have historically had more minority-owned companies as clients, including minority deposit institutions and community development financial institutions.
The Center for Responsible Lending (CRL), an advocacy group, on December 21, said: “A provision for simplified forgiveness for small loans will prevent a large debt burden from further threatening many of the small businesses that tend to belong to black families. and Latin. “
The data that the AP based on its analysis was published in early December, while Congress debated a new economic stimulus package. Then, media reports noted that conservative organizations, including Project Veritas and the Ayn Rand Institute, lined up for PPP funds.
“Small black-owned companies were largely prevented from accessing PPP loans, but the right-wing disinformation organization PV received half a million in public money while condemning direct federal assistance as ‘radical socialism’,” Rep. Alexandria Ocasio-Cortez wrote on Twitter in early December.
In May, CRL officials urged Congress to do more for minority-owned companies, which support 8.7 million jobs. He said that while companies’ total annual payroll is about $ 280 billion, many have no ties to the lenders responsible for distributing PPP loans.
“This strongly disadvantaged black entrepreneurs, who generally do not have these relationships and access,” the CRL said in a statement at the time.