- According to an analysis by The Associated Press, many minority-owned businesses have been waiting for funds until the final weeks of the Paycheck Protection Program.
- “Many of our businesses were turned down in the first and second rounds of funding. This caused fatigue and frustration in applications,” Ron Blackby, president of the U.S. Black Chambers, told AP.
- The Center for Responsible Lending, an advocacy group, says the new $ 900 billion bill to alleviate coronavirus contains $ 284 billion in OPS funds, along with provisions to help businesses in minorities.
- “And a provision for streamlined forgiveness for small loans will prevent a large debt burden from threatening many of the mom-and-pop businesses often owned by black and Latino families,” CRL said.
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According to an analysis by The Associated Press, many minority-owned businesses have been waiting for funds until the final weeks of the Paycheck Protection Program.
The program distributed $ 525 billion in cash from April 3 to August 8. But businesses in mostly white postcodes received most of the relief until the last month, when the ‘pattern turned around’, according to data provided by the AP under Freedom of Information Act.
The AP analysis builds on previous reporting from Vox, PBS News Hour, Inc., and other outlets.
“Many of our businesses were turned down in the first and second rounds of funding. This caused fatigue and frustration in applications,” Ron Blackby, president of the U.S. Black Chambers, told AP.
Another $ 284 billion has been approved by Congress, as part of a $ 900 billion bill. President Donald Trump last Sunday night signed the 5,593-page coronavirus relief bill.
The new bill includes funding given to borrowers who have historically owned more minority businesses than customers, including minority custodians and community development financial institutions.
The Center for Corporate Loans (CRL), an advocacy group, said on December 21: ” A provision for streamlined forgiveness for small loans will prevent a large debt burden many of the mother-and-pop businesses that are often in possessed, threatened. by black and Latino families. ‘
The data based on AP appeared in early December when Congress discussed a new economic stimulus package. The media reports pointed out that conservative organizations, including Project Veritas and Ayn Rand Institute, had acted for PPP funds.
“Black-owned small businesses were widely excluded from gaining access to PPP loans, but the right-wing disorganization organization PV took half a million public funds while calling direct federal aid ‘radical socialism,'” Rep. Alexandria Ocasio-Cortez. posted on Twitter in early December.
In May, CRL officials called on Congress to do more for minority businesses, which support 8.7 million jobs. It is said that although the companies’ annual total payroll amounts to about $ 280 billion, many do not have existing ties with lenders responsible for distributing PPP loans.
“It has strongly favored owners of color, who generally do not have these relationships and access,” CRL said in a statement at the time.