As we continue to see flaws in the Paycheck Protection Program, it looks like small businesses owned by minorities and women are having the most difficult time securing the federal coronavirus relief according to CBS News.
The article claims that they either didn’t qualify or the funds had already been used by the time they finally get through the application process. “Roughly 95% of Black-owned businesses, 91% of Native Hawaiian, or Pacific Islander-owned businesses, and 75% of Asian-owned businesses stand close o no chance of receiving a PPP loan through a mainstream bank or credit union.”
Businesses owned by people of color are less likely to have commercial banking relationships, and this causes a major issue because the forgivable loan program are only issuing loans to existing clients to speed up the approval process. Some banks have only prioritized larger applications, which has kept small business waiting.
The research shows that “female-owned businesses, or businesses equally owned by a man and woman, face the highest degree of immediate and long term risk amid the coronavirus crisis, because they occupy industries in which social distancing isn’t possible.”
Have you tried to apply for the PPP and had issues receiving a loan? Let us know your story on social media.
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