WASHINGTON, D.C. – Thursday’s House Financial Services Subcommittee hearing revealed that only 143 Black-owned firms received a Paycheck Protection Program (PPP) loan over 150 thousand dollars, showing just how badly the Trump administration has failed to provide adequate financial assistance to businesses in communities of color struggling during the COVID-19 pandemic. Instead of helping mom-and-pop shops and small local operators, millions of dollars from the Small Business Administration’s (SBA) PPP were doled out to wealthy and well-connected publicly-traded companies. In fact, one survey looking at applications in the first part of May found just 12% of Black and Latinx business owners received the SBA relief they had applied for. Research from the University of California-Santa Cruz found 40% of Black-owned businesses are not expected to survive the coronavirus crisis.
The PPP has been mismanaged and poorly regulated from the start allowing big businesses to exploit the program. By design, it has failed to support small businesses in communities of color, who are disproportionately impacted by this crisis. Rather than funnel millions to wealthy corporations, now is the time for the administration to ensure resources make it to underserved communities across the country.”
Kyle Herrig, president of Accountable.US
BACKGROUND: In recent weeks, government watchdog Accountable.US renewed its calls on Congress to turn the page on the SBA’s mismanaged PPP program and ensure a fairer and more transparent system for getting relief to the small businesses that need it most.
For more information, see Accountable.US’s…
- Fact sheet on how the Trump administration failed minority-owned businesses;
- Memo outlining key statistics on PPP’s failures along with suggested next steps;
- Op-ed penned by former SBA Deputy Administrator Marie Johns and Accountable.US President Kyle Herrig.