Small Business Lending Inequities during COVID-19
Nationwide, the COVID-19 crisis has shed light on the ways in which race and racism impact every aspect of our lives – from health and safety, to economic stability. As of October 2020, Black Americans were more likely to die from COVID-19 than those of any other racial group, and were nearly two and a half times more likely to die from the virus than white Americans. However, COVID-19 has negatively impacted Black communities in ways beyond health. A recent nationally representative survey found that there has been a 41% reduction in active Black-owned businesses compared to just 17% of white-owned businesses. The chart below shows the reduction in active businesses by various characteristics of the business owner.
Racial Disparities in Business Loans
The Paycheck Protection Program
LA's Historically Black Neighborhoods
In many ways, COVID-19 is the disease that has revealed our social illnesses of anti-Black racism, precarious employment, sharp racial gaps in wealth and digital access, unaffordable housing, growing homelessness, unresponsive government, and so much more.