This year, black and African American borrowers obtained more than $ 14 billion in paycheck protection program loans.
In this category, 714,501 loans worth about $ 14.1 billion have been approved as of May 16, according to data from the US Small Business Administration. Asian borrowers took in 148,406 loans valued at $ 7 billion. For American Indians or Alaska Natives, 52,969 loans worth about $ 2.4 billion were taken out.
Among the racial groups listed, whites had by far the largest share with 866,819 loans approved for a total of $ 42 billion. The variance stems from the fact that recent analysis shows that businesses in predominantly white communities have obtained PPP loans at higher rates than communities of color.
The SBA said BLACK COMPANY last July, he was trying to gain a better understanding of which small businesses benefited from PPP loans. The federal agency also said in May that it was not commenting on third-party analysis of its data. The SBA manages the PPP with the US Treasury.
Potential borrowers – including black Americans – were unexpectedly hit hard when funding for the last P3 ran out days before the May 31 application deadline.
The SBA announced earlier this month that it will continue to fund outstanding approved PPP applications, but new eligible applications will only be funded by an amount of $ 9.9 billion earmarked for community financial institutions. There was $ 5 billion left as of May 18.
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Funding collapsed after lawmakers in March extended the deadline from May 31 to May 31. The action came after the PPP reopened in January with $ 284 billion in designated funding. Another $ 7.25 billion was earmarked in March, spurred on by the efforts of the Biden administration.
First launched in April 2020, PPP was initially intended to provide loans to the most needy small businesses facing the COVID-19 pandemic. PPP provides small businesses with forgivable loans to help cover workers’ wages, rent, and other operating costs.
The program, which in total has helped businesses secure more than 11 million loans worth more than $ 788 billion based on the latest data, has faced problems since its launch. Observers said that large companies were recipients of PPP loans the first time, despite having greater capital resources than small companies. They also reported that minority-owned businesses struggled to access PPPs, especially in the early stages.
To date, there has been no official statement on what will happen next with P3s, whether lawmakers will approve additional funds for the program, or whether another round of funding will be established.
For its part, the SBA has launched other programs to help small businesses, many of which are still struggling and trying to stay open amid COVID-19. The SBA’s Restaurant Revitalization Fund began accepting applications in early May. As part of the $ 1.9 trillion stimulus package, $ 28.6 billion has been allocated to the fund. SBA administrator Isabella Casillas Guzman has just announced that qualifying dining establishments have until May 24 to submit applications to the fund.
In April, the SBA announced that it would reopen the grant application portal for closed site operators. The program includes more than $ 16 billion in grants for theater operators, performing arts organizations, museums and cinemas. Live venue promoters, theater producers and talent representatives can also pursue funding.