While the first round of emergency Paycheck Protection Program (PPP) funding saved jobs and businesses, it was also notoriously used as a tool for fraud, and its requirements disadvantaged small Black-owned businesses. Meanwhile, the coronavirus pandemic led to a loss of 41% of Black-owned businesses in the U.S. by August, compared to a loss of 17% of white-owned businesses, according to an analysis by the Federal Reserve Bank of New York.
With the second round of PPP funding in full swing, some banks have stepped up to make the funding more accessible, especially for businesses that did not receive any funding the first time around. M&T Bank (one of only four Fortune 500 companies with an African American CEO), for example, opened PPP applications to prospects, or businesses who did not have an existing relationship with the bank, one of the previous barriers for underrepresented small businesses.
But changes on the federal policy level were needed, and we’re starting to see that happen, as the Biden administration has announced five PPP reforms intended to prioritize and promote equitable access to relief.
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