While this legal process unfolds, the Center for Responsible Lending (CRL) estimated that as many as 95 percent Black-owned businesses stood no chance of securing a program loan.
“This bill distributes most of the funding again to large banks that prioritized wealthier businesses over small ones,” said Ashley Harrington, Federal Advocacy Director with the Center for Responsible Lending (CRL).
“Businesses of color were locked out of round one of the SBA PPP, and this Congress proposal fails to assure that they will have fair access to the new $60 billion small business appropriation.
“While it is a good and necessary change to include set-asides for community banks to reach more businesses and rural areas, the bill fails to dedicate targeted funds for use by minority depository institutions (MDIs), and community development financial institutions (CDFIs),” added Harrington.
• Dedicate 20 percent of all new funding to businesses of color;
• At least $25 billion in funding for MDIs and CDFIs;
• Provide an alternative PPP loan of up to a $100,000 that can be forgiven and better fits the needs of very small businesses;
• Adjust program rules to serve more small businesses and ensure equity and transparency by requiring all lenders to provide both borrower demographics and loan amounts;
• Expand outreach and enrollment assistant through community development corporations and community-based organizations.
