DCist, September 17, 2020: Businesses In D.C.’s Majority Black Neighborhoods Waited 10 Days Longer For Federal Aid
The analysis by The Brookings Institution found that small businesses in majority Black ZIP codes waited on average 37 days to receive federal funding through the Paycheck Protection Program — 10 days longer than businesses in majority white ZIP codes in the District.
“The 10 days delay really matters because business in those majority Black neighborhoods also tend to have fewer cash buffer days, meaning they are more cash-constrained when they’re not getting revenues,” said Sifan Liu, the Brookings analyst who authored the report, in an interview with DCist/WAMU. She cited research by the JPMorgan Chase Institute that found in majority-Black and majority-Latino neighborhoods, nearly all businesses didn’t have enough cash reserves to get by for more than three weeks. In contrast, the research found only about one-third of businesses in majority white neighborhoods to be similarly cash-strapped.
