Investopidia, March 3, 2021, Small Business Contract Discrimination
Small business contract discrimination refers to the notable disparity in the number of government contracts that go to minority and women-owned businesses when compared to other small businesses.
Government contracts represent a significant source of income for small business. The U.S. government has made it a priority to send federal contracts to small businesses since the second half of the 20th century. And the amount of money spent on government contracts is increasing.
In the Great Recession period, SBA loans to Black businesses dropped from 8% to about 3%, according to a study from the National Community Reinvestment Coalition. Moreover, loans tend to concentrate in middle and upper income areas. Black individuals, who constitute about 12.6% of the U.S. population, own about 2.1% of small businesses. Latinx individuals, who make up 16.9%, own about 5.6% of businesses.