KCET, February 4, 2022, Resilience and Rebuilding: COVID-19 Recovery in South Los Angeles
PPP loans do appear to have given South L.A. businesses a vital lifeline during the pandemic, but the data reveal there is more work to be done. While 38% of eligible loans made countywide were forgiven, only 29% of loans made to South L.A. businesses were forgiven. Research from NCRC indicates that Black business owners confronted discrimination and difficulties accessing PPP funds. Nationally, Black loan recipients were more likely to access loan funds via an online lender rather than a traditional bank. This may be because South L.A. has just four banks and credit unions per 100,000 residents, giving local businesses considerably fewer resources for access to lending and consultations. Countywide that number is 59 per 100,000. While access to online lenders may have initially increased Black-owned businesses access to vital capital, it also could have hindered their ability to navigate the intricate requirements of the loan forgiveness process.
