Los Angeles Times: Black-owned businesses face a system set up against them. COVID-19 makes it worse [Los Angeles Times]

Los Angeles Times, June 20, 2020: Black-owned businesses face a system set up against them. COVID-19 makes it worse

It takes a lot to turn an idea into a small business: A storefront or some office space. Equipment, inventory, personnel, not to mention marketing, permitting and insurance.

All that costs money. Without funding, those businesses can’t launch or else quickly fail. And without cash to smooth over rough patches, a single emergency can destroy a company. That’s why it can be so devastating to be turned down for a business loan — which disproportionately happens to Black-owned businesses.

Such businesses face a number of hurdles.

Print Friendly, PDF & Email

Redlining and Neighborhood Health

Before the pandemic devastated minority communities, banks and government officials starved them of capital.

Lower-income and minority neighborhoods that were intentionally cut off from lending and investment decades ago today suffer not only from reduced wealth and greater poverty, but from lower life expectancy and higher prevalence of chronic diseases that are risk factors for poor outcomes from COVID-19, a new study shows.

The new study, from the National Community Reinvestment Coalition (NCRC) with researchers from the University of Wisconsin–Milwaukee Joseph J. Zilber School of Public Health and the University of Richmond’s Digital Scholarship Lab, compared 1930’s maps of government-sanctioned lending discrimination zones with current census and public health data.

Table of Content

  • Executive Summary
  • Introduction
  • Redlining, the HOLC Maps and Segregation
  • Segregation, Public Health and COVID-19
  • Methods
  • Results
  • Discussion
  • Conclusion and Policy Recommendations
  • Citations
  • Appendix

Complete the form to download the full report: