Mother Jones, April 25, 2021, PPP Lending Was Supposed to Help Small Businesses in Kansas City. That’s Not What Happened.
In Kansas City neighborhoods seared by decades of government-imposed racial discrimination, the Paycheck Protection Program’s forgivable loans arrived last year at lower rates than in the rest of the city. East Side areas “redlined” in the 1930s because Black people lived there—a federal decision that effectively blocked investment—received 17% fewer PPP loans than if they’d gotten an amount proportionate to their share of the city’s small employers.
So, what about that single ZIP code, 64108, that sits against the city’s western boundary but was also largely graded D and had a recorded number of Black residents at the time? All but a small piece is west of Troost Avenue, which became the city’s de facto racial dividing line, and it’s had a different trajectory than the East Side—with far easier access to lending, including the PPP.
The National Community Reinvestment Coalition’s Bruce Mitchell, Jason Richardson and Jad Edlebi offered feedback and advice at various stages of the analysis