The New York Times, April 10, 2020: Black-Owned Businesses Could Face Hurdles in Federal Aid Program
Young is among the thousands of small-business owners at risk of being shut out of the government effort, known as the Paycheck Protection Program, because of limits set by lenders grappling with overwhelming demand. These loans, which do not have to be repaid if the money is used for payroll, rent or mortgage expenses, could be a lifeline for struggling businesses — if they can get them.
And for small-business owners like Young, who is black, the hurdles could be much higher. That’s because minority-owned businesses often have weaker banking relationships than their white-owned counterparts — one legacy of the practice of redlining, or refusing to lend to people in communities of color. Research shows that black and Latino business owners are denied loans at higher rates.