The new Paycheck Protection Program (PPP) portal opened January 11, 2021 for new and certain existing PPP borrowers. The new rules from the Small Business Administration (SBA) on both PPP and the targeted Economic Injury Disaster Grant (EIDL) aim to correct some of the lending discrimination uncovered in the first round.
The package represents a down payment for a just recovery that will prevent evictions, protect small businesses and provide additional direct payments to millions of families facing continued financial distress as a result of this global pandemic and economic crisis. The package also provides additional funding for Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs), lenders who can put capital to work in low-income communities and communities of color when and where they need it most.
The government’s flawed COVID relief program underscored the need for equity in small business financing, and for stronger enforcement of fair lending laws.
Lending Discrimination within the Paycheck Protection Program Anneliese Lederer, Director of Fair Lending Sara Oros, Program Coordinator, Fair Housing/Fair Lending In collaboration with: Dr. Sterling Bone, Professor of Marketing, Utah State University Dr. Glenn Christensen, Associate Professor of Marketing, Brigham Young University Dr. Jerome Williams, Distinguished Professor and Prudential Chair in Business, Rutgers University Before …
An NCRC study that used testers who talked directly with banks about loans to help their small businesses stay open during the coronavirus pandemic found that White applicants were treated better than Black applicants
The SBA didn’t require demographic data and most PPP applications didn’t include it.
This week, the Senate passed the Payment Protection Program (PPP) Flexibility Act, already passed by the House in May, sending the bill to the president, who is expected to sign it into law. While the act makes necessary improvements to the PPP, more needs to be done to ensure money is going to minority and women-owned businesses and the smallest small businesses.
Today, the House of Representatives joined the Senate and passed a $484 billion emergency relief bill, including a $321 billion infusion for the Paycheck Protection Program, the small business rescue fund that ran out of money last week.