The Detroit News, September 24, Kamala Harris’ Claims on COVID-19 Businesses Loans Not Whole Truth
This claim that only one Black owned business in Michigan received financial support remains unclear because 81% of restaurants in Michigan did not answer the race and ethnicity question for the PPP loan, and 75% of PPP loans did not include a demographic question. Multiple studies have still shown large differences in the treatment of Black-owned businesses on the loan process.
While there is evidence of racial disparities among those receiving PPP loans, the claim by Harris is based on a small portion of data and doesn’t tell the whole story.
Of the 792 Michigan full-service restaurants that received at least $150,000 in loans through the program, only one reported its owners were Black or African American, according to U.S. Small Business Administration data.
But 617 of the full-service restaurants, or 78%, didn’t answer the question about the race or ethnicity of their owners.
In addition, two Michigan fast food and carryout restaurants — a different classification from full-service restaurants — that are Black or African American owned received PPP loans of more than $150,000, according to the federal data. And 26 other Black or African American owned restaurants in Michigan received PPP loans of less than $150,000, according to federal data.