Worcester Business Journal, December 11, Report: Majority of Greater Worcester PPP loans went to wealthy, white neighborhoods
The vast majority of federal Paycheck Protection Program loans in the Worcester metropolitan area went to upper- and middle-income White neighborhoods.
According to geocoded data released by Washington nonprofit National Community Reinvestment Coalition, which focuses its work on fighting discrimination in lending, housing and business, a little over 8,000 PPP loans were given to Worcester area businesses in upper and medium income census tracts where less than 30% of residents are people of color. In turn, on the other end of the spectrum, only seven PPP loans were issued in census tracts considered low-income and where more than 80% of residents are people of color.
The organization compiled local and national data by geocoding the addresses listed on PPP applications, after the U.S. Small Business Administration released detailed data about the $523-billion loan program, which was designed to help small businesses survive an economic crisis brought on by the coronavirus pandemic.
The NCRC findings jibe with WBJ’s own research into PPP lending for businesses own by people of color: of the PPP recipients in Central Massachusetts who identified their race, 84% were white, 8% were Asian, 6% were Hispanic & 2% were Black.