Predominantly white communities in Maryland received approximately 20% more loans and money per loan under the Paycheck Protection Program compared to predominantly Black communities, according to data from the Small Business Administration (SBA) analyzed by Capital News Service.
The Paycheck Protection Program was a derivative of the approximately $2 trillion Coronavirus Aid, Relief, and Economic Act (CARES) passed to provide economic relief in response to the coronavirus pandemic. The law provided a provision to help small businesses continue to pay their employees, as well as fund other essential business expenses.
From a dataset of approximately 60,000 loans issued to Maryland businesses, each less than $150,000, the average loan amount in a predominantly white zip code was $36,083 while the average for a predominantly Black zip code was $29,080. The $7,003 difference means that Black communities are receiving about 21.5% less money in loans.
Click here to read the rest of the article written by Amina Lampkin over at Maryland Matters
