But a May survey by Color Of Change and UnidosUS suggested that Black and Hispanic business owners were often denied the help, and many feared their firms would not last the year. The SBA did not ask applicants for their demographic information. Rural areas did only slightly better: The PPP reached them in proportion to their share of small employers. ![]() “And these are communities that can’t afford to lose businesses.” “It means that a higher share of businesses in lower-income areas are financially vulnerable and therefore increases the likelihood of business failures in precisely those communities,” said Basu, whose own firm received a PPP loan. That’s hardly priority status, Baltimore economist Anirban Basu said. Instead, the numbers fell just shy of their share of small employers in the U.S., the Public Integrity analysis found. Loans didn’t reach a greater share of businesses in the lowest-income communities, where median household income is about $40,000 or less and recessions hit the hardest. The result: Most PPP loans went to businesses in communities that already had more access to resources, according to a Center for Public Integrity analysis of recently released SBA data. ![]() By the time the agency sent a memo to that effect in mid-June, nearly all the loans had been issued. But the SBA’s inspector general warned in early May that it could find no evidence the SBA told lenders to do that. Small Business Administration to ensure that PPP loans prioritized small businesses in “underserved” markets, a term that includes low-income communities, rural areas and businesses owned by people of color, women and veterans.
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