House Democratic Committee Leaders Call on Treasury and SBA to Focus Remaining PPP Relief on Small, Minority-Owned Businesses

Jul 28, 2020
Press Release
According to Treasury’s data, nearly 30 percent of all small businesses are minority-owned yet only 12 percent received PPP loans
WASHINGTON, DC – House Ways and Means Committee Chairman Richard E. Neal (D-MA), House Financial Services Committee Chairwoman Maxine Waters (D-CA), and House Small Business Committee Chairwoman Nydia M. Velázquez (D-NY) strongly urged the Department of the Treasury (Treasury) and the Small Business Administration (SBA) to use all means necessary to ensure the remaining Paycheck Protection Program (PPP) loan funds are targeted to minority-owned small businesses that have so far been disproportionately excluded from the program. The program was authorized under the Coronavirus Aid, Relief, and Economic Security (CARES) Act to provide financial assistance to small businesses struggling to weather the coronavirus pandemic; however, recently-released data show several millionaires, large franchises, and large law firms secured loans in excess of $150,000.
 
“The value of PPP loans to small businesses in our country cannot be overstated and for many minority-owned businesses these loans are critical to ensuring their survival,” the Chairs explained. “Yet, only 12 percent of African-American and Latino business leaders report that they received the loan that they applied for and sadly one-half of these business owners expect to permanently close soon. This is tragic and indeed was preventable, but this state of affairs stems from the Administration’s mismanagement of the program. The PPP loans were set up by the Small Business Administration (SBA) on a first-come, first-served basis without any attempt to ensure equitable participation in the application and approval process or diversity in the lending or community institutions seeking loans.”
 
The leaders requested that “SBA and the Department of the Treasury undertake a full-scale outreach program targeting small, minority-owned businesses who were left behind in the early rounds of the PPP. Actions must be undertaken to make sure these underserved businesses are aware of the availability of these loans, to provide assistance and guidance to the lending institutions who serve these businesses, and to better capture data on inclusion and equity in the PPP loans that are approved.”
 
Read the full letter HERE.
 
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