Black-owned businesses were hit hard, as pandemic-induced loss of revenue impacted their ability to pay important expenses, including payroll.
Notoriously, the Small Business Administration’s (SBA) Paycheck Protection Program (PPP) disappointed many as early funds were swallowed up by more well-connected establishments. Now with $66 BILLION still up for grabs, what is the program doing to right this wrong?
Black businesses are getting some much needed extra attention as round three funds become available. Black Enterprise reports that distressed owners can pursue funds through the PPP Extension Act of 2021. The application deadline will be extended from March 31 until May 31, and the act also gives the SBA an extra 30 days – until June 30 – to process the applications.
The extended opportunity to apply is good news for businesses who have persevered in spite of the pandemic’s effect on earnings as well as systemic barriers to accessing funds in the first two rounds of PPP loan payouts.
In prior rounds, loan requirements – such as prior established relationships with a mainstream bank – were viewed as biased. This meant that companies with personal connections, not the ones that needed it most, received funding first.
Advocates, financial institutions, and political representatives are rallying behind Black entrepreneurs who have spoken out about the unfair advantages afforded white business owners throughout the process.
Yet again, we refuse to be left out of the process to receive financial help from our government!