As a WOC entrepreneur there I feel a level of responsibility to shine some light on (if you haven’t already seen the light for yourself) on some of the very real social disparities that have existed, continue to exist, and are even more prevalent now in the small business world. Regardless of the dollar amounts you are hearing about being “provided” to the small business community, the facts are:
POC & women owned businesses are most at-risk from COVID-19, but may benefit less from policy solutions
Of these businesses in immediate-risk industries, 39% are female-owned, or equally female- and male-owned.
According to lending experts, flaws in the Paycheck Protection Program are hindering small businesses owned by POC and by women from securing federal coronavirus relief.
The Center for Responsible Lending recently stated that based on how the program is structured, there is an estimate that upwards of 90% of businesses owned by women &/or people of color have been, or will likely be, shut out of the Paycheck Protection Program.
In a recent study by Brookings Institute, research showed that the U.S. Small Business Administration-backed loan program favored larger, and mostly white-owned, small businesses.
The same research shows that female-owned businesses, or businesses equally owned by a man and woman, face the highest degree of immediate and long-term risk amid the coronavirus crisis, because they occupy industries in which social distancing isn't possible.
It is so important that we all step up for our small businesses. They are an integral part of our local community. We can do this by supporting small business, putting pressure on our elected officials and by raising awareness in our community.