Black-Owned Businesses Received Less Than 2% Of PPP Loans, White-Owned Got 83%

PPP loans
Just 14 percent of businesses identified race in their PPP loan applications. Of those, Black-owned businesses received 1.9 percent of loans. Whites got 83 percent of loans. Spokehouse Bikes in the Upham’s Corner neighborhood of Boston, June 24, 2020. Many from outside Boston donated to and shopped at the store which was robbed and vandalized. (AP Photo/Charles Krupa)

The full list of Paycheck Protection Program recipients released by the Small Business Administration on Monday shows that of the 14 percent of businesses that chose to identify race in their loan application, Black-owned businesses received 1.9 percent of loans while White-owned businesses received 83 percent.

These loans are expected to turn to grants and as such represent a transfer of wealth from the U.S. Treasury to the recipients. PPP is exacerbating the wealth gap.

Here is a chart showing the breakdown of the recipients by race.

Only 16 percent of loan recipients that reported their gender information identified as female.

Other notable takeaways:

  • Kanye West’s company, “YEEZY LLC”, received a $2-5 million loan
  • Foremost Group that is owned by Elaine Chao, the head of the U.S. Department of Transportation, received $350k-1 million

Comments on the data:

The demographic information was voluntarily supplied by the loan recipients and was absent for most.  

Index Ventures and Bird were listed as recipients but have publicly denied applying for or receiving a PPP loan.

Here is a link to the original U.S. Treasure source.

Here is a link to the census data.

This article was originally published on Thinknum. It is reposted here with the permission of the author, Gregory Ugwi, co-founder and CEO of Thinknum and Read the original.