Congressional lawmakers are being pushed to direct more aid to minority-owned businesses hurt by the coronavirus pandemic.
Business groups and consumer advocates are lobbying Congress to make the money more accessible as part of the next small business rescue package, according to Politico.
Sens. Steve Daines, R-Mont., and Cory Booker, D-N.J., have proposed making $50 billion in grants available to state and local governments for the smallest businesses and nonprofits.
And Sen. Marco Rubio, R-Fla., is looking at a plan to target long-term loans at businesses that make most of their money in low-income areas and set aside $25 billion for those with 10 or less workers.
Politico noted recent economic data and surveys show Black business owners have been disproportionately hurt by the coronavirus recession.
A wave of closures by Black-owned business would have a major impact if left unaddressed, Politico said. Black-owned businesses are more likely to hire Black workers, offering a key source of jobs.
Some advocates maintain that the Paycheck Protection Program did not fully address the overall problem — partly because it was structured to favor borrowers who have ongoing ties to banks, Politico said. And it noted businesses owned by people of color are less likely to have those same ties.
"We got off to a bad start for the underserved communities," said Sen. Ben Cardin, D-Md.
Meanwhile, Facebook said it is committing $200 million to support Black-owned businesses and organizations. The pledge is in addition to a “broader $1.1 billion investment in Black and diverse suppliers and communities" around the country.
Jeffrey Rodack ✉
Jeffrey Rodack, who has nearly a half century in news as a senior editor and city editor for national and local publications, has covered politics for Newsmax for nearly seven years.
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