Our world changed in 2020. We have been through the unprecedented. The COVID-19 pandemic has caused economic turbulence across the world, and small businesses were unexpectedly affected. The pandemic revealed financial fragility within the small business community by shining a light on challenges faced by Black-owned small businesses and access to capital.
Historically, Black-owned businesses are more likely to seek, and less likely to receive capital for their business. Nearly three of four Black business owners say investment in Black-owned businesses still trails white- owned businesses (Businesswire). And the state of these businesses has only worsened. The COVID-19 pandemic has had a significant impact on Black-owned businesses’ health. While 58% of Black business owners report their businesses being in trouble, just 27% of white business owners say the same.
As a result, the federal government unveiled the Paycheck Protection Program (PPP) in 2020 to provide small businesses with funds to cover payroll, mortgage, rent and utility expenses. Thanks to the PPP program, 12 of our members were able to deliver a combined >$4.4 Billion in PPP loans to support small businesses that were impacted by the pandemic.
As you follow along, you will read more about the impact that our members have made in their communities, because we are committed to supporting and advocating for the growth of Black communities and Black executives leading Community Development Financial Institutions (CDFIs).