The number of working African American business owners in the United States plummeted more than 40 percent as the coronavirus shut down much of the economy — a far steeper drop than other racial groups experienced, according to an analysis confirming fears the pandemic would deepen inequalities in the business world.
Closures and social distancing to slow the virus’s spread have taken a disastrous toll across racial groups, with the total number of active business owners dropping 22 percent from February to April, based on granular data from the federal government’s employment surveys that was made available last week.
The Center for Responsible Lending, a nonprofit research and policy group, sounded alarms in April about the Paycheck Protection Program, estimating 95 percent of black-owned businesses and 91 percent of Latino-owned businesses were tiny companies with slim chances of receiving a loan in the initial round.
The Treasury Department has said it is working with the Small Business Administration to prioritize minority-owned businesses and the community financial institutions that often support them, while some state and local governments and philanthropists have created programs targeted at these groups.
“God forbid there’s another round of stimulus and we’re still doing the same thing,” said Eda Henries, the chief financial officer of a soul-food company who has organized fellow black professionals to help small businesses navigate aid programs during the pandemic.
