Deep South States Provide Over $1.1 Billion in Small Business Relief: Who Benefits, Who is Left Behind?
August 26th, 2020
Since May 2020, five Deep South states have allocated over $1.1 billion towards small business relief. These state programs have the opportunity to serve as a lifeline for small businesses struggling to survive and regroup from the economic consequences of COVID-19. Small businesses are a critical component to vibrant communities and healthy economy, and thus ensuring they receive the help they need now will shorten the road to recovery. This is particularly true for small businesses owned by people of color. Prior to the pandemic, Black and Latino-owned businesses were growing quickly, supporting over 7 million jobs, and generating over $600 billion in economic activity. In the Deep South, nearly one in four businesses (24%) are minority-owned. Despite the critical contribution of these businesses, the federal Paycheck Protection Program’s $600 billion aid for businesses largely bypassed minority-owned businesses and other small businesses. State-level small business relief programs are well-positioned to fill the gaps left by PPP, but without adequate attention, may risk repeating the same inequities.
Read the full brief here.