(Reuters) – As the government issues a second round of aid for small business owners, some U.S. senators, community banking groups and minority-owned banks said they are worried businesses owned by people of color may miss out on receiving much-needed loans.
FILE PHOTO: The New York Stock Exchange (NYSE) is seen in the financial district of lower Manhattan during the outbreak of the coronavirus disease (COVID-19) in New York City, U.S., April 26, 2020. REUTERS/Jeenah Moon
The Small Business Administration (SBA) reopened its Paycheck Protection Program (PPP) on Monday for up to $310 billion in loans for businesses affected by the coronavirus pandemic. But with many lenders carrying a backlog of applications, the money could run out in days – not good news for black and Hispanic owned businesses that couldn’t get loans the first time around.
“If the system is a first-come first-served system, it’s going to be very hard for the smallest to get in,” said Lisa Mensah, president and chief executive of the Opportunity Finance Network, a national association of community development financial institutions.
Smaller businesses, especially t