Disparities in PPP Lending by Race
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PPP loan data on race reveals disparities in the number of loans for the first time period PPP loans were given and amount of loans given to minority and non-minority owned businesses for both time periods. According to 2017 Census data minority owned businesses made up 31% of employer and non-employer firms, non-minority owned businesses made up 68% of total businesses in the U.S., and businesses equally minority and non-minority owned made up less than 1%. According to loan data in which respondents answered the demographic question on race, non-minority applicants received 83% of loans and minority businesses only received 17% of loans for the first period PPP loans were available. Black owned businesses fared the worst compared to their overall make-up of businesses owners in the first window of opportunity. Black owned businesses only received 1.6% of loans when they made up 10% of U.S. businesses owners according to U.S. Census data.
![Chart 1: PPP Loans by Race from April 3rd through 16th, 2020](https://theinstitutenc.org/wp-content/uploads/2021/03/ppp-loans-by-race_chart1-1024x585.png)
![Table 1: Average Loan Amounts by Race Compared to White Owned Businesses from April 3rd, 2020 to January 31, 2021](https://theinstitutenc.org/wp-content/uploads/2021/03/disparities-by-race-table-1.jpg)
![Chart 2: PPP Loans by Race from April 27, 2020 through January 31, 2021](https://theinstitutenc.org/wp-content/uploads/2021/03/ppp-loans-by-race_chart2-1024x585.png)
![Table 2: Average Loan Amounts by Race Compared to White Owned Businesses from April 27th, 2020 to January 31st, 2021](https://theinstitutenc.org/wp-content/uploads/2021/03/disparities-by-race-table-2.jpg)
![Table 3: Average Loan Amounts by Race Compared to White Owned Businesses from April 27th, 2020 to January 31st, 2021](https://theinstitutenc.org/wp-content/uploads/2021/03/disparities-by-race-table-3.jpg)