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How PPP loans eluded small businesses of color

Data from the Fed's Small Business Credit Survey (SBCS) sheds light on the disparities faced by small business owners of color, or SBOCs, in applying for financial aid. SBOCs were in greater need of financial support than their white-owned counterparts, but they successfully accessed the Paycheck Protection Program (PPP) less frequently. Beyond customer service, language, and trust issues, SBOCs also were less likely to have a prior lending relationship with a bank and often lacked the networks to help them navigate the confusing, changing application process.