African American and Latino small business owners have faced an uphill battle trying to get relief amid the coronavirus pandemic. The U.S. government's PPP loan program, meant to help business owners across the country, has been fraught with challenges and complaints that it is not working the way it is supposed to, hitting minority businesses particularly hard.
He recommended looking into what he calls"capillary banks," which he described as"the community development, financial institutions, minority depository institutions." "Unfortunately, it's basic economics," he said."The larger loans, even though they get a smaller fee, it's a quantum of dollars to the banks that incentivizes them to prioritize the bigger companies, the bigger loans, as opposed to the smaller ones."
He called on the country's leaders to work with him in thinking about how to change the dollar amount or the system itself to make the loan program more efficient, and incentivize banks to prioritize smaller loans.
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