Small business loan relaunch will target minority firms after backlash

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The Small Business Administration will give priority to minority-owned businesses that have struggled to obtain coronavirus aid when the agency relaunches its Paycheck Protection Program, according to newly released rules and guidelines

Debbie Briano, a fourth-generation owner of Mexican restaurant, El Rancho Grande, works in her restaurant on Olvera Street in downtown Los Angeles, Wednesday, Dec. 16, 2020. | Jae C. Hong/ AP Photo.

Last year's rollout of the program doled out $525 billion in loans to some 5 million borrowers, but it was marred by complaints that bigger, well-financed businesses such as Shake Shack and the Los Angeles Lakers were the first to benefit and that traditionally underserved communities were initially overlooked in the hurried launch.

Jeannine Jacokes, chief executive of the Community Development Bankers Association, said that staggering the launch was a good idea because of technology problems that dogged the program when it faced high demand last year. She said that in the early days of PPP it was a “mad dash” for people to apply for loans.

 

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