Study Finds Minority-Owned Businesses Face PPP Disadvantage

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KEYWORDS Minority News PPP

Jan. 27, 2021—A research study conducted by the Stanford Latino Entrepreneurship Initiative uncovered important information to keep in mind as the next round of the Paycheck Protection Program (PPP) gets underway, Forbes reports

The study found that businesses that were prepared to document their payroll, revenue, and expenses, and that had pre-existing, personal relationships with lawyers, accountants, and bankers, applied and received the money; businesses that did not, largely didn’t apply.

The study also found that Latino-owned businesses were less likely to understand how to apply and what the required application materials would be compared to White-owned businesses. White-owned businesses received PPP loans at over double the rate of Latino-owned businesses. 

Read more on the study originally reported on by Forbes here, and find additional insight on PPP coverage gathered by the Ratchet+Wrench team below:

Help Funding Resources
A shop owner shares what’s helped save him thousands when it comes to government aid.

A Breakdown of COVID-19 Financial Aid
Where the money is going—and how to get a piece of it.

Breaking Down Coronavirus Loans
Listen to Brad Mewes, principal at Supplement Advisory, an automotive industry firm, hash out all of the new details on the PPP, Economic Injury Disaster Loan (EIDL), and other loans you may not even be aware of. 

Relief Bill Clarifies, Extends PPP
A new coronavirus relief bill passed by Congress extends the Payment Protection Program and clarifies how business owners can deduct expenses related to those funds.

PPP Loans Re-Open for Small Businesses
Businesses with $1 billion or less in assets are eligible to submit applications.

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