Study Finds Minority-Owned Businesses Face PPP Disadvantage
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:
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