Yasmine Young, owner of Diaspora Salon, which she established in 2015 without any loans. She joined a lawsuit against Bank of America filed by borrowers whom the bank turned away because they had credit cards from other banks. (Credit…André Chung for The New York Times)
Minority business owners have a history of struggling to receive bank loans. Now with the COVID-19 crisis, that history rears it’s head. Currently, businesses can apply for the Paycheck Protection Program. The program gives businesses loans that they do not have to repay provided that the money is used for payroll, rent or mortgage expenses. The fear is that due to minority businesses having weaker banking relationships than white owned businesses that they may not receive the loan to keep their businesses open. Black and Latino business owners are denied loans at higher rates.
Here is a link to Small Business Administration Guidance & Loans
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