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Due to structural inequality, Black-owned businesses are finding it very difficult to tap into relief for small businesses provided in the #CARESAct. A thread https://www.nytimes.com/2020/04/10/business/minority-business-coronavirus-loans.html
The #SBAloans provided in the#CARESAct are available via banks that already offer SBA loan products. Due to redlining, lending discrimination, systemic racism, and structural inequality, communities/people of color do not have access to credit. 2/
This means that banks are sparsely located in communities of color as research conducted by @Trulia (with input from NFHA @zillow & @KirwanInstitute) reveals. 3/
It gets worse. Banks are closing branches in Black areas at higher rates than in non-Black areas. Moreover, banks are closing branches in high-income Black areas at higher rates than in low-income non-Black areas. It's not about economics. https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/52872925
Meanwhile, alternative financial services providers like payday lenders, subprime lenders, check cashers, etc., are concentrated in communities of color. But, of course, these are not depository, regulated entities and they don't offer SBA products. 5/6
As a result, POC, disproportionately access credit outside of the financial mainstream. This means these communities are under-banked and are disproportionately credit invisible. 6/6
