PPP Loans are more likely to be forgiven in White zip codes vs. Black zip codes

[OfTheCross]

https://www.miamiherald.com/news/business/article259630329.html?ac_cid=DM624023&ac_bid=-667287810

The vast majority of small businesses that took out PPP loans have had their balances forgiven, but a small but significant number of small businesses are still struggling to win approval for their requests for forgiveness, nearly two years after the program was first created.

And a Miami Herald analysis of the most recent SBA data finds that forgiveness rates have been significantly lower for small businesses, like Raymonvil’s, that are based in majority Black and majority Hispanic ZIP codes. The percentage of loans that remain unforgiven in majority Black ZIP codes is more than three times higher than the percentage of unforgiven loans in majority white ZIP codes, while the percentage of unforgiven loans in majority Hispanic ZIP codes is more than double that of majority white ZIP codes.

The analysis of the data, which is current as of early January, included loans approved in 2020, all of which are past the grace period during which PPP loans are not required to be repaid. The Herald analyzed forgiveness rates by ZIP codes rather than by the race or ethnicity of individual business owners because roughly 70% of loans in the data contained no information about the race or ethnicity of the business owner.

 

[High Art]

Whites are always on code, even if it means taking a loss.

 

[tuckgod]

What’s a black zip code?

 

[getmoney310cpt]

What’s a black zip code?

90221

 

[cheek100]

What’s a black zip code?

South side chicago

 

[High Art]

This thread seriously deserves more attention. Did you also post this in Higher Learning? You may get some response there too.

 

[ORDER_66]

What’s a black zip code?

anywhere we reside in mass numbers but as usual america has two justice systems

 

[desjardins]

Not sure what to make of this. Why not just examine it by race of applicant. (nvm they answer this. So they don't even have demographic data on the applicants . this shyt was ripe for the taking)
What percentage of loans granted in black zip codes are for non black owned businesses in those zip codes for instance

either way 90%+ approval rate has me pissed I didn't LLC up and get in on the scam

 

[tuckgod]

90221

South side chicago

I feel y’all but those are just geographic locations usually built in the most undesirable parts of the city ie. by cemeteries, industrial areas, city dumps, rail yards, etc.

Nobody says we have to live there.

 

[getmoney310cpt]

I feel y’all but those are just geographic locations usually built in the most undesirable parts of the city ie. by cemeteries, industrial areas, city dumps, rail yards, etc.

Nobody says we have to live there.

Redlining bro why our grandparents own houses there as that’s the only place crackers would show and sell them

 

[tuckgod]

Redlining bro why our grandparents own houses there as that’s the only place crackers would show and sell them

Nah I know exactly how the ghettos were created.

I just think it’s time we stop identifying with them.

 

[EndDomination]

Whites are always on code, even if it means taking a loss.

It has a lot to do with resource access (having financial managers and attorneys familiar with loan forgiveness), plus familiarity

What’s a black zip code?

One with a majority Black population or a historically Black population.

 

[EndDomination]

Nah I know exactly how the ghettos were created.

I just think it’s time we stop identifying with them.

Stop identifying with areas that have been Black for generations?

 

[Matt504]

Color me surprised



At this point in the game, every Black person should know the rules to the game, knowing the rules gives you the perspective to bend them to your will. Creating an LLC with the express intent to game the system worked to get people the loans, but if you had an LLC prior and some bullshyt consultancy business and employ friends and family, you could have not only qualified but you'd have done so legally and be eligible for the loan forgiveness.

This isn't to suggest that the reason fewer loans are forgiven in Black zip codes is a result of more PPP fraud in Black zip codes, it is to highlight a larger point about foresight.

 

[Ahadi]

Don Diego