BPI: LARGE BANKS SERVE CREDIT NEEDS OF SMALL BUSINESSES IN LOW-AND MODERATE-INCOME AND MINORITY COMMUNITIES THROUGH THE PAYCHECK PROTECTION PROGRAM

摘要

The Bank Policy Institute (BPI) has released Paycheck Protection Program (PPP) data from a recent survey of the nine largest retail banks. The analysis looks at PPP lending within low-and moderate-income communities and predominately minority communities by large banks, and finds that America's large banks were successful in providing PPP loans to small businesses in minority and lower-income areas. As noted in prior studies, minority-owned small businesses are disproportionately more exposed to negative financial shocks. While PPP does not address the long-standing structural vulnerabilities of the small business sector generally or of minority businesses in particular, it may serve as a lifeline during the health and economic crisis brought on by the coronavirus (COVID-19) pandemic.