May 27, 2020 - Economy & Business
Goldman Sachs: African American business owners have seen less relief from PPP
The head of Goldman Sachs Urban Investment Group says African American business owners have not had the same relief from the Paycheck Protection Program as other businesses.
What she's saying: Minority-owned businesses "are disproportionally operating in low-income communities and some of these underbanked areas where, per capita, they just don't have the same level of bank branches and bank infrastructure," Margaret Anadu said Wednesday at an Axios digital event.
The big picture: Anadu said Goldman Sachs loan data shows that African American business owners have not been able to apply for Paycheck Protection Program loans at the same rate as other businesses.
- Anadu noted a disparity in African American business owners who applied for the loan but were not approved.
- She noted that the size of the business also affected the chances of receiving a loan. Businesses with more employees were more likely to be approved for a loan.
- "I think, unfortunately, it's important to remember that a lot of those disparities, you know, they did not materialize overnight," Anadu said. "They're not specifically and only related to the pandemic we're currently in, but they really shine a light on the disparities that have been in these communities for a long time."
Editor's note: Goldman Sachs sponsored this Axios Event.