Data: S&P Global; Table: Axios Visuals

With the deadline for businesses to secure funding from the Small Business Administration's Paycheck Protection Program (PPP) less than two weeks away, the most high profile portion of the $2 trillion CARES Act looks to have left out the people who needed it most.

Driving the news: Fed chair Jerome Powell said during his testimony to the Senate Banking Committee Tuesday that despite the nearly $700 billion program, the coronavirus pandemic was "presenting acute risks to small businesses."

Between the lines: That seemed to be doubly true for black-owned businesses, which were statistically much more likely to need the funds.

  • Research shows 41% of black business owners have shut their doors since the pandemic started, perhaps in part because, according to a recent analysis, 95% of black-owned businesses were shut out of the PPP.

Details: An April Fed survey found some 21% of black-owned businesses were financially "distressed" at the end of 2019 compared to 5% of white-owned businesses.

  • Black-owned small businesses also are highly concentrated in retail, restaurants and other service industries most affected by the shutdowns, Reuters noted.
  • The ACLU and other civil rights organizations filed a lawsuit Tuesday, claiming PPP unfairly denied black and Latino business owners PPP loans.

The big picture: PPP money generally missed the industries and areas most heavily impacted by COVID-19.

  • A second analysis of the program from S&P Global U.S. chief economist Beth Ann Bovino finds just 42.4% of total PPP loans approved went to service industries significantly affected by social distancing — even though the sector accounted for 66.8% of job losses.
  • Similarly, seven of the 10 states that received the smallest dollar amount of loans were among the 10 states with the highest number of people approved for unemployment claims as of May 23.

What's next: There remains approximately $100 billion of government funding allocated for PPP that has not yet been claimed.

The last word: "While the opening of some states may have come just in the nick of time for some businesses in the service sector, there is still a long way to go," Bovino said in the report.

  • "It remains unclear how many of these companies survived, or will survive, the first stage of the sudden-stop recession. That may make the climb back to prepandemic economic levels even steeper."

Go deeper: Paycheck Protection Program borrowers get more flexibility

Go deeper

Dion Rabouin, author of Markets
Sep 21, 2020 - Economy & Business

Unemployment concerns are growing

Data: U.S. Department of Labor; Chart: Naema Ahmed/Axios

Initial unemployment insurance filings fell below 800,000 for the first time since March last week, but the total number of Americans receiving unemployment benefits remained at nearly 30 million, data from the Department of Labor shows.

What's happening: While fewer people are filing initial jobless claims, there remains a staggering number of unemployment insurance recipients and the data are growing increasingly unreliable.

Unrest in Philadelphia after fatal police shooting of Black man

Demonstrators rally on Tuesday near the location where Walter Wallace was killed by two police officers in Philadelphia, Pennsylvania. Photo: Mark Makela/Getty Images

The Pennsylvania National Guard was mobilized Tuesday during a tense second night of protests in Philadelphia over the fatal police shooting of Walter Wallace, a 27-year-old Black man.

Driving the news: Philadelphia Jim Kenney (D) and Police Commissioner Danielle Outlaw said in a joint statement Monday that police were launching a "full investigation" to answer questions that arose from video that captured part of the incident with police.

Updated 49 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Politics: Obama: Trump is "jealous of COVID's media coverage" Axios-Ipsos poll: Federal response has only gotten worse.
  2. Health: Hospitals face a crush — 13 states set single-day case records last week.
  3. Business: Winter threat spurs new surge of startup activity.
  4. Media: Pandemic causes TV providers to lose the most subscribers ever.
  5. States: Nearly two dozen Minnesota cases traced to three Trump campaign events.
  6. World: Putin mandates face masks.

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