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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.

Tech scrambles to derail inauguration threats

Illustration: Sarah Grillo/Axios

Tech companies are sharing more information with law enforcement in a frantic effort to prevent violence around the inauguration, after the government was caught flat-footed by the Capitol siege.

Between the lines: Tech knows it will be held accountable for any further violence that turns out to have been planned online if it doesn't act to stop it.

Dave Lawler, author of World
2 hours ago - World

Uganda's election: Museveni declared winner, Wine claims fraud

Wine rejected the official results of the election. Photo: Sumy Sadruni/AFP via Getty

Yoweri Museveni was declared the winner of a sixth presidential term on Saturday, with official results giving him 59% to 35% for Bobi Wine, the singer-turned-opposition leader.

Why it matters: This announcement was predictable, as the election was neither free nor fair and Museveni had no intention of surrendering power after 35 years. But Wine — who posed a strong challenged to Museveni, particularly in urban areas, and was beaten and arrested during the campaign — has said he will present evidence of fraud. The big question is whether he will mobilize mass resistance in the streets.

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