![]() ![]() Corona (11368) and Elmhurst (11373), both low-income communities of color, had among the highest rates of COVID and received fewer than 1,000 loans each. ![]() Outside of lower Manhattan, the largest concentrations are in Flushing, Long Island City, Greenpoint, Park Slope, and Downtown Brooklyn. The geographic distribution of loans largely matches typical inequitable lending patterns with lower concentrations of loans in low-income communities and communities of color where COVID hit hardest. Loans Did Not Reach People or Communities of Color Unfortunately, many small businesses - particularly those operated by people of color - do not have access to these resources and may still not survive. These include whether a business was able to have the loan forgiven or repaid in affordable terms, and whether the business was able to reopen and have sufficient capital and resources to continue operating over the long term. This money could have been better directed towards struggling small businesses.Īs the forgiveness process for the program begins, there are several factors that indicate whether an existing loan was successful. Meanwhile, $134 billion of total PPP funding was never loaned out. Loans under $150,000 totaled just $4.1 billion, whereas loans over $150,000 totaled two to five times more, between $9.6 billion and $22.7 billion. As impressive as those initial figures seem, the PPP data also indicates that many businesses and communities were left out of the program. Among the loans under $150,000, the average amount was much lower at $31,000, with a median of $20,000, indicating the program served some very small businesses. This is an amount which has long been expressed as an unmet credit need. Nearly 140,000 loans - 86% of all PPP loans in the City - were under $150,000. More Funding Could Be Directed to Struggling Small Businesses This includes some landlords with histories of alleged harassment and displacement. For-profit landlords received loans while tenants got little to no relief - Over 1,900 landlords and management companies in New York City received up to $305 million in PPP loans at a time when tenants are getting little to no relief.Loans did not reach the industries that needed them the most - 30% of loans went to businesses that are more suited to working remotely, and 50% went to “face-to-face” industries that had to shut down or reduce operations.These nonbank and additional online-only lenders were also more likely to make loans under $150,000, meaning small businesses did not have the same access to traditional banks for PPP loans. Nonbank lenders are more prevalent in communities of color and with smaller businesses - The percentage of PPP loans by nonbanks are higher in communities of color - communities that have fewer traditional bank branches and higher rates of unbanked people.PPP loans did not reach people or communities of color - The geographic distribution of loans largely matches pre-existing inequitable lending patterns, with lower concentrations of loans in low-income communities and communities of color where COVID hit hardest.Also, $134 billion of total PPP funding was never loaned out. More funding should be directed to struggling small businesses - 86% of loans were under $150,000 and totaled just $4.1 billion, whereas the remaining loans were over $150,000 and totaled two to five times more ($9.6 billion - $22.7 billion).However, when we looked more closely, we found many people and communities did not receive the support they needed. The Association for Neighborhood & Housing Development (ANHD) analyzed the PPP data for zip codes in New York City and found that nearly 140,000 loans - 86% of all PPP loans in the City - were under $150,000, meaning the majority of loans went to small businesses. However, in the aggregate, the database provides some high-level insights into who benefited from this program and who didn’t as Congress debates future iterations of the program. The data has many limitations, particularly in the lack of demographic information for most loans, lack of census-tract level data, lack of application and denial information, inconsistent information between loans below and above $150,000, and data errors throughout. It wasn’t until months after the program launched that the Small Business Administration released loan-level data, enabling the public to analyze the full extent of relief provided. The Paycheck Protection Program (PPP) was a response by the federal government to provide capital to businesses that had to shut down or reduce operations to slow the spread of COVID. The COVID-19 pandemic has devastated small businesses nationwide, particularly in hard-hit cities like New York City and especially so in the City’s low-income communities and communities of color. ![]()
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