Black-owned companies are shutting down twice as fast as other businesses
Wednesday, August 5, 2020
Black-owned businesses have been hit substantially harder by the coronavirus pandemic than companies overall, according to the Federal Reserve Bank of New York.
The New York Fed on Wednesday unveiled a study on the virus' impact on business ownersnationwide, and the results show disparities in how the business owners of various races have struggled.
The report estimates that 41% of Black-owned businesses across the country shut down between February and April, echoing the findings of a similar University of California, Santa Cruz study released in June. About 32% of Latino businesses and 26% of Asian businesses shut down over the same time span. Only about 17% of white businesses shut down during the same period, the study authors found.
The authors cite lack of financial savings, less access to capital, including federal PPP loans, and funding gaps that existed prior to the pandemic as causes for the demographic disparities.
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