#NNPA BlackPress
$349 billion COVID-19 Small Business Program short-changes businesses of color
NNPA NEWSWIRE — The Center for Responsible Lending (CRL) estimated that as many as 95% Black-owned businesses stood no chance of securing a program loan. Other communities of color were similarly likely to be shut out as well: 91% of both Latino-owned and Native Hawaiian or Pacific Islander-owned businesses were financially shortchanged.

Federal lawsuits allege systemic lending biases that place 8.7 million jobs at risk
By Charlene Crowell, NNPA Newswire Contributor
A $349 billion program created to assist America’s small businesses was launched on April 3 to provide payroll, utilities, rent and more for eligible applicants screened by the U.S. Small Business Administration (SBA). On April 16 – less than two weeks later — this national stimulus enacted in the throes of the COVID-19 pandemic, ran out of funds. In separate but related legal actions, federal lawsuits were filed, challenging the lack of equitable access to the stimulus program.
On April 19, four class action lawsuits challenged banks’ use of PPP funds. Filed separately in the U.S. District Court’s Central California office, the lawsuits are against Bank of America, JP Morgan Chase, U.S. Bank and Wells Fargo.
While this legal process unfolds, the Center for Responsible Lending (CRL) estimated that as many as 95% Black-owned businesses stood no chance of securing a program loan. Other communities of color were similarly likely to be shut out as well: 91% of both Latino-owned and Native Hawaiian or Pacific Islander-owned businesses were financially shortchanged.
At the same time, businesses of color together are responsible for employing 8.7 million people and represent 30% of all U.S. businesses. Additionally, the combined contributions that these businesses make to the national economy is a noteworthy $1.38 trillion.
Days later on April 21, an additional $310 billion for the Paycheck Protection Program (PPP) was approved by the U.S. Senate and is expected to be quickly passed in the U.S. House. Even so, some reactions to the new funding suggested that it was still too little and needs to better address how Black and other businesses of color can fully participate.
“This bill distributes most of the funding again to large banks that prioritized wealthier businesses over small ones,” said Ashley Harrington, Federal Advocacy Director with the Center for Responsible Lending (CRL). “Businesses of color were locked out of round one of the SBA PPP, and this Congress proposal fails to assure that they will have fair access to the new $60 billion small business appropriation. Nor does it ensure equity and transparency by requiring data tracking on borrower demographics and loan amounts to be collected or reported.”
“While it is a good and necessary change to include set-asides for community banks to reach more businesses and rural areas, the bill fails to dedicate targeted funds for use by minority depository institutions (MDIs), and community development financial institutions (CDFIs),” added Harrington. “These are the institutions with a strong track record of serving borrowers of color. Both MDIs and CDFIs should have access to this vital small business support.”
The set-asides included in the new appropriations bill allocate monies to institutions based on bank size alone. Since over 98% of banks and credit unions fall into the allocation that includes CDFIs and MDIs, it is highly unlikely that these institutions will be able to access the funds – especially as the monies will have run out before these two types of institutions would be able to secure SBA approval.
The new set-asides included in the new appropriations bill allocates monies to institutions based on bank size alone. This provision places CDFIs and MDIs in direct competition with better resourced smaller institutions like community banks for loan funds.
PPP was a federal response that was supposed to supply funds through June 30 to small businesses and nonprofit organizations. It was created as part of a $2 trillion, national rescue plan authorized through the CARES Act. Instead, it is now no longer accepting applications or approving new lenders in the program. The program’s loans were capped to no more than $10 million and came with an explicit exclusion of businesses based outside of the United States. For six months, loan payments would be suspended and under specific and verifiable conditions, the loans also could be completely forgiven.
PPP applicants were required to interact with banks and other existing SBA lenders. For communities of color, this specific condition meant beginning, not continuing or expanding financial relationships. Fees paid by the federal government to participating financial institutions were based on the size of loans approved for originating program loans. For example, American Banker reported recently that on a $10 million loan, bank fees would be $100,000, and fees for a $350,000 loan would be $17,500.
Together, these two program requirements gave larger small businesses quicker and greater access to these loans. Instead of providing needed relief for struggling businesses, the PPP is just the latest iteration of federal funding and resources being systematically withheld from individuals and people of color.
A similar reaction to the exhaustion of funding was expressed by Orson Aguilar, director of economic policy for UnidosUS (formerly LaRaza) that champions rights for Latinos.
“We know that many companies did not benefit because they do not have banking relationships and that is a requirement,” said Aguilar.
Through the assistance of the Leadership Conference on Civil and Human Rights, 111 organizations across the country, including CRL, jointly told Congress their collective concerns over the exclusion of relief to communities of color in the federal pandemic response.
“Communities that have already been marginalized by structural barriers to equal opportunities and who have low levels of wealth are particularly vulnerable during this current emergency,” wrote the civil rights advocates in an April 16 letter. “While many working people have been sidelined, many others are still providing essential services during the crisis – working at our grocery stores, delivering mail and packages, and providing care to vulnerable people – putting their lives at risk, often at reduced hours and wages, to keep our country running.”
“The ongoing crisis has laid bare the structural racism and barriers to opportunity that are entrenched in our society, and our collective actions now must not worsen them,” concluded the coalition.
CRL identified specific ways in which the COVID-19 federal response can become more inclusive. Its PPP recommendations include:
- Dedicate 20% of all new funding to businesses of color;
- At least $25 billion in funding for MDIs and CDFIs;
- Provide an alternative PPP loan of up to a $100,000 that can be forgiven and better fits the needs of very small businesses;
- Adjust program rules to serve more small businesses and ensure equity and transparency by requiring all lenders to provide both borrower demographics and loan amounts;
- Expand outreach and enrollment assistant through community development corporations and community-based organizations.
“The Great Recession drained communities of color of a trillion dollars of wealth that they have yet to recover,” concluded Mike Calhoun, CRL President. “They should not be excluded from one of the largest COVID-19 relief programs. We cannot allow that to happen again.”
Charlene Crowell is a Senior Fellow with the Center for Responsible Lending. She can be reached at charlene.crowell@responsiblelending.org.
#NNPA BlackPress
Chavis and Bryant Lead Charge as Target Boycott Grows
BLACKPRESSUSA NEWSWIRE — Surrounded by civil rights leaders, economists, educators, and activists, Bryant declared the Black community’s power to hold corporations accountable for broken promises.

By Stacy M. Brown
BlackPressUSA.com Senior National Correspondent
Calling for continued economic action and community solidarity, Dr. Jamal H. Bryant launched the second phase of the national boycott against retail giant Target this week at New Birth Missionary Baptist Church in Atlanta. Surrounded by civil rights leaders, economists, educators, and activists, Bryant declared the Black community’s power to hold corporations accountable for broken promises. “They said they were going to invest in Black communities. They said it — not us,” Bryant told the packed sanctuary. “Now they want to break those promises quietly. That ends tonight.” The town hall marked the conclusion of Bryant’s 40-day “Target fast,” initiated on March 3 after Target pulled back its Diversity, Equity, and Inclusion (DEI) commitments. Among those was a public pledge to spend $2 billion with Black-owned businesses by 2025—a pledge Bryant said was made voluntarily in the wake of George Floyd’s murder in 2020.“No company would dare do to the Jewish or Asian communities what they’ve done to us,” Bryant said. “They think they can get away with it. But not this time.”
The evening featured voices from national movements, including civil rights icon and National Newspaper Publishers Association (NNPA) President & CEO Dr. Benjamin F. Chavis Jr., who reinforced the need for sustained consciousness and collective media engagement. The NNPA is the trade association of the 250 African American newspapers and media companies known as The Black Press of America. “On the front page of all of our papers this week will be the announcement that the boycott continues all over the United States,” said Chavis. “I would hope that everyone would subscribe to a Black newspaper, a Black-owned newspaper, subscribe to an economic development program — because the consciousness that we need has to be constantly fed.” Chavis warned against the bombardment of negativity and urged the community to stay engaged beyond single events. “You can come to an event and get that consciousness and then lose it tomorrow,” he said. “We’re bombarded with all of the disgust and hopelessness. But I believe that starting tonight, going forward, we should be more conscious about how we help one another.”
He added, “We can attain and gain a lot more ground even during this period if we turn to each other rather than turning on each other.” Other speakers included Tamika Mallory, Dr. David Johns, Dr. Rashad Richey, educator Dr. Karri Bryant, and U.S. Black Chambers President Ron Busby. Each speaker echoed Bryant’s demand that economic protests be paired with reinvestment in Black businesses and communities. “We are the moral consciousness of this country,” Bryant said. “When we move, the whole nation moves.” Sixteen-year-old William Moore Jr., the youngest attendee, captured the crowd with a challenge to reach younger generations through social media and direct engagement. “If we want to grow this movement, we have to push this narrative in a way that connects,” he said.
Dr. Johns stressed reclaiming cultural identity and resisting systems designed to keep communities uninformed and divided. “We don’t need validation from corporations. We need to teach our children who they are and support each other with love,” he said. Busby directed attendees to platforms like ByBlack.us, a digital directory of over 150,000 Black-owned businesses, encouraging them to shift their dollars from corporations like Target to Black enterprises. Bryant closed by urging the audience to register at targetfast.org, which will soon be renamed to reflect the expanding boycott movement. “They played on our sympathies in 2020. But now we know better,” Bryant said. “And now, we move.”
#NNPA BlackPress
The Department of Education is Collecting Delinquent Student Loan Debt
BLACKPRESSUSA NEWSWIRE — the Department of Education will withhold money from tax refunds and Social Security benefits, garnish federal employee wages, and withhold federal pensions from people who have defaulted on their student loan debt.

By April Ryan
Trump Targets Wages for Forgiven Student Debt
The Department of Education, which the Trump administration is working to abolish, will now serve as the collection agency for delinquent student loan debt for 5.3 million people who the administration says are delinquent and owe at least a year’s worth of student loan payments. “It is a liability to taxpayers,” says White House Press Secretary Karoline Leavitt at Tuesday’s White House Press briefing. She also emphasized the student loan federal government portfolio is “worth nearly $1.6 trillion.” The Trump administration says borrowers must repay their loans, and those in “default will face involuntary collections.” Next month, the Department of Education will withhold money from tax refunds and Social Security benefits, garnish federal employee wages, and withhold federal pensions from people who have defaulted on their student loan debt. Leavitt says “we can not “kick the can down the road” any longer.”
Much of this delinquent debt is said to have resulted from the grace period the Biden administration gave for student loan repayment. The grace period initially was set for 12 months but extended into three years, ending September 30, 2024. The Trump administration will begin collecting the delinquent payments starting May 5. Dr. Walter M. Kimbrough, president of Talladega College, told Black Press USA, “We can have that conversation about people paying their loans as long as we talk about the broader income inequality. Put everything on the table, put it on the table, and we can have a conversation.” Kimbrough asserts, “The big picture is that Black people have a fraction of wealth of white so you’re… already starting with a gap and then when you look at higher education, for example, no one talks about Black G.I.’s that didn’t get the G.I. Bill. A lot of people go to school and build wealth for their family…Black people have a fraction of wealth, so you already start with a wide gap.”
According to the Education Data Initiative, https://educationdata.org/average-time-to-repay-student-loans It takes the average borrower 20 years to pay their student loan debt. It also highlights how some professional graduates take over 45 years to repay student loans. A high-profile example of the timeline of student loan repayment is the former president and former First Lady Barack and Michelle Obama, who paid off their student loans by 2005 while in their 40s. On a related note, then-president Joe Biden spent much time haggling with progressives and Democratic leaders like Senators Elizabeth Warren and Chuck Schumer on Capitol Hill about whether and how student loan forgiveness would even happen.
#NNPA BlackPress
VIDEO: The Rev. Dr. Benjamin F. Chavis, Jr. at United Nations Permanent Forum on People of African Descent
https://youtu.be/Uy_BMKVtRVQ Excellencies: With all protocol noted and respected, I am speaking today on behalf of the Black Press of America and on behalf of the Press of People of African Descent throughout the world. I thank the Proctor Conference that helped to ensure our presence here at the Fourth Session of the […]

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