Sunday, December 20, 2009
Minority-owned small businesses have largely been shut out of the federal government’s economic recovery plan. Using information obtained from the Small Business Administration (SBA), New America Media (NAM) found that more than 90% of loans funded by the American Recovery and Reinvestment Act have gone to white-owned companies, despite the fact that only 67% of the U.S. population is white.
Hispanic-owned and Asian-owned businesses each received 3% and African-American-owned firms a mere 1.5%, even though Hispanics make up 15% of the population and African-Americans 12%. Hispanics currently own 7% of U.S. businesses and African-Americans 5%. Of the loans reviewed by NAM, $130 million was distributed to white business owners, $4 million to Hispanics and $2 million to blacks.
In Alabama, Arkansas, New Hampshire, South Dakota, and Wyoming, all recovery act loans went to businesses owned by whites.
-Noel Brinkerhoff
Minority Businesses Shut Out of Stimulus Loans (by Aaron Glantz, New America Media)
Minority Business Development Agency (AllGov)
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