It’s no surprise that Black and Latino-owned small businesses had trouble receiving funds from the Paycheck Protection Program (PPP).
However, small community banks have stepped up, providing a lifeline for small Black and minority businesses who were struggling. The issue was so prevalent, when Congress added another $284 billion in new funding for the PPP late last year, $12 billion was specifically earmarked for Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs).
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That allowed small minority businesses the time and attention they needed. Smaller banks including Carver, United One, and Citizens Savings and Trust, were not only able to help their customers but also gained some new ones as they also helped small business owners with who they did not have a previous relationship with.
Jay Reynolds of WolfCreek Consulting, a Florida-based staffing firm, told Black Enterprise last summer that NDC, a community bank, helped immensely when the pandemic struck.
“I had a couple conversations with NDC and we went through the numbers and they were able in a fairly straight fashion to get that PPP funding, and it came along at a time where it was absolutely necessary,” Reynolds said. “Through NDC and having that conversation with them, [it] helped us through some terrible things happening to the business. I don’t want to say close or lay off people, but I can tell you that they literally made a difference.”
Source: Small Community Banks Helping Black Businesses Trying To Stay Afloat During Pandemic
