We need to continue to support our Black businesses. The challenging times brought about by COVID-19 have ravaged an already fragile economy, causing many businesses to shutter. Black-owned businesses, in particular, are being hit the hardest during the pandemic. Reports reveal that despite COVID’s impact on businesses nationwide, there is still a significant disparity in regards to how minority business owners are struggling to stay afloat. According to a study by The New York Fed, 41% of Black-owned businesses throughout the US have shut down between February and April. Further findings reveal that around 32% of Latino businesses and 26% of Asian businesses shut down during the same timeframe. Whereas only 17% of white businesses were closed at the time.
The authors of the study stated that the “Lack of financial savings, less access to capital, including federal PPP loans, and funding gaps that existed before the pandemic as causes for the demographic disparities.”
Healthwise research shows that African Americans have higher coronavirus infection and mortality rates. Also, a large number of Black-owned businesses are located in major cities, which were some of the most affected locations in the spread of Covid-19. The study conveys that 10 of the country’s most populated counties and metro regions are Los Angeles, Chicago, Houston, Detroit, Washington, Manhattan, New York, Atlanta, and Miami. These locations have a large concentration of Black-owned businesses and residents.
During the study, researchers discovered that two-thirds of Black businesses are located in areas with the highest percentages of Covid-19 cases. Starting in the summer, numerous Americans have promoted “Buy Black” programs to support Black-owned businesses during the pandemic. PPP program administrators are making efforts to bridge the divide created by racial disparity regarding who can obtain loans.
We are still a long way from the pandemic ending. Make a purchase to a Black-owned business today or swap out your essentials with a Black-owned brand.
Photo Credit: Black Enterprise
Source: CNN Business