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A smaller PPP safety net for Latino businesses

Adapted from an SLEI report through Stanford University; Chart: Axios Visuals

An analysis of more than 5 million loans given out through the Paycheck Protection Program has found stark inequalities for Latino, Black and Asian people in how the critical funds were doled out.

The big picture: Neighborhoods with high Latino populations in places like Los Angeles, New York, Phoenix and San Diego got half as many loans than white non-Hispanic zones, according to reporting from Reveal News and The Los Angeles Times.


Why it matters: Thousands of minority-owned businesses shuttered during 2020, a fate that PPP loans for rent, utilities or payroll were meant to prevent.

  • The inequality stems partly from a long-standing lack of relationships between banks and business owners of color.
  • On average even before the pandemic, only 51% of Latino-owned businesses were approved for loans, compared to 77% of white non-Hispanic-owned businesses that did, according to a Stanford study.

What’s next: Changes made to the second round of PPP loans seek to improve access for business owners of color through smaller lenders that serve more of the communities. And non-citizens with Individual Taxpayer Identification Numbers can now get federal pandemic relief. Applications are due before May 30.

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Progressives distance from Bernie Sanders

Some progressives are distancing themselves from Sen. Bernie Sanders (I-Vt.) — leader of their revolution.

The big picture: Three factors are fueling the shift. Some feel he's not pushing President Biden far enough to the left anymore. Some believe his time as the movement leader has simply passed. Some fear tying their brand to Sanders is a gift to opponents to weaponize in crowded primaries or in general elections — and they're instead weighing the merits of aligning more directly with Biden.

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