Report: Poorest Congressional Districts Shortchanged by PPP Program
Watchdog Finds The 10 Least Affluent Congressional Districts Received 56,600 Fewer Loans And Up To $13.3 Billion Less In Funding Under The SBA’s Paycheck Protection Program Than 10 Richest
The poorest districts were also disproportionately Black, averaging a 41.8-percent Black population compared to the wealthiest districts’ average of 6.3-percent. It is yet more evidence that the CARES Act program billed as a lifeline for struggling small businesses was poorly designed and mismanaged by the Trump administration, allowing tens of thousands of business owners in need to be left behind — especially in communities of color — as they prioritized those with the most resources and connections.
“As the health crisis and recession grow worse, Congress has no excuse for not immediately passing another relief package,” said Accountable.US President Kyle Herrig. “But lawmakers must also learn from their mistakes and ensure that promised resources actually make their way to underserved communities and small businesses across the country, not just to the wealthy and well-connected.”
- The 10 poorest congressional districts (NY-15; KY-5; MI-13; MS-2; AL-7; SC-6; FL-5; NC-1; AZ-7; LA-5) received over 56,600 fewer PPP loans than the 10 wealthiest districts, totaling up to $13.3 billion less — and an average of $35,566 less per loan.
- The poorest districts were also disproportionately Black, averaging 41.8-percent Black compared to the wealthiest districts’ average of 6.3-percent Black.
- When comparing the wealthiest district (CA-18) with the poorest (NY-15), the wealthiest got 8,763 more loans – a potential difference of up to $1,373,160,494.
These unacceptable results follow a pattern of unequal distribution of PPP funds. A previous national analysis from Accountable.US found the 10 congressional districts
Accountable.US has been tracking PPP spending as part of its COVIDBailoutTracker.com