Were Minority-Owned Businesses Shut Out of Stimulus Loans?

According to recent SBA data, the answer is yes. New America Media (NAM) reports that African Americans and Hispanics did not benefit much from Obama's $787 billion American Recovery and Reinvestment Act via the ARC (America's Recovery Capital) program.

NAM found that of the 4,000+ ARC loans where the race of the borrower was reported, over 91% went to white-owned firms. Only 3% went to Hispanic-owned businesses, and another 3% went to Asian- or Pacific Islander-owned businesses. A mere 1.5% went to Black-owned firms.

Overall, white-owned businesses received over $130 million in loans through the program, while Hispanic-owned businesses got $4 million and black-owned businesses less than $2 million.

In the states of Alabama and Arkansas (where there are tons of Black businesses), every single firm that received an ARC loan was white-owned. In eight other states, including Louisiana and Nevada, all but one loan went to a white-owned firm.

For more details, visit:
www.targetmarketnews.com/storyid12210901.htm