Paycheck Protection Program: Unequal Loan Distribution and Increasing Racial Disparities

Michael Diaz, Sociology and Chicano Studies, Class of 2023

Internship Office: Office of Senator Monique Limon

In 2020, Latinx-owned businesses had their PPP loans approved nearly half the rate of white-owned businesses, 10% compared to 17%. The food service industry remains one of the hardest hit sectors of the pandemic which has resulted in large decreases in revenue, reduced employee hours, and increased employee lay-offs.Through an analysis of PPP loan distribution by the Small Business Administration in California and interviews with Latinx restaurant owners, this op-ed highlights the barriers Latinx restaurants faced during the pandemic, applying to PPP loans, and receiving funding.