UCI News

“You’re just screwed”: Why black-owned businesses are struggling to get coronavirus relief loans

Mother Jones, April 24, 2020

April 24, 2020

“You’re just screwed”: Why black-owned businesses are struggling to get coronavirus relief loans

Black business owners headed into the pandemic with smaller savings accounts, more debt, and less access to banks and capital than their white counterparts. The results could be catastrophic. “If you focus just on this moment, you miss the big picture,” says Mehrsa Baradaran, a wealth inequality expert and law professor at the University of California, Irvine. “You have to understand the history of how we got here.” … “They’re undercapitalized and highly vulnerable to any dip or sway in the economy.”