ICYMI: WSIC News: Study Shows NC Small Business Owners Largely Shut Out Of PPP
Updated: May 22, 2020
ICYMI: WSIC News: New Study Shows North Carolina's Small Business Owners Largely Shut Out Of the Federal Paycheck Protection Program
Tillis’ Actions Specifically Hurt Rural Business Owners & People of Color
Raleigh, N.C. -- WSIC News reported that small business owners across North Carolina account for just 2.5% of Paycheck Protection Program loans issued by the nation’s program, according to a new study by Piedmont Rising. The story highlighted the impact on business owners in the Asheville-area who applied for help multiple times but never got accepted.
WSIC News: Only 2.5% of NC small businesses received federal relief funds, study shows
NORTH CAROLINA — The Paycheck Protection Program was supposed to be a lifeline for small businesses sinking as the pandemic set in, forcing many to close.
But it turns out, North Carolina only got about 2.5 percent of the money loaned.
The non-profit group Piedmont Rising said of the 890,000 small businesses in North Carolina with fewer than 500 employees, only 66,000 got money to cover payroll.
The study also found minority-owner, female-owned and rural small businesses, in particular, were left out of Paycheck Protection funds.
“It looks like to the public that the government is doing a lot to help small businesses, but I think most small businesses are in the same boat I am, which is that we got no help,” Asheville business owner Derek Poteat said.
The non-profit also found that banks that offered PPP loans, including Bank of America, JPMorgan Chase and Wells Fargo, prioritized larger loan applications and charged higher fees in order to maximize loan-organization fees and their own profits.
Read the full story here.
About Piedmont Rising
Piedmont Rising is a 501 (c)4 issue advocacy organization built by and for North Carolinians to advocate for lower insurance premiums and prescription drug costs and to ensure that more people have access to safe and affordable health care. Through grassroots organizing, education, and engagement, we are amplifying our health care stories and holding our elected officials accountable to the people, and issues they were elected to represent. www.piedmontrising.org