The Grio, June 6, 2022, Detroit program helps connect Black business owners with capital
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Numerous studies have highlighted the financial disparities between white and Black business owners. For example, the National Community Reinvestment Coalition found that banks treated applicants differently based on race as businesses sought pandemic-related Paycheck Protection Program loans. According to a 2021 report in Nerd Wallet, small white firms receive about $30,000 more in funding than similar small Black-owned businesses, which also paid higher interest rates. Startups owned by Black people received about $500 in outside equity versus $18,500 for white companies, the report also found.
