Title
Authorizing the Committee on Commerce and Economic Development to hold hearings examining the COVID-19 pandemic's impacts on Black-owned businesses and the disparity in rates of closure.
Body
WHEREAS, Black-owned businesses are a significant driver of wealth; however, due to systemic disinvestment, Black business ownership, average revenue, and jobs per firm significantly trail white-owned businesses; and
WHEREAS, Research from Brookings found that "if the number of Black businesses matched the population size and the revenue of each of those firms matched non-Black businesses' revenue, then the total revenue of Black businesses would increase by $5.9 trillion...and it would create more than 19 million jobs"; and
WHEREAS, Center City District found Philadelphia has the lowest business density and Black business density compared to Atlanta, New York, Boston, and Washington, D.C. Philadelphia has just 1.8 Black-owned firms per 1,000 Black residents; and
WHEREAS, Center City District also found Philadelphia lagged Atlanta and Washington, D.C. in average revenue for Black-owned firms - just $854,000 in Philadelphia compared to $1.3 million Atlanta and $1.9 million in D.C.; and
WHEREAS, Roughly 58% of Black-owned businesses were already at risk of financial distress before the pandemic, compared with about 27 percent of white-owned businesses; and
WHEREAS, As of April 2020, 40% of Black business owners reported not returning to work after the height of the pandemic compared to 17% of white business owners; and
WHEREAS, PPP loans were granted to white businesses at a much higher rate than their Black counterparts, reaching almost 3 times as high, and when PPP loans were granted, Black-owned businesses received loans that were approximately 50% lower than white-owned businesses with similar characteristics; and
WHEREAS, In Philadelphia, the number of active Black business owners fell by 68% from March to July 2020, while the number of active white b...
Click here for full text