Racial minorities faced more slumps in business despite Biden’s Stimulus plan

Racial minorities faced more slumps in business despite Biden's Stimulus plan
Source: Web

In the recent eleven months, Reign Free had performed everything that she can do to keep her catering business open after the pandemic Coronavirus (a tough time shared by numerous American Black entrepreneurs).

When Reign Free was short on money, she went to the American government and other lenders to get loans. She even tried to dig out novel opportunities, but she was afraid of how long her business, Red Door Catering, can avoid the slump.

Reign Free described to Agence France-Presse (AFP) news agency that they are getting crumbs, and it is not enough. She continued that they are still hoping and trying to stay afloat, but they are getting deeper and deeper into the hole.

Coronavirus hit hard especially Black-owned businesses

Racial minorities in the United States had faced the worst situation of the Coronavirus pandemic in terms of unemployment, business losses, higher death rates, and gained less success to get federal government-provided relief.

President Biden said that his suggested 1.9 trillion dollars spending package would pay for an aggressive Coronavirus vaccine campaign to stop the spread of the virus that had already destroyed even high-level businesses. Moreover, Biden even raised the point on the long-standing racial discrimination that turned severe during the epidemic.

Racial minorities faced more slumps in business despite Biden's Stimulus plan
Racial minorities faced more slumps in business despite Biden’s Stimulus plan,
Source: Web

Cathy Adams has admired Biden’s effort

The CEO and president of the OAACC (Oakland African American Chamber of Commerce), Cathy Adams, said about President Biden’s plan that it is a great effort.

The world’s largest and deadliest Coronavirus hit has left a terrible effect on America with above 480,000 deaths and resulted in massive layoffs, according to Labor Department data.

The Labor Department said that last month, the unemployment rate rose 5.7% for the white community but 9.2% for the African American community and 8.6% for Hispanics. Moreover, the government data even suggested that both communities have bigger death numbers from COVID-19 as compared to white ones. Similarly, their businesses had been endangered.

The New York Federal Reserve’s August study described that the Black people’s business failure rate is two times higher than the national average.

Last March, Congress has powered 2 rounds of the PPP (Paycheck Protection Program), which gives loans to small businesses and is also a part of the 2.2 trillion dollars CARES Act.

Research from the University of California said that in the most populous California state, Hispanic and Black communities had gained less Paycheck Protection Program as compared to White and Asian neighborhoods.

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