Reveal

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Congress spent hundreds of billions of dollars to rescue small businesses hurt by the pandemic. But Paycheck Protection Program (PPP) money disproportionately went to White neighborhoods, leaving communities of color behind.

Small businesses are the heart of Los Angeles’ many neighborhoods. Reporter Laura C. Morel talks with business owners around Los Angeles who either received PPP money or faced insurmountable hurdles to get one of the forgivable loans. Morel talks with a Latinx barber in the Florence neighborhood, where just 10% of businesses got PPP loans. In a predominantly Black area of Inglewood, we meet clothing store owner Annie Graham, who couldn’t get a PPP loan last year, even from a lender who hooked up with Magic Johnson to specifically help minority- and women-owned businesses access the government lending program. In Graham’s neighborhood, 32% of businesses got PPP loans. Meanwhile, in the majority-White neighborhood of Playa del Rey, 61% of businesses got PPP loans. The disparity among neighboring communities is striking.

We end with an interview with reporter Gabriel Thompson about fast food franchises that received PPP money. One McDonald’s owner in Chicago got half a million dollars, but workers there filed multiple complaints with OSHA because they felt they were not protected from COVID-19.

This show is guest hosted by Sarah Gonzalez of Planet Money.

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