Micro Businesses Create Meaningful Jobs

The Inland Empire Women’s Business Center and the Coachella Valley Women’s Center conducted a study of their clients to learn more about what helps business owners become employers, creating new jobs for the region. The study also examined the types of jobs provided by micro-businesses and the wages and benefits offered. They discovered that micro-business jobs are often close to home, are flexible to accommodate caregiving and educational pursuits and are a career path.

2019 Small Business Lending in the US

This report uses the latest publicly available lending data from banks to examine changes in small business credit for June 2017 through June 2019. The data used was collected prior to the 2020 COVID-19 pandemic and provides a precrisis benchmark on the state of small business lending.

2020 Small Biz Profiles for CA Congressional Districts

Each profile focuses on the impact of small businesses in 436 congressional districts. Within, readers can find the congressional district’s total number of small employers and their industry breakout, plus the number of workers employed and payroll expended by small businesses. Additionally, the profiles provide a map showing the total number and distribution of self-employed workers across the district.

Banks Response to Racism and COVID-19

Given the financial sector’s history of systemic exclusion and discrimination, the San Francisco Office of Financial Empowerment (OFE) and the California Reinvestment Coalition (CRC) worked together to analyze banking relief that is currently being made available to consumers and borrowers, identify gaps and best practices, and outline recommendations for financial institutions and policymakers on how to dismantle systemic racism in banking and to reimagine relief and reforms that banks should embrace.

Vulnerable Households Navigating Impact of COVID-19

The COVID-19 pandemic has already had an unprecedented impact on the financial lives of households across the country. During June and July 2020, Prosperity Now conducted a national survey of lower-income households to better understand the circumstances these households are confronted with and the strategies they use to secure resources to navigate this crisis.

COVID-19’s Effects in Black Communities

The effects of the pandemic on small businesses amid forced closings, modified re-openings, and weakened demand, are well documented. Black businesses experienced the most acute decline, with a 41 percent drop. This brief examines the reasons why Black firms have been almost twice as likely to shutter as small firms overall.

Lending Discrimination within PPP

Since March 2020, businesses in the U.S. have been struggling to continue operations in the face of a global pandemic. The COVID-19 pandemic has resulted in a recession because of the widespread closures of non-essential businesses enacted to reduce the spread of the virus. Even as things begin to reopen, people are less likely to go out due to possible health risks. In response, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act which created the Paycheck Protection Program (PPP). The PPP is a lending program that provides money, in a potential grant format, to small businesses to help them weather the economic effects of the pandemic. The majority of the loan needs to be allocated for employee salaries and then the remainder can be used for other business expenses like rent and loan payments. The purpose of this study was to determine whether the disparities in small business lending we have detected prior to the COVID-19 pandemic continued with implementation of the PPP program.

Impact of COVID-19 on LMI Communities

The Federal Reserve’s community development function promotes the economic resilience and mobility of low- to moderate-income and underserved households and communities across the country. The spread of COVID-19 is having an impact on communities nationwide. To best respond to this crisis, information is needed about the scope and scale of the pandemic’s challenges. Throughout 2020, all 12 Reserve Banks and the Fed Board of Governors are surveying representatives of nonprofit organizations, financial institutions, government agencies, and other community organizations to understand the effects of COVID-19 on low- to moderate-income communities and the entities serving them. The results of each survey will be released as a downloadable report.

Impact of PPP on Small Businesses

To determine the initial effectiveness of government relief efforts, Gusto analyzed data from nearly 27,000 of our small business customers who reported receiving PPP loans and compared it to platform data from our 100,000-plus small business customers nationwide[1]. The report below shows that PPP aid has helped to provide stabilization from the initial free fall in March ‘20, with strong increases in hiring and rehiring beginning in the second half of April ‘20.

A New Rating System for CRA

NCRC developed a new ratings system for quantitative measures on banks’ community development financing under CRA. Our suggested ratings could increase community development lending and investment between $15 billion to $28 billion annually.