DNC on Trump’s ‘Black Economic Empowerment Plan’

In response to Donald Trump’s “Black Economic Empowerment: The Platinum Plan” event in Atlanta, GA this afternoon, DNC War Room Spokesperson Danai Pointer released the following statement:

“While Trump will make claims about Black economic empowerment today, his record tells the real story: millions of lost jobs, housing destabilization, small business loan denials, and financial stress for millions of Black families during the sharpest economic downturn in our nation’s history. To make matters worse, due to his failure to plan for and failed response to the pandemic, this week we surpassed more than 200,000 American lives lost, including more than 40,000 Black Americans.

“As we continue to lose family members to the coronavirus and find ways to make ends meet, Trump’s number one economic priority is looking out for the nation’s highest earners and corporations. The Black community has suffered enough loss and financial hardship under Trump. We’re ready to build back better under the leadership of Joe Biden.”

Unemployment Has Been Particularly High For African Americans, and Black Business Owners and Businesses have Suffered as a Result of Trump’s Botched Coronavirus Financial Assistance Delivery  

  • Black/African American unemployment is currently 13.0%, higher than the rate for any other racial group.

  • Black-owned businesses were largely shut out of the first round of emergency Paycheck Protection Program loans, with only 12% of Black applicants saying they received the amount of loans they requested, and 26% receiving a fraction of what they requested.

  • Even after a second round of PPP funding was passed with money set aside for minority borrowers, many Black-owned small businesses still struggled to access the loans.

    • New York Times: “The institutions that frequently lend to minority-owned businesses, especially those in low-income neighborhoods, are nonprofit organizations called Community Development Financial Institutions… However, only 78 of 950 such organizations are participating in the government program, according to a Treasury spokesman.”

  • Major banks administering the small business aid program prioritized their wealthiest clients over other loan seekers — like Black small business owners.

    • Associated Press: “Black business owners are also more likely to own small operations with fewer than 10 employees, presenting less incentive to lenders who can earn more profit from more sizeable companies.”

  • And, according to the Washington Post, Black-owned businesses “are less likely to have a financial cushion, and they also tend to be in industries severely affected by the pandemic.”