Policy Priorities of Business Owners of Color and COVID-19

Policy Priorities of Business Owners of Color and COVID-19

March 1, 2021

OVERVIEW

As the pandemic disproportionately affects small businesses and communities of color, the new administration and Congress are currently debating a range of policy responses. Yet there is a gap in available data reflecting absolute and relative experience and policy preferences of AAPI-, Black-, Hispanic- and Native-owned small businesses. Reimagine Main Street fielded a national survey of small business owners from January 7-27, 2021 to provide timely insight into issue priorities and policy preferences of samples of AAPI-, Black-, Hispanic-, and White-owned businesses.

KEY TAKEAWAYS

  • Impact of COVID differs across small businesses - solutions must be targeted (and tailored): More than half of Black and Hispanic business owners said that pandemic has been “catastrophic” or “very bad” compared to about ⅓ of White owned businesses. Black-owned businesses were almost twice as likely to have lost >50% revenue vs White owned businesses. The share of Black business owners who do not expect their businesses to survive through end of this year is more than 2X their White peers (23% vs 11%).


  • Relief may not reach businesses left out in the last round: As expected, businesses that got PPP last time are most likely to apply again in this round. Businesses that did not apply for PPP in the last round are far less likely than their peers to apply this round. Black and Hispanic business owners are most discouraged.


  • The racial wealth gap drives policy prioritization among business owners: Broad and intense support among business owners for contracting incentives and PPP access across all segments of small business. Significant gap in prioritization of capital access-related solutions (e.g. PPP, low cost debt, tax incentives to help defray costs of reopening) between Black (especially women) and Latino business owners vs White business owners.


Methodology


The survey was conducted online from January 7-27, 2021 among 2,254 business owners, including 155 Asian Americans and Pacific Islander (AAPI), 584 Black, 251 Hispanic, 57 Native American, and 1,207 White business owners.

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