COVID-19 has had a large impact on Black-owned businesses, with only 8.8% reporting profitability and growth.

What are the challenges of Black-owned businesses during the pandemic?

This infographic highlights the findings of part 2 of “The Megaphone Of Main Street: The Impact of Covid-19” data report.

SCORE conducted research for this data report via an online survey administered to its small business clients in August 2020 with roughly 3,500 responses.

How would you describe your business now?

Profitable and Growing

  • Black-owned businesses: 8.8%
  • White-owned businesses: 14.7 %

Not Profitable

  • Black-owned businesses: 56.3%
  • White-owned businesses: 44.1%

Black-owned business operations were more significantly disrupted by COVID-19.

How much impact have the following changes had on your business since March 15, 2020? (% reporting large impact)

Need to work remotely

  • Black-owned businesses: 45.2%
  • White-owned businesses: 25.1%

COVID-19 infection of you or your family

  • Black-owned businesses: 39.1%
  • White-owned businesses: 20.5%

COVID-19 infection of your staff

  • Black-owned businesses: 25.9%
  • White-owned businesses: 11.4%

Black-owned businesses were more likely to seek – but less likely to receive – outside funding.

Delays for existing loan payments

  • 19.9% of White-owned businesses applied for delays, and 72.4% were approved.
  • 39.8% of Black-owned businesses applied for delays, and 33.6% were approved.

Expanded lines of credit

  • 16.4% of White-owned businesses applied, and 32.7% were approved.
  • 37.8% of Black-owned businesses applied, and 12.1% were approved.

New loans

  • 26.5% of White-owned businesses applied, and 54.2% were approved.
  • 47.7% of Black-owned businesses applied, and 22.3% were approved.

New investors

  • 9.6% of White-owned businesses applied, and 13.3% were approved.
  • 31.6% of Black-owned businesses applied, and 6.4% were approved.

Likewise, Black-owned businesses were more likely to seek – but less likely to receive – government funding.

PPP (Paycheck Protection Program)

  • 47.8% of White-owned businesses applied, and 63.7% received the full amount.
  • 53.4% of Black-owned businesses applied, and 20.3% received the full amount.

EIDL (Economic Injury Disaster Loans)

  • 44.3% of White-owned businesses applied, and 42.8% received the full amount.
  • 61.1% of Black-owned businesses applied, and 15% received the full amount.

SBA loans

  • 19.5% of White-owned businesses applied, and 33% received the full amount.
  • 41.3% of Black-owned businesses applied, and 8.4% received the full amount.

Download the infographic to see the full results.

While you may be facing uncertainty, there is one thing you can be certain of: SCORE is here for you. Work with a SCORE mentor, and visit our Small Business Resilience Hub.

Megaphone Of Main Street: Impact of Covid-19 Infographic #2- Impact on Black-owned Small Businesses

Megaphone Of Main Street: Impact of Covid-19 Infographic #2- Impact on Black-owned Small Businesses