Mark Cuban continued his public effort to help businesses navigate the choppy financial waters of the coronavirus pandemic, and this time he is focused on helping minority-owned and women-owned businesses who missed out on their share of the Paycheck Protection Program (PPP).
In a pair of tweets on Wednesday, Cuban offered assistance to the help those businesses that are eligible, but have not been approved for a PPP loan.
Cuban’s offer followed his comments a few days earlier in which he addressed the shortcomings of the PPP program and offered his own solutions, including $1,000 stimulus checks to families every two weeks for two months in order to help boost consumer spending.
Cuban’s newest offer was made as the economy continues to reel from the impact of the coronavirus. A recent report by Facebook and the Small Business Roundtable found that one-third of U.S. small businesses have ceased operating over the past several months, and an additional 11% of business owners expect to fail in the next three months if the difficult coronavirus-induced conditions continue. Consequently, eligible companies who have yet to receive PPP funding may be on their last legs before joining the fallout from the deepest economic crisis since the Great Depression.
Dallas Mavericks owner Mark Cuban at Staples Center on December 01, 2019 in Los Angeles, California.
Minority-owned and women-owned business are particularly at risk. A recent study sponsored by racial justice and equal opportunity organizations Color of Change and UnidosUS , found that only 12 percent of Black and Latinx business owners who applied for aid from the Small Business Administration received the full amount of the funds they requested, and 26 percent report they had received only a fraction of what they had requested. Those numbers contrast with other data reported by the U.S. Census Bureau that almost 38% of those who applied for PPP funds received them. The survey, conducted by Global Strategy Group, also found that almost half of the minority owned business that were surveyed anticipated needing to permanently close in the next six months.
A separate survey released in April by Builders + Backers and Her Corner similarly reported that almost 3 million women owned businesses were unable to receive PPP funds, and when they did ask for funds they received less than the national averages.
Cuban’s offer also comes at a time the economy continues to reel from the financial impact of the extended national shutdown. With some reports showing as much as $1.3 trillion of worker earnings being washed away of the past few months, and unemployment climbing towards 20%, America’s workforce is suffering a historic contraction. Additionally, a staggering number of business have been closing, with the National Bureau of Economic Research reporting that over 100,000 U.S. businesses have folded since the start of the pandemic.
With the next federal stimulus bill stalled in Congress, and Fed Chief Jerome Powell testifying to Congress that Federal Reserve “may need to do more, and Congress may as well,” if the U.S. economy is to navigate through the worst economy since the Great Depression, it is increasingly clear this is an all-hands-on-deck moment to help struggling businesses stay afloat.
It appears that for now, Mark Cuban is set on doing his part. As he tweeted on Wednesday – “Let’s get that money.”