The information presented by Forbes is according to a report from the New York Fed, which showed that these enormous numbers of business closings were accrued by the end of April. The same report demonstrated that black-owned small businesses were almost twice as likely to close than white-owned small businesses.
Overall, the business decline was noted in significant numbers in the report, with a decrease in active business owners hitting 22% between the months of February and April of this year. However, non-white owned businesses showed more significant drops. Here’s a breakdown:
- White-owned companies declined by 17%
- Asian-owned companies declined by 26%
- Latin-owned companies declined by 32%
- Black-owned companies declined by 41%
According to the New York Fed, the reason for this disparity in business closings is due to a number of reasons, including a lower percentage of black-owned businesses receiving coronavirus payment relief and coronavirus infection rates being higher in areas with a higher percentage of black-owned companies.
As coronavirus numbers continue to rise in the United States, the economy as a whole is struggling. Many retail stores have shuttered or declared bankruptcy since the beginning of this year. The U.S. has also seen a steep decline in sales within the airline industry. According to the New York Times, as of today, there are over five million cases of coronavirus and over 160,000 deaths.
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