The Paycheck Protection Program included guidance from the SBA to prioritize loans to businesses owned by socially and economically disadvantaged individuals. Yet an October 2021 research paper, published by a group of New York University professors, found a disparity in the approval of PPP loans to Black-owned businesses. These differences in approval rates are not explained by factors like pre-existing bank relationships or applicant behavior. The paper’s authors suggest that preference-based discrimination occurs — and automation can make lending more equitable . . .
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