Lost opportunity? Social and spatial disparities in paycheck protection program loans to U.S. small businesses

The COVID-19 pandemic severely affected small businesses across the U.S., with a disproportionate impact on small businesses in communities of color. In response, the Coronavirus Aid, Relief, and Economic Security Act (CARES) initiated by Congress included a Paycheck Protection Program (PPP) to provide emergency loans to qualifying small businesses. Although initial academic scrutiny of PPP loan distributions highlighted procedural equity concerns, no study has yet examined the social and spatial disparity of loan distributions with regard to businesses' neighborhood location and local characteristics. Using geographically weighted negative binomial and logistic regression, this paper finds that small businesses within Black and Hispanic/Latino neighborhoods were disproportionately less funded in the PPP process. While businesses located within federally designated Opportunity Zones were generally associated with higher loan amounts, businesses in Black and Hispanic/Latino neighborhoods within Opportunity Zones remained significantly less funded. Certain built environment characteristics, such as better walkability and greater employment density, were associated with higher loan amounts. These associations between loan amounts, place-based policies, the built environment, and racial/ethnic disparities raise concerns about how federal programs are capable of helping small businesses with the greatest need. Planners can and must advocate for Black and Hispanic/Latino neighborhoods regarding access to financial aid and economic support, particularly in times of crisis.