Actions taken by businesses reporting financial challenges

- Cut staff, hours, and/or downsize operations: 54.5%

- Made a late payment or did not pay: 38.7%

- Obtained funds through grants, crowdfunding, donations, etc.: 50.2%

- Took out debt: 48.2%

- Used personal funds: 63.7%

Minority businesses don’t have as many safety nets as others do. The decisions listed here are simply not what all white-owned businesses go through when a crisis hits. Researchers at the New York Federal Reserve have the data to prove it. While 17% of businesses with white owners became inactive in April 2020, 41% of Black-owned businesses plummeted. Latino-owned businesses dropped by 32%, and Asian owners came in at 26% lower.

Businesses who didn’t have to go completely inactive had savings, trusted banks ready to loan them money, better connections to those who give grants and donations, and likely had better credit.

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