Chambers testify about their concerns. From february until april of 2020. But the closure rates for minority owned businesses are significantly higher with 41 of blackowned businesses, 32 of latino acts owned businesses and 22 of asian businesses. They closed over the same time frame. Now, in april of this year the federal return bank of new york reported that minority and women owned businesses are significantly more likely to show signs of limited Financial Health and are twice as likely to be classified as at risk for distress then nonminorities Small Businesses. Further, companies are three times likely as healthy businesses to close because of [inaudible]. The pcp program established under the cares act and administered by the Small Business administration and treasury as funding lifeline for distressed businesses responding to the culminating pandemic. What recent analysis by the color of change and the u no space United States found only one in ten African American and late latin x businesses received the requested funds through the program. I have heard from many minority owned businesses who did everything right, yet, they did not get a phone number or alone in the first place. Many minority businesses shared that the enhancement act was not adequately designed to enhance or assist Small Businesses. Thanks to the partnership of the Financial Services chairwoman Maxine Waters and Small Business chair velasquez adjustments were made in the second round of funding. On june 30 the Small Business administration announced that 4. 9 Million Dollars or loans totaling 521 billion have been granted by the ppp. Now, let me just say i look forward to hearing from our distinguished witnesses share key insights regarding the ongoing plight of minority and women owned businesses and what steps the congress and the private sector can take to ensure necessary and fair inclusion in the economy. The chair now recognizes the Ranking Member, my good friend, colleague and someone who i am delighted to see, although it is on zoom today, Ranking Member congresswoman and wagoner. I thank you, madam chairwoman. It is a light to see you in all our committee here this afternoon. Thank you for holding this hearing and i want to welcome and thank our witnesses for testifying about the obstacles that women and minority owned businesses face when it comes to accessing capital and Financial Services. When this pandemic began and visitors were forced to close the doors in order to prevent spread of the coronavirus, Congress Took swift action to stabilize the economy, keep americans employed and businesses from closing and give our healthcare workers resources they need to combat the disease. Those actions, included provided revelatory relief to lenders and access to emergency programs through the Federal Reserve and the Small Business administration. I want to highlight a few specific solutions the congress is provided during the pandemic to ensure u. S. Businesses continue to have access to the relief they need. We have lowered the Community Bank leverage ratio to give Community Banks the ability to continue lending as cash deposits have increased. Weve given fox ability to banks that would have been required to comply with the current credit loss or accounting standards, as it would have locked up billions of dollars for Financial Institutions and hindered their ability to lend to those who need assistance the most. Finally, we authorized 660 billion in forgivable loans under the Paycheck Protection Program which is supported more than 51 million american jobs and over 80 of all Small Business employees. The program included to set aside amount of 10 million for community Financial Institutions. When it comes to ensuring that women and minority owned businesses can access ppp loans and other funding im glad to see some lenders taken the initiative, lender such as j. P. Morgan chase and the bank of america have provided data highlighting their work to ensure that ppp is available to a Diverse Group of customers. For example, jp morgan set up a new program to focus on underserved on for doors in the bank of america is conducting extensive outreach to Small Business clients in low and moderate income neighborhoods to raise awareness about ppp and other loans but it is not just for nations big banks that are helping those in need. Let me tell you about what happened in st. Louis last month with a banker from the Midwest Bank Center who was getting his haircut when he overheard that the African American woman barber shop owner had taken out a 5000dollar payday loan to pay bills. The banker offered to assist her in applying for ppp loans. That interaction eventually led, most importantly, to the bank signing a deal with the National Minority supplier development, a group which helps minority owned businesses access ppp loans. I commend these professionals for their outreach and i urge other firms in the industry to follow suit if they have not done so already. Ive also introduced the ppp forgiveness act with my friend and colleague from missouri, congresswoman clay, which instructs the treasury to create or certify a loan forgiveness cap later to resolve the infusion between lenders and Small Businesses over what costs should be cap collated and to help Small Businesses. To lift and strengthened minority and womenowned businesses beyond the pandemic. These businesses benefit when we cut unnecessary costs and expand opportunities for investors to put their money to work. I thank you, madam chairwoman and i yield back. Thank you. The chair now recognizes the chair of the full committee, chairwoman Maxine Waters. It is indeed an honor for me to introduce someone who really needs no introduction. She is an advocate for the people, and as we talk about the epp plan today and of the Financial Service issues, please note that her fingerprint, or footprint are all over it and she has been recognized for her great leadership. No further words, chairwoman Maxine Waters from the great state of california, i recognize you for one minute, or as much time as you might take. Oh, my goodness. I want to thank you so much, chair beatty, for all of the work that you were doing to really get the whole discussion of inclusion and diversity in the national eyesight. Youre doing a wonderful job and i thank you for convening this important hearing, from the struggles of women and minority Business Owners face in accessing capital. Before the covid19 crisis began, as you said, minority and womenowned businesses had serious challenges accessing capital. For example, 2010 data showed my dougherty Business Owners were less likely to be approved for loans or were approved for lower loan amounts than higher Interest Rates and the white counterparts. Forbes also reported that with women and minority owned Business Owners apply for loans are often rejected due to a lack of assets caused by the widening racial and gender wealth gaps. Despite these challenges women and minorityowned businesses have grown ten times faster than all of the u. S. Small businesses. Businesses. However, we will never close the racial and gender gap and provide for expanded entrepreneurship opportunities for women and people of color until we can address these capital challenges. So i am very pleased to be here with you today and i look forward to and from our witnesses. I think our witnesses are being here and i am looking forward to hearing their views on how we can solve this challenge. Thank you, chairwoman beatty, and and i yield back the balance of my time. And thank you, madam chairwoman. Today i come to, and water to welcome the testimony of our four witnesses, mr. Ron busby, president and ceo of United States black chamber of commerce. He is a former ceo answer on, and serves on the Small Business council and white house africanamerican leadership council. Our next witness is carmen castillo, chairwoman of the board of directors of the United StatesHispanic Chamber of commerce. Carmen is also the president and ceo of Sti International corp. Which she founded in 1982. 1982. Our third witness is karen kerrigan, president and ceo of the Small Business and entrepreneurship council. Karen has been appointed numerous federal Advisory Boards including the National Womens business council, the u. S. Iraq business dialogue and the United States treasurer taxpayer advisory panel. Our final witness is jenell ross, president of bob ross automotive group. She is the only secondgeneration African American woman dealer in the country. Jenell also serves as the chair of the board of directors for the Cincinnati Branch of the Federal Reserve bank. Witnesses, you are reminded that your oral testimony would be limited to five minutes. I ask that you respect the members and other witnesses time by wrapping up your oral testimony. Without objection you a written statement will be made part of the record. Ron, you are now recognized for five minutes to give oral presentation on your testimony. Thank you. Thank you chairwoman beatty, Ranking Member wagner, and chairwoman Maxine Waters. And distinguished members of the subcommittee for the opportunity to share test when you today. Again my name is ron busby and serve as a president and ceo of u. S. Black chamber of business. The nations leading voice for black businesses across the country. We represent 145 chambers in 42 states, Membership Base of over 332,000 blackowned businesses. Advocacy, access to capital, contracting opportunities, training and chamber development. U. S. Black Chamber Better known as usdc for the past decade has been providing leadership and ethics a and the realization of Economic Empowerment for the creation of resources of initiatives we support africanamerican chambers of commerce and business organizations and the work in developing and growing black businesses. Clearly, minority and womenowned businesses are thriving critical components of the nations fast becoming. These firms collectively bride upwards of 1 trillion in annual receipts and contribute nearly 9 million jobs in the labor market. They have been the side of the fastestgrowing segment of businesses, our results great 40 of americas [inaudible] despite this extraordinary impact it is black Business Owners and entrepreneurs that history and data shows face barriers to Economic Resources and access to capital among other daunting challenges. In light of these facts we believe that strategically engineered policies can put a stop to continuing disparities experienced by blackowned businesses. Our participation in todays virtual hearing underscores the Critical Role of continued advocacy through the establishment of Public Policy that addresses continuing challenges and accessing capital and Financial Services. I mixed the Ongoing Health and economic crisis, the most disparities live in like america. We lost, the country lost 3. 3 million Small Businesses in the first and Second Quarter of the year. But the number of black entrepreneurs declined 41 , nearly 450,000 blackowned businesses were closed between the months of february and april. In addition to this disproportionate decline, black americans suffered the blood of the labor lost during the pandemic. Black unemployment peaked nearly 17 last month. Despite the number blackowned businesses located in the nations Fastest Growing market, enterprises faced Economic Development and revenue laws prior to the pandemic in part because black firms are overwhelmingly [inaudible] represented among the High Impact Industries and in part because they were already in weaker financial positions. The pandemic simply exasperated the challenges. Even though congressional action resulted in nearly 700 billion of relief, aimed to Small Businesses, this weeks sba and treasurer records show that the case of structural discrimination against black Business Owners remain prevalent. And the progress within six or 50,000 ppp loans made, about 150,000, only 143 lakh firms received a loan of that size. 90 of the members of u. S. Black chamber have reported that they found far less what they ask for, or none at all. Fortunately we hear are working to address these disparities aggregating resources and funding that breaches the gap to effective federal policy. The jumpstart recovery or Organization Recently got to the press and form of initiative titled the five lakh platforms which focus on supporting the millions of black businesses by providing grassroots assistance to the smallest black farms in one digital marketplace. We are forging ahead with a group of Industry Leading Technology partners to announce a black Business Certification Program aimed at increasing contract awards in both the federal government as well as Corporate America. These programs were put corporate and government rhetoric to the test and truly improve investment in our community. These are just a few actions of u. S. Pc has taken to ensure that black americans weather this storm. We welcome the federal legislation, not overlook black america and close expanding racial wealth gap. We welcome the challenges that the chamber has passed in years at but the importance of safeguarding the black Community Must embrace equitable policies that will include rewarding the a program, make sure that the most vulnerable and impacted lakh firms receive priorities focus between 20212026. Reauthorize the obama era clickbait initiative to guarantee that black Government Contractors are paid within 15 days and also ensure that within the discussion of a new infrastructure bill that black and local businesses are included in the contract opportunity. Reconsider the occ new proposal to certify that changes to the benefit black america and prioritize legislation that would provide black owned businesses additional access to sba loans, Educational Programs investment and startups. Finally lawmakers mustpass legislation that will quantify the into law, increase [inaudible] i will remind the gentleman his time is up but thank you very much. Thank you. Thank you. I now recognize ms. Carmen. I recognize you for five minutes to give oral presentation on your testimony. She did not hear you. Can you hear me . Yes. Thank you very much. Iq, chairwoman waters, chairwoman beatty and members of this committee for the opportunity to share testimony on behalf of the u. S. Hispanic chamber of commerce. I am the president and ceo of international, one of the largest minority and womenowned businesses in the u. S. My team is been providing Business Services to fortune 500 companies for the last 27 years. I and a hispanic immigrant. Today i am honored to represent the u. S. Hispanic chamber of commerce as as a chairwoman ofe board of elections. We are americas largest hispanic business organization. We operate as an umbrella for more than 250 local Hispanic Chambers and Business Associations nationwide. We represent over 4. 7 million Hispanic Business Enterprises that contribute an estimated 800 billion annually to the u. S. Economy. The Hispanic Community has been affected the most economically by covid19s a study made shows that 65 of latino owned companies in the u. S. Report there will not be able to continue operating beyond six months. This is the reason why 60 of latino families have lost jobs s