PayPal Holdings, Inc. (NASDAQ: PYPL) today announced an additional $5 million grant program that will further the company’s support for Black-owned businesses in the U.S., which have been disproportionately affected by the economic impacts of the COVID-19 pandemic. The new grant program is an extension of the $10 million PayPal Empowerment Grant program for Black-owned businesses that PayPal announced in June as part of the company’s $530 million commitment to support Black-owned businesses, strengthen minority communities and fight economic inequality.
“When we made our initial commitment, we understood that decisive action was needed to make progress towards economic equality and closing the racial wealth gap that has persisted for far too long in this country,” said Dan Schulman, president and CEO, PayPal. “As we witnessed the outsized and devastating impact of COVID-19 on Black businesses and communities, we knew we had to do our part to increase their opportunity to survive and thrive. With cases of COVID-19 surging and the timing of a stimulus uncertain, we are bolstering this support, which is critical to sustaining these businesses and building a path to inclusive recovery.”
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In August, PayPal, in partnership with the Association for Enterprise Opportunity (AEO), awarded $10 million in grants to 1,167 Black-owned businesses across the country to help them stabilize and reopen. These businesses will have the opportunity to receive additional grant funding, along with approximately 250 additional Black-owned businesses that qualified for funding.
The new grant program is coming at a time when small businesses are struggling to stay afloat. A recent study found that close to 40% of Black small business owners who received Paycheck Protection Program (PPP) loans have already been forced to lay off employees or cut wages due to their PPP loans being exhausted.
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