{"id":136162,"date":"2021-04-25T09:00:03","date_gmt":"2021-04-25T09:00:03","guid":{"rendered":"https:\/\/publicintegrity.org\/?p=100004"},"modified":"2021-04-25T09:00:03","modified_gmt":"2021-04-25T09:00:03","slug":"how-we-analyzed-ppp-loans-in-kansas-city","status":"publish","type":"post","link":"https:\/\/radiofree.asia\/2021\/04\/25\/how-we-analyzed-ppp-loans-in-kansas-city\/","title":{"rendered":"How we analyzed PPP loans in Kansas City"},"content":{"rendered":"\n<p>The Center for Public Integrity used multiple datasets in the analysis for <a href=\"https:\/\/publicintegrity.org\/health\/coronavirus-and-inequality\/kansas-city-redlining-businesses-pandemic-ppp\/\">our story on PPP loans in Kansas City<\/a>.<\/p>\n\n\n\n<p>The key comparison uses <a href=\"https:\/\/data.sba.gov\/dataset\/ppp-foia\">Paycheck Protection Program<\/a> data from the Small Business Administration by ZIP code alongside small employer figures from the Census Bureau\u2019s<a href=\"https:\/\/www.census.gov\/data\/developers\/data-sets\/cbp-nonemp-zbp.html\"> ZIP Codes Business Patterns<\/a>. We calculated each area\u2019s share of Kansas City small employers, firms with fewer than 500 employees. Then we determined how many more \u2014 or fewer \u2014 PPP loans each ZIP code received than it <em>would <\/em>have gotten had it received the same share of loans as its share of small employers.<\/p>\n\n\n<aside class=\"article-email-signup\">\n\n    <div class=\"article-email-signup__inner\">\n\n                    <h4 class=\"article-email-signup__head\">Investigations in your inbox<\/h3>\n        \n        <div class=\"article-email-signup__row\">\n                            <p class=\"article-email-signup__text\">A quick dive each week into our reporting on race, power and privilege.<\/p>\n            \n            <div class=\"article-email-signup__form\">\n                <!-- Begin Mailchimp Signup Form -->\n<div id=\"mc_embed_signup\">\n    <form action=\"https:\/\/publicintegrity.us4.list-manage.com\/subscribe\/post?u=8dc6eceed67f7f012462d0b12&amp;id=ffd1d0160d\" method=\"post\" id=\"mc-embedded-subscribe-form\" name=\"mc-embedded-subscribe-form\" >\n        <div id=\"mc_embed_signup_scroll\">\n\n            <div class=\"mc-field-group\">\n                <label for=\"mce-EMAIL\">Email address<\/label>\n                <input required=\"required\" type=\"email\" value=\"\" placeholder=\"you@example.com\" name=\"EMAIL\" class=\"required email\" id=\"mce-EMAIL\">\n            <\/div>\n            <div id=\"mce-responses\" class=\"clear\">\n                <div class=\"response\" id=\"mce-error-response\" style=\"display:none\"><\/div>\n                <div class=\"response\" id=\"mce-success-response\" style=\"display:none\"><\/div>\n            <\/div>\n            <!-- real people should not fill this in and expect good things - do not remove this or risk form bot signups-->\n            <div style=\"position: absolute; left: -5000px;\" aria-hidden=\"true\"><input type=\"text\" name=\"b_8dc6eceed67f7f012462d0b12_ffd1d0160d\" tabindex=\"-1\" value=\"\"><\/div>\n            <div class=\"clear\"><input type=\"submit\" value=\"Join\" name=\"subscribe\" id=\"mc-embedded-subscribe\" class=\"btn\"><\/div>\n        <\/div>\n        \n        <!-- The Watchdog group -->\n        <input type=\"hidden\" value=\"4294967296\" name=\"group[16933][4294967296]\" id=\"mce-group[16933]-16933-0\">\n        <!-- The Moment group -->\n        <input type=\"hidden\" value=\"8589934592\" name=\"group[16933][8589934592]\" id=\"mce-group[16933]-16933-1\">\n        \n    <\/form>\n<\/div>\n<!--End mc_embed_signup-->\n            <\/div>\n\n        <\/div>\n    <\/div>\n<\/aside>\n\n\n\n<p>There\u2019s no way to determine what percentage of eligible businesses received a loan. That\u2019s because entrepreneurs without employees can apply for help from the PPP, too, and the Census Bureau doesn\u2019t track their numbers by ZIP code. But our comparison shows which areas got a lot of access to the program, or just a little, compared with their employer base.<\/p>\n\n\n\n<p>Public Integrity also relied on<a href=\"https:\/\/www.census.gov\/programs-surveys\/geography\/guidance\/geo-areas\/zctas.html\"> census demographic figures<\/a> and \u201credlining\u201d maps from the<a href=\"https:\/\/dsl.richmond.edu\/panorama\/redlining\/\"> University of Richmond<\/a>, which led a team that digitized documents from the federal Home Owners\u2019 Loan Corp. These detail the U.S. government\u2019s Depression-era redlining grades around the country.<\/p>\n\n\n\n<p>This practice hardened patterns of real estate discrimination, with long-lasting effects. As the University of Richmond notes on its \u201c<a href=\"https:\/\/dsl.richmond.edu\/panorama\/redlining\/#loc=5\/39.1\/-94.58&amp;text=intro\">Mapping Inequality<\/a>\u201d site, \u201cHOLC assumed and insisted that the residency of African Americans and immigrants, as well as working-class whites, compromised the values of homes and the security of mortgages.\u201d<\/p>\n\n\n\n    <div class=\"related-articles\">\n        <div class=\"related-articles__inner\">\n            \n                <h3 class=\"related-articles__head\">Related Articles<\/h3>\n                        <ul class=\"related-articles__items\">\n                                    <li class=\"tz-related\">\n\n                        <div class=\"tz-related__text\">\n\n                                                            <h4 class=\"tz-related__topic\">\n                                    <a class=\"tz-related__topic-link\" 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href=\"https:\/\/publicintegrity.org\/topics\/health\/coronavirus-and-inequality\/\">Coronavirus and Inequality<\/a>\n                                <\/h4>\n                            \n                            <h3 class=\"tz-related__title\">\n                                <a class=\"tz-related__title-link\" href=\"https:\/\/publicintegrity.org\/health\/coronavirus-and-inequality\/paycheck-protection-program-deadline-runs-out\/\">What to know about the Paycheck Protection Program before your chance to get it runs out<\/a>\n                            <\/h3>\n\n                            <p class=\"tz-related__read\">\n                                <a class=\"tz-related__read-link\" href=\"https:\/\/publicintegrity.org\/health\/coronavirus-and-inequality\/paycheck-protection-program-deadline-runs-out\/\">Read\n                                    <svg>\n                                        <use xlink:href=\"#arrow-small\"><\/use>\n                                    <\/svg>\n                                <\/a>\n                            <\/p>\n                        <\/div>\n\n                        <div class=\"tz-related__image\">\n                            <a class=\"tz-related__image-link\" href=\"https:\/\/publicintegrity.org\/health\/coronavirus-and-inequality\/paycheck-protection-program-deadline-runs-out\/\">\n                                                                    <img src=\"https:\/\/publicintegrity.org\/wp-content\/uploads\/2020\/12\/AdobeStock_344450945-scaled-100x100-c-default.jpeg\" alt=\"Paycheck Protection Program (PPP) written on the mask and money.\"\/>\n                                                            <\/a>\n                        <\/div>\n\n                    <\/li>\n                            <\/ul>\n        <\/div>\n    <\/div>\n\n\n\n<p>As a result, the university said, the federal government \u201cdirected both public and private capital to native-born white families and away from African American and immigrant families.\u201d<\/p>\n\n\n\n<p>Areas colored green on HOLC maps, graded \u201cA,\u201d were deemed a good risk for bank investment. Areas given the lowest grade, \u201cD,\u201d were colored red and declared \u201chazardous\u201d for investment. In Kansas City, not all redlined areas had Black residents. But all areas with more than a handful of Black residents were redlined. Black residents still make up many of the residents in these investment-starved neighborhoods today.<\/p>\n\n\n\n<p>Public Integrity determined which ZIP code each graded area fell into, then identified each ZIP with a recorded number of Black residents at the point of redlining (that is, more than \u201cfew\u201d) and more than half of the land area graded \u201cD.\u201d Four of the five are on the city\u2019s East Side, the geographic focus of our story, and together these four received substantially less access to the PPP than if the loans had been equally distributed around the city. ZIP codes where more than half the land area was graded \u201cA\u201d or \u201cB\u201d \u2014 both west of Troost \u2014 received markedly more.<\/p>\n\n\n\n<p>So: What about that single ZIP code, 64108, that sits against the city\u2019s western boundary but was also largely graded D and had a recorded number of Black residents at the time? All but a small piece is west of Troost Avenue, which <a href=\"https:\/\/www.kcur.org\/community\/2014-03-27\/how-troost-became-a-major-divide-in-kansas-city\">became the city\u2019s de facto racial dividing line<\/a>, and it\u2019s had a different trajectory than the East Side \u2014 with far easier access to lending, including the PPP.<\/p>\n\n\n\n<p><a href=\"https:\/\/drexel.edu\/nowak-lab\/about\/staff\/Victoria%20Orozco\/\">Victoria Orozco<\/a> at Drexel University\u2019sNowak Metro Finance Lab, <a href=\"https:\/\/directory.richmond.edu\/bios\/rnelson2\/\">Robert Nelson<\/a> at the University of Richmond, <a href=\"https:\/\/bloch.umkc.edu\/faculty-directory-never-brent\/\">Brent Never<\/a> at the University of Missouri-Kansas Cityand the<a href=\"https:\/\/ncrc.org\/holc\/\"> National Community Reinvestment Coalition<\/a>\u2019s Bruce Mitchell, Jason Richardson and Jad Edlebi offered feedback and advice at various stages of the analysis.<\/p>\n<p>The post <a rel=\"nofollow\" href=\"https:\/\/publicintegrity.org\/health\/coronavirus-and-inequality\/methodology-analysis-ppp-loans-kansas-city\/\">How we analyzed PPP loans in Kansas City<\/a> appeared first on <a rel=\"nofollow\" href=\"https:\/\/publicintegrity.org\/\">Center for Public Integrity<\/a>.<\/p>\n\n<p class=\"syndicated-attribution\">This post was originally published on <a href=\"https:\/\/publicintegrity.org\/health\/coronavirus-and-inequality\/methodology-analysis-ppp-loans-kansas-city\/\">Center for Public Integrity<\/a>. <\/p>","protected":false},"excerpt":{"rendered":"<p>The Center for Public Integrity used multiple datasets in the analysis for our story on PPP loans in Kansas City. The key comparison uses Paycheck Protection Program data from the Small Business Administration by ZIP code alongside small employer figures from the Census Bureau\u2019s ZIP Codes Business Patterns. We calculated each area\u2019s share of Kansas [\u2026]<\/p>\n<p>The post <a rel=\"nofollow\" href=\"https:\/\/publicintegrity.org\/health\/coronavirus-and-inequality\/methodology-analysis-ppp-loans-kansas-city\/\">How we analyzed PPP loans in Kansas City<\/a> appeared first on <a rel=\"nofollow\" href=\"https:\/\/publicintegrity.org\/\">Center for Public Integrity<\/a>.<\/p>\n","protected":false},"author":1370,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3499,15496],"tags":[],"_links":{"self":[{"href":"https:\/\/radiofree.asia\/wp-json\/wp\/v2\/posts\/136162"}],"collection":[{"href":"https:\/\/radiofree.asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/radiofree.asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/radiofree.asia\/wp-json\/wp\/v2\/users\/1370"}],"replies":[{"embeddable":true,"href":"https:\/\/radiofree.asia\/wp-json\/wp\/v2\/comments?post=136162"}],"version-history":[{"count":1,"href":"https:\/\/radiofree.asia\/wp-json\/wp\/v2\/posts\/136162\/revisions"}],"predecessor-version":[{"id":136163,"href":"https:\/\/radiofree.asia\/wp-json\/wp\/v2\/posts\/136162\/revisions\/136163"}],"wp:attachment":[{"href":"https:\/\/radiofree.asia\/wp-json\/wp\/v2\/media?parent=136162"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/radiofree.asia\/wp-json\/wp\/v2\/categories?post=136162"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/radiofree.asia\/wp-json\/wp\/v2\/tags?post=136162"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}