How Systems and Policies Like PPP Loans Target and Trap Marginalized Black Communities

Who’s Likely to Get Affected the Most?

No matter the crisis, loans are never made so accessible—and they shouldn’t be. The government knew exactly what kind of fallout could result from the PPP loan program with how easy it was to access. This wasn’t an oversight; this was by design.

The Paycheck Protection Program (PPP) may have been presented as relief for struggling business owners during the pandemic, but the way it was structured set vulnerable communities up for failure. I grew up in an upper-middle-class Black neighborhood, and even there, I didn’t hear about these loans until after the chaos began. What I did notice is how disproportionately these loans were promoted in low-income and marginalized Black communities, areas that lacked a significant number of business owners to even benefit from them.

Banks in these neighborhoods pushed PPP loans that required little to no oversight—no proper background checks and no real verification of business ownership. The application process made it easy for desperate people to get caught in a trap. It wasn’t just unnecessary; it was intentional.

Much like how drugs were pushed into Black communities in the past, the information on these loans being distributed and  the lack of guardrails wasn’t an accident. It was a calculated move, hidden in plain sight within the policies. These systems are built to make people ensnare themselves, much like how law enforcement sets traps in sting operations.

A Familiar Pattern

The way PPP loans were distributed mirrors a pattern we’ve seen time and time again: systemic policies that appear neutral on the surface but are weaponized against marginalized communities. The War on Drugs wasn’t about solving addiction; it was about destabilizing Black neighborhoods under the guise of justice. Similarly, PPP loans weren’t just about helping struggling businesses, they created conditions that disproportionately harmed Black communities.

People ask, “Why are so many Black people committing fraud?” But the better question is: Why were these loans promoted in areas where people lacked the resources and knowledge to navigate them safely? When you’re living in survival mode, you don’t stop to ask why the process is so easy. You just see an open door and hope it’s your chance to get ahead.

And the consequences are devastating. There are cases of people facing decades in prison for as little as $20,000 in PPP fraud. This isn’t just punishment; it’s a deliberate attempt to break apart families and destabilize already vulnerable communities. Black people weren’t the only ones committing fraud, but they’re the ones most frequently shown in the media. That’s no coincidence. It’s part of the same divide-and-conquer strategy that’s been used for generations.

 Root Causes

When systemic traps like this are laid, they often exploit deep-rooted financial limitations in these communities—generational poverty, lack of access to resources, and constant economic pressure. It’s no wonder the bait gets taken. But acknowledging this isn’t about shirking responsibility. It’s about addressing the root causes that create these conditions in the first place.

Moving Forward

Learning to move beyond limitations instead of thinking of them as something set in stone.

1. Recognize the Patterns: When something seems too easy or too good to be true, we have to pause and question it. These systems are designed to exploit desperation if fallen into that kind of trap, and we therefore need to stay vigilant.

2. Demand Accountability: Not just for individuals but for the policymakers and institutions that create these traps. More importantly however, we need to be better informed as a community regarding these types of things. We need to continue to highlight the structural flaws and systemic biases  embedded in the rollout of programs like PPP and continue to educate each other.

3. Support Each Other: Share knowledge, build networks, and watch out for one another. If we see someone walking into a trap, we need to step in and offer guidance.

4. Redefine the Narrative: We cannot let systems define Black people as the problem. Instead, we must define ourselves as the solution. By building stronger, more informed communities, we can rise above these policies designed to harm us.

This is about more than PPP loans—it’s about recognizing and dismantling the systems that exploit our communities. We’ve seen these patterns before, and we have the power to break them. The key is not just surviving these policies but rising above them and creating something better for the next generation.

No more falling for the bait. No more being the easy target. It’s time to take the wheel and chart our own path forward.

https://youtu.be/MpvODWMtio4