Since the beginning of the federal government's small business relief effort, watchdogs have raised concerns that black- and minority-owned businesses may be left out, citing a history of unfair lending.

According to a 2017 report from the Federal Reserve, almost 54% of black-owned enterprises that applied to banks for credit were denied. That’s compared to 25% for white-owned firms. 

When the Small Business Administration rolled out the Paycheck Protection Program in April, it assigned loan processing to the banks. But the Center for Responsible Lending said more than 90% of black owned businesses don’t have a close relationship to a bank.

A month later, it's unclear if black- and minority-owned businesses have had equal access to those loans. A spokeswoman for the Center for Responsible Lending said the federal government hasn't given out a breakdown of loan recipient demographics and may not even be collecting that data. 

But some businesses aren't waiting on banks. 

Melba Wilson has owned the restaurant Melba’s in Harlem since 2005. She applied for the PPP through her bank and never heard back. So she decided to go to a Community Development Financial Institution — not-for profit lenders known as CDFI's — and was approved for a loan within days.

“If I had not gone to a CDFI I would not have received the funding,” Wilson said. “I would be like so many of my peers still waiting or being told no. There’s no doubt about it.”

The lender that processed her application is called TruFund. Its CEO, James Bason, said since the feds opened up the PPP for a second round of funding this week, his institution has received a lot of applications from businesses like Melba’s that hadn’t heard back from their banks the first time around. 

Joanne Canady-Brown owns a bakery called The Gingered Peach in Lawrenceville, New Jersey. She first applied for the PPP loan through her bank and never heard back, so for the second round she’s applied through the credit card processing company Square. Her application hadn't been approved as of Friday. 

During the shutdown, she's closed normal operations and has been surviving by holding an online bake sale every two weeks. Canady-Brown said the sales have allowed her to pay her bills through June.

“That’s such a message to send as a community. That people want to support us and want us to be there so bad that they will refresh our website 100 times on launch day so that they can be the first to get their order in,” she said. “And that’s what gives me hope that we can get out of this.” 

In total, the federal government has allocated $650 billion for all of the small businesses in the country. But even places that have received PPP funding said it won't be a solution to all their problems.

Joseph Plaskett Jr. is the second generation owner of Hairstyling by Joseph, which was founded in 1961. Plaskett applied for the PPP through his bank and was actually approved. But the loan was only for a few thousand dollars, not nearly enough to cover his bills and rent for as long as he remains closed. 

“From my standpoint, I’m not sure I’m going to open up again,” Plaskett said.

Plaskett said he’s hoping to receive a Federal Disaster Relief loan to keep his salon alive.

Bason, the CEO of TruFund, said his institution is still processing loans but could run out of funds as early as Friday. Yet he’s telling businesses to prepare all their financial records and not despair.    

“I do believe there will be another round of funding,” he said. “It may not mimic PPP. But there will be more funding coming soon. And you really need to align yourself with what your capital needs will be going forward. You really have to know that.”

The New York City Council and Small Business Services are also depending on a third round because there is not enough funding locally.