Presumptive Democratic nominee Joe Biden on Tuesday unveiled a new plan to reduce the racial wealth gap, allocating public spending towards business creation in minority communities. The plan, titled "Build Back Better by Advancing Racial Equality Across the American Economy," hopes to build a more inclusive economy, as Blacks and Latinos are disproportionately affected by the COVID-19 pandemic.

“To address the racial wealth gap, the opportunity gap, and the jobs gap for Black and Brown people, Biden will launch a historic effort to empower small business creation and expansion in economically disadvantaged areas — and particularly for Black-, Latino-, AAPI-, and Native American-owned businesses,” a blog post about the plan read.

The plan would create a new $30 billion Small Business Opportunity Fund, providing “new capital and opportunities for small businesses that have been structurally excluded for generations.” This $30 billion fund would then be leveraged to make $150 billion available for these minority entrepreneurs.

In addition, Biden wants to allocate $50 billion in spending to help minority entrepreneurs start businesses in disadvantaged areas.

The Biden administration would also encourage homeownership by creating a $15,000 federal tax credit to assist low- and middle-income families afford their first homes. The plan hopes to tackle the “affordable housing crisis” by building 1.5 million new homes and public housing units.

Black and Latino communities have seen their economic prospects devastated by the ongoing pandemic. In June, Black unemployment reached 15.4%, while Latino unemployment hit 14.5%.

Biden’s plan comes as Americans call for racial justice following the death of George Floyd. Biden has also recently unveiled progressive plans to make senior care and child care more affordable.

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