Small Business and Bank Locations

The National Community Reinvestment Coalition (NCRC) analyzed the relationship between large banks that make small business loans and the number of branches those banks operate in each county in the United States.

Small Biz Struggling to Access Capital

A new national survey of small business owners sheds light on their struggles to secure financing and their views on policy solutions that could help small businesses survive and grow post-pandemic.

Loan Modifications for Small Biz in a Pandemic

The federal government’s Paycheck Protection Program provided forgivable loans to help businesses survive the COVID-19 economic collapse. But that wasn’t enough. About four million small businesses closed permanently in 2020, and many needed other options, like modifications to outstanding loans and credit card debt. New research from the National Community Reinvestment Coalition (NCRC) found that Black and Latino small business owners had less access to those options than White small business owners.

Local Small Business Lending

Lending to businesses in counties where a bank has no branches is highly sensitive to economic conditions. During the 2007 recession, distant lending contracted far more sharply than local lending, leaving the share of loans made at a distance lower than it had been at the beginning of the century. This study suggests that the presence of local bank branches might help small businesses weather economic downturns.

San Francisco Entrepreneurs of Color Fund

San Francisco Entrepreneurs of Color Fund: Creating a Continuum of Capital and Consulting The Aspen Institute First published October 2020 Structural inequities—both historical and current—have created barriers for entrepreneurs of color to build wealth and grow their businesses. The San Francisco Entrepreneurs of Color Fund (SFEOCF) seeks to address these inequities by creating a more

2019 Small Business Lending in the US

This report uses the latest publicly available lending data from banks to examine changes in small business credit for June 2017 through June 2019. The data used was collected prior to the 2020 COVID-19 pandemic and provides a precrisis benchmark on the state of small business lending.

Banks Response to Racism and COVID-19

Given the financial sector’s history of systemic exclusion and discrimination, the San Francisco Office of Financial Empowerment (OFE) and the California Reinvestment Coalition (CRC) worked together to analyze banking relief that is currently being made available to consumers and borrowers, identify gaps and best practices, and outline recommendations for financial institutions and policymakers on how to dismantle systemic racism in banking and to reimagine relief and reforms that banks should embrace.

COVID-19’s Effects in Black Communities

The effects of the pandemic on small businesses amid forced closings, modified re-openings, and weakened demand, are well documented. Black businesses experienced the most acute decline, with a 41 percent drop. This brief examines the reasons why Black firms have been almost twice as likely to shutter as small firms overall.

Lending Discrimination within PPP

Since March 2020, businesses in the U.S. have been struggling to continue operations in the face of a global pandemic. The COVID-19 pandemic has resulted in a recession because of the widespread closures of non-essential businesses enacted to reduce the spread of the virus. Even as things begin to reopen, people are less likely to go out due to possible health risks. In response, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act which created the Paycheck Protection Program (PPP). The PPP is a lending program that provides money, in a potential grant format, to small businesses to help them weather the economic effects of the pandemic. The majority of the loan needs to be allocated for employee salaries and then the remainder can be used for other business expenses like rent and loan payments. The purpose of this study was to determine whether the disparities in small business lending we have detected prior to the COVID-19 pandemic continued with implementation of the PPP program.

Impact of PPP on Small Businesses

To determine the initial effectiveness of government relief efforts, Gusto analyzed data from nearly 27,000 of our small business customers who reported receiving PPP loans and compared it to platform data from our 100,000-plus small business customers nationwide[1]. The report below shows that PPP aid has helped to provide stabilization from the initial free fall in March ‘20, with strong increases in hiring and rehiring beginning in the second half of April ‘20.