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.
Since 1980, the number of commercial banks has dropped from 14,400 to 4,600. Given the decrease in commercial banking options, it is important to understand the long-term trends of banking industry dynamics by size of bank, as well as the impact of small business lending on bank growth and small business success. This report finds a decline in bank dynamism with falling new bank entry rates and increasing exit rates for small banks. Additionally, the authors found that small business loans are positively associated with the growth of small banks and small business success. Read “Effects of Small Loans on Bank and Small Business Growth” to learn more.
A new issue brief from the Office of Advocacy, “The Effects of the COVID-19 Pandemic on Small Businesses,” examines the effects of COVID-19 on small businesses using the first sets of available economic data. The economic impact of the pandemic varied from place to place, with metropolitan and coastal areas hardest hit. Additionally, some industries suffered more than others, with the largest declines in restaurant and taxi and limousine services. Disproportionate metropolitan impacts contributed to differences across demographic categories, with Black and Asian business owners suffering the most.
As the pandemic disproportionately affects small businesses and communities of color, the new administration and Congress are currently debating a range of policy responses. Yet there is a gap in available data reflecting absolute and relative experience and policy preferences of AAPI-, Black-, Hispanic- and Native-owned small businesses. Reimagine Main Street fielded a national survey of small business owners from January 7-27, 2021 to provide timely insight into issue priorities and policy preferences of samples of AAPI-, Black-, Hispanic-, and White-owned businesses.
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.
The National Women’s Business Council (NWBC) released its 2020 #LetsTalkBusiness Roundtable Series Report, a collection of testimonials from women entrepreneurs on current challenges and opportunities associated with access to capital, childcare, and patenting and trademark.
The publication of this report seeks to document the toll the COVID-19 pandemic took on small businesses in 2020. At the time our survey was fielded, six months into the pandemic, closures, layoffs, depressed revenue, and uncertainty continued to plague small businesses across the country. Small business debt mounted and business owners plowed their personal savings into their firms to keep them afloat.
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.
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.
The Nonemployer Statistics by Demographics series (NES-D) provides information on the demographic characteristics of nonemployer businesses.