Disinvesting, Discouragement and Inequity in Small Business Lending
National Community Reinvestment Coalition
First published September 2019
Better-qualified black and Hispanic testers who shopped for small business loans at Los Angeles area bank branches were treated worse than less qualified white testers, a new study found.
The study, from the National Community Reinvestment Coalition (NCRC), also found steep declines in government-backed lending to black business owners between 2008 and 2016.
Together, the tests and data reveal a troubling pattern of disinvestment and discouragement to small businesses as a whole and inequitable treatment for black and Hispanic entrepreneurs in particular.
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