Using Technical Assistance to Improve Minority and Rural Small Business Access to Capital

Minority owned small businesses face more challenges in obtaining capital than other small businesses. As stated in the PayPal-funded report, Reducing the Racial Financial Health Gap: The Opportunity for Responsible Fintech, “Black-owned small businesses have faced huge challenges in credit availability, which contributes to the racial disparities in income, financial health, and wealth. The COVID-19 crisis has exacerbated the problem, with government programs like the Paycheck Protection Program largely failing to help….” Rural businesses often face the same challenges. Lack of access to capital requires small-business owners to use and deplete personal resources and to rely on friends and family. This makes wealth creation even more challenging for this population.

Project REACh

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