Today, African-Americans constitute approximately 2 percent of loan approvals in the SBA’s 7(a) program – its most common loan program – versus 5 percent for Hispanic, 23 percent for Asian, and 70 percent for white borrowers.”
JP Morgan Chase
“A 2017 study from the Federal Reserve Banks of Atlanta and Cleveland found that black businesses owners apply for funds at a 10 percent higher rate than white-owned firms, but their approval rates are nearly 20 percent lower.”
Mother Jones
“Looking at just firms that were approved for at least some financing, when comparing minority– and nonminority–owned firms with good personal and/or business credit scores, 40% of minority–owned firms received the full amount sought compared to 68% of nonminority–owned firms.”
Federal Reserve Bank of Cleveland
“In the previous five years, 46% of white-owned businesses with employees accessed credit from a bank, and 6% accessed credit from a credit union. During that same time, just 23% of Black-owned employer firms accessed credit from a bank.”
These disparities put them at a distinct disadvantage when accessing PPP funds through banks.”
Center for Responsible Lending
“According to research by theUniversity of California Santa Cruz, there were 1 million black-owned businesses in the U.S. in February. By mid-April, 440,000 black businesses closed for good.
That’s a 41 percent plunge. Compared to white-owned businesses, 17 percent closed during that same time period.”