In 2019, only 3% of the $23.2 billion in loans from the SBA went to Black businesses
There has been an 84% national decline in lending money to Black-owned businesses since 2007 under the Small Business Administration’s small business lending program.
In Sacramento, white businesses have received more money for their businesses than all Black businesses nationally from the SBA program, Census data showed.
According to the Sacramento Business Journal, a majority-Black census shows that Black businesses nationally received $157.58 per capita in business loans compared to majority-white businesses which received $304.59 per capita locally in Sacramento alone.
Business owners in white neighborhoods like Galt, Antelope, and North Highlands received $254.67 per capita, whereas people-of-color neighborhoods like parts of Elk Grove, Meadowview and North Sacramento, some of the largest majority person-of-color neighborhoods, received $153.72 per capita.
Isn’t it ironic that people will raise MILLIONS to find crazy ways to get #Blackpeople to #vote (ie. “Get yo booty to the poll”) but won’t use any of that money for BLACK BUSINESS LOANS or to help STRUGGLING FAMILIES?
— Dr Boyce Watkins (@drboycewatkins1) September 24, 2020
The problem is not exclusive to California, states like Ohio are also facing similar issues.
The four biggest banks – Chase, Bank of America, CitiBank and Wells Fargo – gave a total of 334 loans to Black-owned businesses in 2019, a 91% decrease compared to 2007, according to the Clevend Business Journal.
In 2019, only 3% of the $23.2 billion in loans from the SBA went towards Black businesses.
While some might blame bad lending disparities for economic inequality, banks are saying one’s credit determines a person’s ability to get loans and credit issues are rampant in Black communities.
Banks have a dispute to why the data collection starting in 2007, which the year before the Great Recession hit, a time when getting a loan was perheps the easiest thing to do.
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