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Landmark Study Reveals Significant Progress in SBA 7(a) Lending to Black Entrepreneurs
Data on the Small Business Administration's 7(a) loan program shows an increase in lending to Black or African American business owners.
In 2017, 3.86% of SBA 7(a) loans were disbursed to Black business owners. By 2023, this figure had surged to 7.76%. The percentage of total loan value received by Black entrepreneurs climbed from 2.36% to 4.41% over the same period.
"We are heartened by these findings," says William Michael Cunningham, CEO of Creative Investment Research, "which signal the tangible progress we've been striving for. They also underscore the critical work that remains in order to achieve true equity in small business financing."
While the study's results clearly illustrate a trend towards greater inclusivity, they also highlight the need for continuous and focused efforts. The gap between the proportion of the Black population in the U.S and the percentage of total loan dollars they receive serves as a stark reminder of the ongoing challenges.
The team behind the study suggests several measures to sustain and accelerate this upward trajectory. These include increased outreach in Black communities, financial literacy programs (see How to Finance a Black Women-owned Business on Udemy), eliminating lending biases, leveraging fintech, enacting supportive government policies, and bolstering the capabilities of Black-owned banks.
"We envision a future where the entrepreneurial landscape allows equal access to funding opportunities, regardless of race," Mr. Cunningham adds. "These findings inspire us to redouble our efforts to make this vision a reality."
The study, a collaborative effort by Creative Investment Research and it's subsidiary, MinorityFinance.com, offers a comprehensive analysis of SBA 7(a) lending trends over recent years, underlining the program's potential to contribute to a more equitable entrepreneurial environment. The full report is available via email request to email@example.com.
About Creative Investment Research: Founded in 1989, https://creativeinvest.com/
Creative Investment Research
William Michael Cunningham
Page Updated Last on: Jun 18, 2023