Today, the California Reinvestment Coalition released our fourth report analyzing the extent to which small businesses, especially those owned by women and minorities, are able to access critical loans from California’s largest banks.
Banks tightly restricted their lending as a result of the housing crash. Despite hundreds of billions of dollars in subsidies from the federal government, banks are still hoarding their cash and not lending it to small businesses who historically have created 2 our of every 3 new jobs in the U.S.
A few statistics from our report today:
- Only 2% (96 loans) of SBA 7a loans were made to businesses owned by African-Americans, 11% to Latinos (634 loans), and 14% to women (846 loans) in California for Federal Fiscal Year 2013.
- Where overall SBA lending by the five banks dropped by 59 percent from 2007 to 2013, their lending to Latino-owned, African American-owned, and Asian- owned businesses dropped more dramatically– at 63 percent, 85 percent, and 64 percent, respectively.
- Thirty percent of California businesses are owned by women and slightly over half of the population is women, however, loans to women-owned small businesses dropped from roughly twenty percent of all SBA 7a loans in federal fiscal year 2007 to just above fourteen percent in 2013.
The full report is available here: Small Business Access to Credit- The Little Engine that Could: If Banks Would Help
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