Reply #209: Discrimination in getting business loans

[Brewman_Jax]

I'm sure that most have heard the stories of black entrepreneur friends having so much more trouble getting business loans or any sort of financing than any other demographic group. This is more than simply anecdotal, it's another graphic example of institutionalized racism. Lenders like to say that black-owned businesses are more likely to fail, not pay back loans, etc., but the disparity in issuing loans by demographic group and area cannot be ignored, except for predatory lending, which no one had a problem with, but, I digress. Included is the link to the 2002 Blanchflower report on Discrimination in The Small Business Credit Market along with other articles that highlight this problem.



http://afgen.com/blkbus5.html
http://www.dartmouth.edu/~blnchflr/papers/finalrestat.pdf