Black News Portal, April 27, 2024, Breaking The Cycle: Dismantling Systemic Barriers To Minority Funding Op-Ed By J. Byron Brazier
Local branches allow entrepreneurs to establish personal, trusting relationships with bankers, and those bonds can be a boon to small-business owners seeking financing. Banks consider “soft information” about business customers’ creditworthiness—qualitative data gathered over the course of a banking relationship. When branches close and those relationships falter, or never develop in the first place, entrepreneurs suffer.
In particular, the decline of smaller community banks also hurts entrepreneurs. Community banks are more likely to lend to small businesses than larger banks, according to a National Community Reinvestment Coalition report.
