In the News

New research suggests that Black business owners seeking PPP loans are treated less favorably than white applicants. The study, conducted by the National Community Reinvestment Coalition, used match-paired testers, a common method for showing discrimination in housing, lending and employment.

New research suggests that Black business owners seeking PPP loans are treated less favorably than white applicants. The study, conducted by the National Community Reinvestment Coalition, used match-paired testers, a common method for showing discrimination in housing, lending and employment.

In June, the National Community Reinvestment Coalition reported that Boston is the third most gentrified city in the U.S., with 21.3% of Boston neighborhoods being gentrified between 2013 and 2017.

Using a match-paired testing technique where White and Black borrowers discussed the same loan at the same Washington-area bank, the National Community Reinvestment Coalition and a team of academics found that Black applicants received discriminatory treatment 43% of the time.

A recent study from the National Community Reinvestment Coalition shows that lending discrimination played a role in the distribution of PPP funds.

As part of a study by the National Community Reinvestment Coalition, a nonprofit in Washington, D.C., university researchers sent pairs of potential borrowers with almost identical credit and asset characteristics to multiple Washington-area banks to ask about coronavirus relief; the only significant difference between the borrowers was their race.

It was conducted by the National Community Reinvestment Coalition, a nonprofit in Washington, in partnership with researchers from universities in Utah and New Jersey.

Community groups like the National Community Reinvestment Coalition, the California Reinvestment Coalition and legal oversight group Democracy Forward agree that the administration has been keen on gutting the CRA.

A recent study by the National Community Reinvestment Coalition found that White applicants were more likely to be encouraged than Black applicants when applying for loans.

Stella Adams, a housing advocate and retired chief of equity and inclusion for the National Community Reinvestment Coalition in Durham, North Carolina, called for “reparations in the form of affirmatively fair housing actions that would increase Black homeownership, through soft seconds on loans, allowing tenant ownership of multifamily housing, enforcing Section 3, and supporting local Black businesses through contracts and grants.“

A study released Wednesday by the National Community Reinvestment Coalition on the PPP, criticized using banks as the conduits for the loans and that African Americans with similar or better financial profiles than whites were still less likely to be approved for the funds.

The study, conducted by the National Community Reinvestment Coalition, found that when black and white applicants with similar credit characteristics applied to a lender, 43% of white applicants were treated more favorably than their black counterparts.

The study by the National Community Reinvestment Coalition used a match-pair “mystery shopper” test, where a Black and a White applicant with nearly identical business profiles and strong credit histories would contact the same bank. In 27 of the 63 cases, White business owners received more favorable treatment than the Black business owners.

“It shows that borrowing while Black is still a hazard,” said Jesse Van Tol, the CEO of the NCRC, the study’s sponsor.

Several companies within the industry, including the American Banking Association, the National Community Reinvestment Coalition and the National Housing Conference, expressed concern about data collection challenges and the effect they would have on lower-income communities.