KSRO: Black And White Applicants Treated Differently When Seeking Small Business Aid: Study
“It shows that borrowing while Black is still a hazard,” said Jesse Van Tol, the CEO of the NCRC, the study’s sponsor.
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“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.
Until 2010, it was prohibited to collect gender and demographic data for small business loans, said Jesse Van Tol, CEO of the National Community Reinvestment Coalition (NCRC), an association of community-based organizations around the country whose work champions fairness in housing, banking and business.
“The OCC went against the majority of public comments and introduced new, gaping loopholes into the rules that will allow banks to reduce their focus on lower-income borrowers and communities: the very communities the law was intended to protect,” said NCRC’s Jesse Van Tol.
Hartford Courant: OCC ‘fix’ weakens redlining law Read More »
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.
“It shows that borrowing while Black is still a hazard,” said Jesse Van Tol, the CEO of the NCRC, the study’s sponsor.
“These differences in treatment between white and Black testers are particularly troubling because the combined effect of these various differential treatments may lead to feelings of discouragement and despondency among minority entrepreneurs in the financial marketplace,” the researchers wrote.
USA News Hub: Black Business Owners Had a Harder Time Getting Federal Aid, a Study Finds Read More »
A nonprofit sent Black and white “mystery shoppers” to branches of 17 banks, where they asked for loans under the Paycheck Protection Program. White customers got better treatment.
“The tests show that old patterns of systemic discrimination in lending didn’t magically disappear when banks made PPP loans,” said Jesse Van Tol, CEO of NCRC. “Banks still have a long way to go to root out discrimination, and clearly they need better training for their employees and more testing to create internal checks and internal pressure to drive out racist practices.”
Politico: Black applicants faced discrimination in securing PPP loans, study finds Read More »
Cities could also take action by revising their zoning policies to promote more diversity and inclusion, said Jesse Van Tol, CEO of the National Community Reinvestment Coalition.
McMorris, a Washington, D.C.-based real estate developer and civil rights activist, has formed a new property redevelopment firm meant to right the wrongs of redlining, in partnership with the National Community Reinvestment Coalition.
Assuming that all banks want to pass their CRA exams, switching to the NCRC’s grading system could increase community development lending from $159 billion to $187 billion, a difference of $28 billion the group said.
The bank launched the community benefits plan at the start of 2017, after developing it in cooperation with the National Community Reinvestment Coalition. The program includes loans and grants.
The Buffalo News: KeyBank invests $186 million locally under community benefits plan Read More »
Parts of the Bay Area, particularly San Francisco and Oakland, have been subject to some of the highest rates of gentrification in the nation, according to a new study by the National Community Reinvestment Coalition.
The Stanford Daily: Pandemic hits housing affordability where it already hurts Read More »
Here’s my proposal: give $20,000 to every American with an enslaved ancestor, every year, for 20 years. We can afford it
Dedrick Asante-Muhammad is the chief of race, wealth, and community at the National Community Reinvestment Coalition and an associate fellow of the Institute for Policy Studies. He is a co-author of the report White Supremacy Is the Pre-existing Condition