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Forbes: How CDFIs Can Maximize Their Impact On The Country’s Economic Recovery

Forbes, May 20, 2021, How CDFIs Can Maximize Their Impact On The Country’s Economic Recovery

Women- and minority-owned businesses — and Black-owned businesses in particular — have been disproportionately hurt by the Covid-19 crisis.

In a study akin to a “mystery shopper” experiment, the National Community Reinvestment Coalition found discrimination throughout multiple phases of the loan application process. During 43% of their tests, a white applicant was treated more favorably than a Black applicant whether it was through encouragement for applying, the products offered or the breadth of helpful information provided by the bank.

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Redlining and Neighborhood Health

Before the pandemic devastated minority communities, banks and government officials starved them of capital.

Lower-income and minority neighborhoods that were intentionally cut off from lending and investment decades ago today suffer not only from reduced wealth and greater poverty, but from lower life expectancy and higher prevalence of chronic diseases that are risk factors for poor outcomes from COVID-19, a new study shows.

The new study, from the National Community Reinvestment Coalition (NCRC) with researchers from the University of Wisconsin–Milwaukee Joseph J. Zilber School of Public Health and the University of Richmond’s Digital Scholarship Lab, compared 1930’s maps of government-sanctioned lending discrimination zones with current census and public health data.

Table of Content

  • Executive Summary
  • Introduction
  • Redlining, the HOLC Maps and Segregation
  • Segregation, Public Health and COVID-19
  • Methods
  • Results
  • Discussion
  • Conclusion and Policy Recommendations
  • Citations
  • Appendix

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