HuffPost: Chicago Small Businesses Need Better Lending Options

HuffPost December 15,2017: Chicago Small Businesses Need Better Lending Options

The National Community Reinvestment Coalition found that black-owned businesses received just 2.3 percent of Small Business Administration loans in 2013—down 8.7 percent from 2008. Women don’t fare much better. A poll last summer found that just 30 percent of women-owned companies were able to get a bank loan during the previous three months, compared to half of all owners survey.

We believe that new tools like SimpleGrowth are a big part of the solution to this problem. When small business owners are connected with responsible lenders, better resources and support services, capital flows more freely and more fairly, meaning businesses can grow and communities can thrive. When that happens, all of Chicago shares in that success.

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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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