KSRO, July 17, 2020: Black And White Applicants Treated Differently When Seeking Small Business Aid: Study
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A new study out Wednesday found a disparity in how Black and White loan applicants were treated when seeking help for small businesses during the coronavirus pandemic.
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.
