NCRC Releases Small Business Lending Study (July 2010)

The study finds a positive correlation between small business lending and employment. The study also reveals troubling racial inequalities in small business lending. In fact, our analysis finds that counties with greater percentages of minorities had lower rates of small business lending and employment.

The NCRC study looked at 2006 lending data for dozens of counties around the country. Some of the specific findings in NCRC’s study include:

  • There is a positive correlation between small business lending and employment; the more small business lending in a county, the higher the employment rate.
  • Almost 55 percent of the small businesses studied received loans in counties with less than 20 percent African Americans. This ratio declined to 48 percent in counties with 30 percent or more African Americans, on average.
  • Employment rates are lower in counties with higher percentages of minorities and African Americans. The average employment rate is 2 percentage points higher for counties with less than 20 percent African Americans than in counties with more than 30 percent African Americans.

We urge you to share this study with your member of Congress; tell them CRA is good business, and good for small businesses!

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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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