Small Business Lending – Enforcement Gaps And Possible Solutions

Just Economy Conference – May 13, 2021


The COVID-19 pandemic had a devastating impact on small businesses, and disproportionately hurt minority-owned small businesses. The government provided aid in a variety of ways, including the creation of the Paycheck Protection Program and extending credit modifications, but there still remains a need for additional assistance and regulatory changes in order for businesses to weather this ongoing storm. Evidence of discrimination by financial institutions has been repeatedly found by NCRC’s small business mystery shopping tests, but there has been limited enforcement action implemented to ensure equal access to aid and additional credit products for small businesses. Stakeholders at all levels have a role to play in working towards solutions for businesses damaged by the economic downturn. Join us for a panel discussion with speakers from federal, state, academic and advocate organizations on the gaps in lending enforcement today and possible solutions to increase oversight of fair lending practices.

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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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