PPP data shows loans flowed mostly to businesses in wealthy White communities
The government’s flawed COVID relief program underscored the need for equity in small business financing, and for stronger enforcement of fair lending laws.
small business lending
NCRC Initial Analysis of Federal Reserve’s ANPR on the Community Reinvestment Act: A Step Forward but Needs to be More Rigorous
The Federal Reserve Board has issued an Advance Notice of Proposed Rulemaking (ANPR) on the Community Reinvestment Act (CRA). The ANPR proposes to build upon the existing CRA exam structure of separate tests for retail and community development activity.
NCRC Hires Tom Feltner as New Director of Policy
The National Community Reinvestment Coalition has hired Tom Feltner as Director of Policy. He will lead NCRC’s policy agenda and advocacy in pursuit of a Just Economy.
Could Adequate Small Business Lending Data Be on the Horizon?
Proper implementation of Section 1071 of the Dodd-Frank Wall Street Reform and Consumer Protection Act would reveal who is receiving small business loans and where they are located.
NCRC applauds Court-Ordered Implementation for Section 1071 of the Dodd-Frank Act
The Consumer Financial Protection Bureau (CFPB) filed a settlement agreement with the U.S. District Court for the Northern District of California that outlines court-ordered deadlines for implementation of Section 1071 of the Dodd-Frank Act.
Trump’s Annual Budget Proposal Bad for Economic Justice
Today, the Trump Administration released its FY 2021 budget proposal, which would either eliminate or drastically reduce funding for numerous federal housing and community development programs that help lower-income families climb into the middle class.
Community Leaders Speak Up Against Proposed Changes to CRA
“We know our community leaders are extremely well-informed and understand both the dangers of the proposed rule changes and also the vagueness of some of the most important details,” said Jesse Van Tol, NCRC’s CEO.
Proposed Changes to the Community Reinvestment Act Will Be Disastrous for Low- and Moderate-Income Communities
The government’s plan to change how it enforces the Community Reinvestment Ac is “fundamentally flawed” and will significantly weaken the law, according to analysis of the proposal by the National Community Reinvestment Coalition (NCRC).
Do CRA Exams Measure Retail Lending Well?
As we get closer to proposed changes to the Community Reinvestment Act (CRA), a sober assessment of the effectiveness of various parts of CRA exams will help us react to the proposed changes.
Recent Research Shed Light on Minority Discouragement in Bank Small Business Lending
There have been multiple research reports recently that focused on the importance of lending for small businesses and provided a catalyst for further discussion.
National Community Reinvestment Coalition’s written testimony for the U.S House committee on financial services field hearing in Houston, Texas, September 4, 2019
Our results show a pattern of disinvestment and discouragement that contributes to the wide disparities in small business ownership for blacks and Hispanics in the U.S.
Tests show inferior treatment of minority business owners at banks, and data shows a steep decline in government-backed lending to black entrepreneurs
Better-qualified black and Hispanic testers who shopped for small business loans at Los Angeles area bank branches were treated worse than less qualified white testers, a new study found. The study, from the National Community Reinvestment Coalition (NCRC), also found steep declines in government-backed lending to black business owners between 2008 and 2016.
Bank branches are still essential for small business communities
Bank branches matter. Countering the overwhelming messaging from many banks and even some regulators, the National Community Reinvestment Coalition (NCRC) has published several reports over the years that detail how much branches still matter for consumers and communities, even in 2019. Just look at the number of branches that banks opened in the last year, and it is clear that they also know the value of a physical outpost in the community they want to serve.
Small business lending data is the iceberg in our economic ocean
In September 2018, the Federal Deposit Insurance Corporation (FDIC) released the results of a survey of 1,200 banks on small business lending in America. It found that small business lending is threatened by the decline of smaller banks and the reduction of bank branches in many communities. But just as revealing was what the survey didn’t find. More information that would be essential for policy and regulatory decisions remains concealed, invisible to the public.
American Banker: Mystery shoppers search for signs of discrimination in business lending
NCRC has secured a grant from the W.K. Kellogg Foundation to probe banks’ small-business lending practices. It follows a 2017 pilot study in which the group found that white shoppers posing as business owners were three times more likely to be invited for follow-up appointments than their black counterparts and twice as likely to be offered help in completing loan applications.
