UTAH POLICY, Nov. 12, 2019: USU Research Shows Discrimination In Minority- And Women-Owned Small Business Lending Practices
Utah State University research showing that minority and women applicants seeking small business loans receive poorer treatment and more scrutiny from bank lending officers was presented at a Consumer Financial Protection Bureau (CFPB) symposium on Nov. 6, in Washington, D.C.
The symposium provided a public forum for the CFPB to hear perspectives on small business lending as it pertains to Section 1071 of the Dodd-Frank Act, which requires the collection and reporting of small business lending data, including the race and gender of the small business owner.
“Small business financing is a $1.4 trillion market, according to estimates by the CFPB,” said Sterling Bone, Associate Professor of Marketing at Utah State University’s Jon M. Huntsman School of Business. “Because of discriminatory customer service, banks are leaving money on the table instead of lending to minority and women small business owners who are very well qualified.”