Availability of Credit to Minority-Owned Small Businesses

Availability of Credit to Minority-Owned Small Businesses PDF

Author: United States Congress

Publisher: Forgotten Books

Published: 2016-09-26

Total Pages: 234

ISBN-13: 9781333744861

DOWNLOAD EBOOK →

Excerpt from Availability of Credit to Minority-Owned Small Businesses: Hearing Before the Subcommittee on Financial Institutions Supervision, Regulation and Deposit Insurance of the Committee on Banking, Finance and Urban Affairs, House of Representatives; One Hundred Third Congress, Second Session; October 6, 1994 In conclusion, the fdic is very mindful of our responsibility to promote fair and equal opportunity for all creditworthy borrowers to have access to adequate credit at reasonable terms. We believe it is our duty to help financial institutions meet the credit needs of their entire communities, including the credit needs of minority owned small businesses, consistent with safe and sound lending principles. We believe the revised cra proposal is consistent with these objectives. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.

Availability of Credit to Minority-Owned Small Businesses

Availability of Credit to Minority-Owned Small Businesses PDF

Author: United States. Congress. House. Committe

Publisher: Hardpress Publishing

Published: 2013-12

Total Pages: 232

ISBN-13: 9781314898514

DOWNLOAD EBOOK →

Unlike some other reproductions of classic texts (1) We have not used OCR(Optical Character Recognition), as this leads to bad quality books with introduced typos. (2) In books where there are images such as portraits, maps, sketches etc We have endeavoured to keep the quality of these images, so they represent accurately the original artefact. Although occasionally there may be certain imperfections with these old texts, we feel they deserve to be made available for future generations to enjoy.

Availability of Credit to Small and Minority-Owned Businesses

Availability of Credit to Small and Minority-Owned Businesses PDF

Author: Rebel A. Cole

Publisher:

Published: 2009

Total Pages: 37

ISBN-13:

DOWNLOAD EBOOK →

This article analyzes factors influencing the decisions of prospective lenders to extend credit to small and minority-owned businesses. Using data from a government survey of small businesses, the analysis reveals that prospective lenders (primarily commercial banks) are four times more likely to deny credit to firms owned by African-Americans than to firms owned by Non-Hispanic whites, and are twice as likely to deny credit to firms owned by Asian-Americans than to firms owned by Non-Hispanic whites. These differences in denial rates remain both statistically and economically significant, even after controlling for differences in the type and size of the prospective loan; in the age, experience, education, and creditworthiness of the firm's primary owner; in the age, size, capital structure, profitability, organizational form, creditworthiness, and industry of the firm; and in the types and length of pre-existing relationships between the firm and its prospective lender. Interestingly, these differences in denial rates are significant only when the prospective lender is a commercial bank.

Discrimination in the Small Business Credit Market

Discrimination in the Small Business Credit Market PDF

Author: David G. Blanchflower

Publisher:

Published: 1998

Total Pages: 45

ISBN-13:

DOWNLOAD EBOOK →

This paper uses data from the 1993 National Survey of Small Business Finances to determine the extent to which minority-owned small businesses face constraints in the credit market beyond those faced by white-owned small businesses. First, we present qualitative evidence indicating that black- and white-owned firms report similar concerns about the factors that may affect their businesses except that blacks are far more likely to report problems with credit availability. Second, we conduct an econometric analysis of loan denial probabilities by race and find that black-owned small businesses are almost three times more likely to have a loan application denied. Even after controlling for the differences in credit-worthiness and other factors that exist between black- and white-owned firms, blacks are still about twice as likely to be denied credit. A series of specification checks indicates that this gap is unlikely to be largely attributed to omitted variable bias. Third, we conduct a similar analysis regarding interest rates charged to approved loans and find black-owned firms pay higher interest rates as well. Finally, even these results are likely to understate differences in credit access because many potential black-owned firms are not in operation due to the lack of credit and those in business may be too afraid to apply. These results indicate that the racial disparity in credit availability is likely caused by discrimination

Lanterna Rally - Theme by Grace Themes