© 2021 WKSU
Public Radio News for Northeast Ohio
Play Live Radio
Next Up:
0:00
0:00
Available On Air Stations
Economy
00000174-c556-d691-a376-cdd69ef90000WKSU undertakes a year-long examination of entrepreneurship in Northeast Ohio with a 360-degree look at business creation in the region and examine the resources available to start-ups, the opportunities, and pitfalls in the local business climate. The project includes long-form features as part of WKSU's ongoing Exploradio series as well as entrepreneurship-themed news reports.00000174-c556-d691-a376-cdd69efb0000The Entrepreneurship Beat is produced with generous support from the Burton D. Morgan Foundation. Burton D. Morgan Foundation champions the entrepreneurial spirit, contributes to a robust entrepreneurial ecosystem, and leads in the burgeoning field of entrepreneurship education. Read more about the project HERE.

New Report Shows That Minority Business are at a Disadvantage in Access to Lending

cleveland_fed_minority_biz_report_chart.jpg
FEDERAL RESERVE BANK OF CLEVELAND

A new report finds that minority-owned businesses have a more difficult time getting credit from lenders than companies with white owners.

The report from the Federal Reserve Banks of Cleveland and Atlanta suggests that black business owners face the largest credit gap of minority groups in the study.

Black owners were twice as likely to report having difficulties getting funds for business expansion. They were also approved 20 percent less often for lines of credit than their white counterparts.

Brett Barkley is a research analyst with the Cleveland Fed. He says the findings don’t necessarily point to discriminatory lending, but he doesn’t rule that out.

"We see this as an important topic to ensure that discrimination is not happening, so we intend to further investigate why differences are showing up in the data. First, we are currently and plan to continue to share this report broadly across a variety of stakeholders," Barkley said.

The report used data from the 2016 Small Business Credit Survey.

Loading...