Okay. so let's discuss that first article that has points to discuss: But first, we have to understand that banks have lending standards. They can't discriminate based on sex, race, etc., as there are equal opportunity lending laws. So let's be clear that those lending standards exist.
Also, did you even read the first article, or google find a title that fit your narrative and then copy and paste? The first article basically negates your premise in the first paragraph. It states:
"One of the many long-standing frustrations for minorities is that their vital role in the U.S. economy hasn't made it much easier for them to obtain the means for success. Between 2007 and 2017, minority-owned small businesses
grew by 79%, about 10 times faster than the overall growth rate for U.S. small businesses during the same time frame. This puts the number of minority-owned businesses at approximately 11.1 million, which isn’t much of a surprise, considering the U.S. is expected to become a minority-majority country sometime between 2040 and 2050.
First point: Lower Net Worth.
First thing I'll say is that the article unfairly uses this term and language, "Banks are traditionally biased against applicants with less money to spare, partially because such applicants probably cannot offer collateral". This is not a "bias" decision, rather it is a business decision. If you go to bank for a small business loan, they need to know that the applicant has financial viability, and collateral is one are banks look at. If you don't have a large sum of money in the bank, what other assets can you offer to the bank in case your business goes belly up? There is nothing bias about it.
However, someone's net worth is not the fault of White America, especially today. But, what the article doesn't do is educate on how to over come a "net worth" issue. If you want to start a business with little to no capital, get an investor on board, or a co-owner to increase the net worth. Formulate strategic business plan to present to the bank. One's net worth isn't a racial issue, it is an individual hinderance to starting a business that can be overcome if one wants research and work to overcome it.
2nd Point: Not the Most Optimal Location
Banks again do a risk assessment. It is their discretion to approve or deny based on the viability of the business plan and owner. This is again, not a racial issue, but a cultural and community issue.
3rd Point: Poor Or Little Credit History
No ones fault but the loan applicant. Not a racial issue. A person's credit history can be a direct relation to how an individual will run a business. But what is interesting is that this paragraph does provide some valuable insight.
"Thankfully in times like this, private funding companies have gained traction by mining data and looking not only at credit but also looking at time in business, industry, location, cash flow, both daily and monthly ending bank balances in the business accounts, number of staff, time left on lease, etc. By looking at more than just credit, these models have allowed minority business owners to access capital."
Also I didn't even ask you to re do your dissertation all I asked was where on the internet it could be found.
governor.ohio.gov
www.forbes.com
www.theguardian.com
www.nbcnews.com
www.usmessageboard.com
