Image

12:56 AM / Sunday January 24, 2021

1 Apr 2012

SBA loan data can help focus on minority-owned businesses

  • Facebook
  • Twitter
April 1, 2012 Category: Color Of Money Posted by:

By Rosland Gammon

businessjournalism.org

 

After analyzing 20 years of Small Business Administration loan data, Bryant Ruiz Switzky of the Washington Business Journal found the number of business loans to African Americans dropped 87 percent between 2007 and 2011. That figure became part of a package of stories called Impossible Dreams. The stories explore the reasons behind the decline as well as practices, such as lenders disregarding borrowers’ business plans, that contributed to a large default rate among loans to African American business owners.

 

“One of the reasons no one writes about this issue is because nobody is paying attention,” Bryant says. “Nobody is paying attention because there is no data to pay attention to.”

 

Bryant’s FOIA request to the local SBA district generated spreadsheets with 80 columns of data, he says. He narrowed the columns and created a pivot table with gross loan amounts, date and ethnicity to find patterns.

 

“There’s a lot of rich info about borrowers,” he says.

 

Image

Narrowing the data down to ethnicity and lending institutions led him to an SBA program called Community Express, which generated the most loans in the African American business community. That led him to a lender that profited from the smaller loans before being seized by regulators.

 

“The threads you pull out can lead you in different directions,” he says.

 

Bryant also suggests using Community Reinvestment Act data to determine where small business loans go. It requires large banks to provide annual reports on the number of business loans made for less than $1 million and the total value of those loans, Bryant says. It also requires banks to break the data down by Census tract and county. The downside is the CRA information is based on 2010 census tracts, Bryant says.

  • Facebook
  • Twitter

Leave a Comment

Recent News

Sports

Baseball legend Hank Aaron passes away at 86

January 22, 2021

Tweet Share Pin Email According to reports, legendary baseball player Hank Aaron has passed away in Atlanta...

Stateside

Trump impeachment to go to Senate Monday, launching trial

January 22, 2021

Tweet Share Pin Email By MARY CLARE JALONICK and LISA MASCARO WASHINGTON (AP) — House Speaker Nancy...

Entertainment

Norah O’Donnell: ‘Journalism is more important than ever’

January 21, 2021

Tweet Share Pin Email ABOVE PHOTO: CBS shows Norah O’Donnell, host of the new “CBS Evening News...

Color Of Money

New world, new business: 5 ways small businesses are adapting to COVID

January 21, 2021

Tweet Share Pin Email BPT COVID-19 has irrevocably altered the way that we do business. Some small...

Go With The-Flo

Sherri Shepherd recently kicked off her second A-list partnership with HealthyWage

January 21, 2021

Tweet Share Pin Email ABOVE PHOTO: Sherri Shepherd (Photo: Joe Seer / Shutterstock) By Florence Anthony Quarantine...

Politics

Trump impeachment to go to Senate Monday, launching trial

January 22, 2021

Tweet Share Pin Email By MARY CLARE JALONICK and LISA MASCARO WASHINGTON (AP) — House Speaker Nancy...

The Philadelphia Sunday Sun Staff