Access to Credit for Small and Minority-Owned Businesses

Brent Meyer and Mark Schweitzer

Economic Commentary, 2022, vol. 2022, issue 04, 6

Abstract: Equal access to small-business credit is a critical underpinning to equity in economic opportunity; however, it is difficult to regularly assess the fairness of credit provision. Prior research has focused on the Federal Reserve Board’s Survey of Small Business Finance, but the most recent data from this source is from 2003. This article provides preliminary results on new credit access questions added to the Census Bureau’s 2021 Annual Business Survey. We find that minority-owned businesses generally were just as likely to apply for credit in 2020, but Black-, Asian-, and Hispanic-owned businesses were less likely than white-owned businesses to report receiving all of the credit that they sought. Also, Black-, Asian-, and Hispanic-owned businesses more frequently reported seeking credit in order to cover operating expenses rather than for financing capital expenditures or expansion. Heading into 2022, minority-owned businesses report weaker ongoing viability.

Keywords: diversity; small business (search for similar items in EconPapers)
Date: 2022
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.26509/frbc-ec-202204 Full Text (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fedcec:93865

Ordering information: This journal article can be ordered from

DOI: 10.26509/frbc-ec-202204

Access Statistics for this article

More articles in Economic Commentary from Federal Reserve Bank of Cleveland Contact information at EDIRC.
Bibliographic data for series maintained by 4D Library ().