Commentary: Access to Capital and Credit

Summary


Minority businesses are one of the fastest growing sectors in the business community. However, long-standing and systemic difficulties in obtaining working capital or financing for growth limit these firms' ability to play stronger and more vital roles in the growth of our economy. This limitation will become more apparent as minorities become a larger part of our nation's population.

According to a 2000 study conducted by the Milken Institute and the U.S. Department of Commerce's Minority Business Development Agency, discrimination in lending is a national problem. The study found that discrimination in the credit market against minority business enterprises can have an important effect on the likelihood that the business will succeed and may even prevent businesses from starting at all.

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Extract


Commentary: Access to Capital and Credit

Resolving the gap between a white and a non-white firms' ability to obtain capital and credit is critical to the United States' economic health, given the changing demograp...

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