{"id":2478,"date":"2018-06-07T15:21:35","date_gmt":"2018-06-07T12:21:35","guid":{"rendered":"https:\/\/www.lending-express.com\/blog\/?p=2478"},"modified":"2018-06-07T16:51:02","modified_gmt":"2018-06-07T13:51:02","slug":"losing-the-race-race-dont-let-your-background-affect-your-business-loan-eligibility","status":"publish","type":"post","link":"https:\/\/www.become.co\/blog\/losing-the-race-race-dont-let-your-background-affect-your-business-loan-eligibility\/","title":{"rendered":"Losing the Race Race? Don\u2019t Let Your Background Affect Your Business Loan Eligibility"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Racial discrimination; it\u2019s one of those ugly things that pops its head up every now and then and, unfortunately, when it comes to the world of lending, economic racism can be found lingering. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s hard enough getting a small-business loan. It\u2019s even harder if you\u2019re not white to get minority business grants. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Despite 50 years passing since the federal Fair Housing Act banned racial discrimination in lending, African-Americans, Latinos and pretty much anyone who isn\u2019t translucently white is still commonly denied mortgages and business loans. Here we\u2019ll delve into the stats and how to gain fair treatment&#8230;<\/span><\/p>\n<p><!--more--><\/p>\n<h2><span style=\"font-weight: 400;\">Unequal Access to Small Business Financing<\/span><\/h2>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s a real shame that a growing business can face setbacks and dwindling capital access purely based on their ethnicity and gender. But it happens. Often. \u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Research by Sarah Harkness suggests that <\/span><a href=\"http:\/\/journals.sagepub.com\/doi\/pdf\/10.1177\/0190272515623459\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">lenders assess their borrowers based on cultural stereotypes<\/span><\/a><span style=\"font-weight: 400;\"> and the borrowers\u2019 status. In an eye-opening experiment, Harkness evaluated a series of loan applications whose race and gender were tampered with. Despite the applicant\u2019s having identical financial histories, the results frustratingly show that race and gender \u201c<\/span><i><span style=\"font-weight: 400;\">significantly affect lenders\u2019 funding decisions because they alter lenders\u2019 status beliefs about the applicants<\/span><\/i><span style=\"font-weight: 400;\">\u201d, making gaining small business loans for minorities an uphill battle. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">In fact, a <\/span><a href=\"https:\/\/www.federalreserve.gov\/publications\/files\/sbfreport2017.pdf\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">2017 governmental service report<\/span><\/a><span style=\"font-weight: 400;\"> on the availability of credit to small businesses, found that less than 47% of black-owned businesses seeking finance from the bank were funded. This failure rate was highest among <\/span><i><span style=\"font-weight: 400;\">all <\/span><\/i><span style=\"font-weight: 400;\">categories by a whopping 10%! <\/span><a href=\"https:\/\/www.become.co\/blog\/best-small-business-loans-grants-options-for-women-entrepreneurs\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Female-owned firms <\/span><\/a><span style=\"font-weight: 400;\">were also more likely to be turned down than their male counterparts despite external factors such as finance and business health being of similar levels. Minority business grants <\/span><i><span style=\"font-weight: 400;\">should <\/span><\/i><span style=\"font-weight: 400;\">be on par with the rest of the world, but the numbers speak for themselves. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">The blatant prejudice is there &#8211; it\u2019s black and white, quite literally. So what can <\/span><i><span style=\"font-weight: 400;\">you <\/span><\/i><span style=\"font-weight: 400;\">do to avoid this?<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\">Avoid Racial Discrimination: Loans for Minority-owned Businesses <\/span><\/h2>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">If one of the most consistent re<\/span>lationships in the lending market, particularly when it comes to the bank, is the differential treatment of Black, Hispanic and female borrowers, it begs the question, what can these less-favored groups do to increase their chances of getting their hands on a loan? The answer is simple &#8211; look to the future. Move far, far away from the old-school face-to-face interactions of the bank and not to mention all of that paperwork. Not only will you be more likely to get the loan you deserve, but the trees will be eternally grateful too.<\/p>\n<p><span style=\"font-weight: 400;\">So what do we mean by \u2018look to the future\u2019 when looking for small business loans for minorities?<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<p><a href=\"https:\/\/www.become.co\/?r=Blog&amp;pm=Losing_the_Race_Race\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" class=\"aligncenter wp-image-2485 size-large\" title=\"Searching for business loans for minorities \" src=\"https:\/\/www.become.co\/blog\/wp-content\/uploads\/2018\/06\/iStock-491311400-1-1024x683.jpg\" alt=\"\" width=\"640\" height=\"427\" srcset=\"https:\/\/www.become.co\/blog\/wp-content\/uploads\/2018\/06\/iStock-491311400-1.jpg 1024w, https:\/\/www.become.co\/blog\/wp-content\/uploads\/2018\/06\/iStock-491311400-1-300x200.jpg 300w, https:\/\/www.become.co\/blog\/wp-content\/uploads\/2018\/06\/iStock-491311400-1-768x512.jpg 768w, https:\/\/www.become.co\/blog\/wp-content\/uploads\/2018\/06\/iStock-491311400-1-405x270.jpg 405w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/><\/a><\/p>\n<h2><span style=\"font-weight: 400;\">Let\u2019s Get Digital, Digital \u266a\u266b\u266c<\/span><\/h2>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Loans for minority-owned businesses are hard to come by, but not in the digital lending landscape. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Using an AI-powered marketplace that\u2019s 100% online &#8211; it\u2019s perfect for providing business loans for minorities.<strong> You can now <\/strong><\/span><strong><a href=\"https:\/\/www.become.co\/?r=Blog&amp;pm=Losing_the_Race_Race\">get a loan for your small-medium business<\/a><\/strong><span style=\"font-weight: 400;\"><strong> based on the health of your business alone.<\/strong> With none of that gender and racial bias malarkey.<\/span><\/p>\n<p>Become offers such a technology whereby businesses are matched with relevant lenders (at no cost), purely based on the length of time the business has been open and the financial health of the company. There&#8217;ll be no shady questions regarding your ethnicity, and certainly no gender inequality.<\/p>\n<p>&nbsp;<\/p>\n<blockquote><p><b>\u201c<em>When it comes to the race and\/or ethnicity of a given applicant, at the end of the day, it really has no impact on a candidate\u2019s viability. Alternative lenders are of a new, modern class of business, using methods that are changing the nature of the industry &#8211; for the better. Those companies that have embraced the digital world cut the need for face-to-face interactions are eradicating the \u2018issue\u2019 of race altogether with regards to loan approval. Business owners should be provided with an equal opportunity based entirely on the health of their business<\/em>.\u201d<br \/>\n&#8211; Eden Amirav, Co-Founder and CEO, Become.<\/b><\/p><\/blockquote>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">If you\u2019re wondering <em>why<\/em> there\u2019s \u2018no cost\u2019 and how this is even possible, think of Become as a matchmaking service, matching <\/span><i><span style=\"font-weight: 400;\">you<\/span><\/i><span style=\"font-weight: 400;\">, the borrower, with lenders that are best suited to your needs. It\u2019s that simple. \u00a0\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><a href=\"https:\/\/www.become.co\/?r=Blog&amp;pm=Losing_the_Race_Race\"><b>Click here<\/b><\/a><span style=\"font-weight: 400;\"> to see if you\u2019re eligible for a loan &#8211; fair treatment guaranteed. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Business loans for minorities are clearly a big issue. Have you experienced racial and gender biases when applying for a loan? Tell us about it &#8211; we want to hear your story. Comment in the section below. <\/span><\/p>\n<h6><span style=\"font-weight: 400;\"><br \/>\n<b><i>Disclaimer<\/i><\/b>: The above information is of a general nature. Before receiving a business loan you should consider the loan agreement and finance documents provided by the lender, and whether the loan is suitable for your business.<br \/>\n<\/span><\/h6>\n","protected":false},"excerpt":{"rendered":"<p>Racial discrimination; it\u2019s one of those ugly things that pops its head up every now and then and, unfortunately, when it comes to the world of lending, economic racism can be found lingering. It\u2019s hard enough getting a small-business loan. It\u2019s even harder if you\u2019re not white to get minority business grants. Despite 50 years [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2479,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[15],"class_list":["post-2478","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-minority-business-loans"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Losing the Race Race? 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