Small Business Lending - Research

November 2, 2017
The report examines the state of traditional bank small business lending in Fresno County, CA, and Minneapolis - St. Paul, MN. It offers policy and practice recommendations concerning the noted disparities in lending to businesses in low- and moderate-income neighborhoods and in communities of color. It is the fourth, and final, in a series of research reports examining small business owners’ access to capital in eight major metropolitan areas.
This is the cover sheet for the fact sheet, it contains a table with various loan terms.
July 12, 2016

This Fact Sheet examines the terms of loans from major online lenders to small businesses. This analysis revealed that non-bank “fintech” loans to small businesses lack transparency regarding costs and terms, have effective interest rates up to over 350%, and include junk fees averaging $795 per loan. These loans, which resemble payday loans and the toxic subprime mortgage loans that led to the Great Recession, are made without regard to small business borrowers’ ability to repay and often trap borrowers in debt.

April 25, 2016
Presented by Dory Rand and Spencer Cowan at an Accion Chicago forum.
Title Slide
April 7, 2016
Presented by Dory Rand at the 2016 National Community Reinvestment Coalition conference in Washington, DC.
January 25, 2016
Presented by Spencer Cowan at the Illinois Senate Hearing on small business and and impact of predatory lending.
August 20, 2014
This fact sheet looks at the disparate access to business loans for Chicago area businesses. The numbers show that businesses in wealthier and predominantly white tracts were more likely to receive loans than businesses in low- to moderate-income or majority-minority tracts. In response to these disparities, Woodstock Institute recommends that local governments should encourage banks to lend to more low- to moderate-income areas by enacting strong responsible banking ordinances, bank examiners should more stringently analyze lending practices under the Community Reinvestment Act, and more.
August 19, 2014

This report examines geographic patterns of access to bank capital for businesses in the Chicago six county region, with a focus on smaller loans and other types of credit, amounts under $1 million, that are more likely to benefit smaller, local businesses that create economic opportunity within neighborhoods. For small neighborhood businesses to grow, they need to be able to access capital, and one common source of capital for small businesses are loans, lines of credit, and business credit cards (collectively, “small loans”) issued by banks and other financial institutions.