AP - A recent study (California Reinvestment Coalition) found  that in some parts of the country banks decreased lending to black-owned businesses by over 80 percent. And that’s not just loans to get businesses off the ground, but also the financing needed by black businesses to continue operating and make payroll.

UPH- Don't blame it on the recession anymore...there is research now that proves banks are turning a blind eye to lending financial help to black business owners.  Do you think that this is just an isolated case or that it's more wide spread?


Key findings of the report include:
• Bank of America, CitiBank, and Wells Fargo have decreased small business lending in California by two-thirds between 2007 and 2009—leading to 500,000 less loans for California’s small businesses.
• In California, Small Business Administration (SBA) lending by all banks dropped by 71 percent from 2007 to 2009—representing a loss of $1.2 billion in funding for small businesses. African American-owned businesses experienced an 81 percent drop in access to SBA loans, and Latino-owned businesses experienced an 84 percent drop.
• Bank of America, Wells Fargo, US Bank, Union Bank, and Citibank dropped their SBA lending by 77 percent from 2007 to 2009, but their SBA lending to Latino-owned, African American-owned, and Asian- owned businesses dropped much more dramatically– at 89 percent, 86 percent, and 88 percent, respectively.
• In each of the six counties examined, conventional small business lending dropped by 68-75% percent, and small business lending in low income communities dropped by 70-79%. Bank of America and Citibank decreased their conventional small business lending by more than 80 percent in the six counties. Only US Bank increased their loan volume during the time period.
• In Alameda, San Diego, and Santa Clara, small businesses in low-income communities were hit the hardest; lending in these neighborhoods decreased by 20 percentage points more than the average lending activity in the county.
• There were 25 percent fewer businesses in the City of Los Angeles in 2009 than in 2007; this represents a loss of 150,951 jobs.