Small businesses have been hammered by the pandemic, and business owners of color have been hit particularly hard. These business owners also faced significant challenges in accessing the Paycheck Protection Program, in part because banks were the primary vehicle for delivering these loans. While people of color are often locked out of traditional lending, Community Development Financial Institutions (CDFIs) can offer a promising alternative to those who have been left behind.
This event, “Scaling Lending to Entrepreneurs of Color,” the first in our Global Inclusive Recovery and Rebuilding series developed under the Global Inclusive Growth Partnership, explores the challenges that entrepreneurs of color face in accessing credit, and what can be done to address them. What are the unique needs of business owners of color, and how are they shaped by the racial wealth gap? Why are smaller loans essential in reaching entrepreneurs of color, and why is it so challenging for lenders to make smaller loans? What are some innovative ideas to help CDFIs to scale their microlending?
Joyce Klein (Director, Business Ownership Initiative, The Aspen Institute) moderated this discussion featuring Michael Barr (Joan and Sanford Weill Dean, Gerald R. Ford School of Public Policy, University of Michigan), Marla Blow (Senior Vice President, Social Impact, Mastercard Center for Inclusive Growth), Tim Ogden (Financial Access Initiative, Wagner Graduate School of Public Service, New York University), and Francisco Lopez (Vice President, Business Innovation and Partnerships, Dreamspring).
The Global Inclusive Growth Partnership is a collaboration between the Aspen Institute and the Mastercard Center for Inclusive Growth. This event series explores different topics related to economic growth and recovery, and how different sectors like civic engagement, health, education, and criminal justice intersect and interact with economic growth and financial security.