Number of SBA loans to black entrepreneurs drops dramatically

529937e916e5b.preview-300An November 30th article in St. Louis Today raises troubling questions about lending in traditionally underserved communities since the Great Recession.

The article states:

  • “In 2007, black-owned businesses in Missouri received 236 SBA-backed loans totaling $20.1 million, according to Post-Dispatch analysis of SBA data. Five years later, that number dropped to 15 loans totaling $2.8 million. During the first 10 months of the 2013 fiscal year, black borrowers received 17 loans totaling $5.7 million.
  • In contrast, the $359 million in loans white-owned firms received in Missouri in 2012 was well above the 2007 total of $281 million, though the overall number of loans declined from 1,455 to 960.”

“Where there are concerns across the industry about particular markets that are underserved by banks, we see a real opportunity” says Norris Lozano, CEO of BusinessUS, a national non-bank lender with headquarters in California. “One of our primary goals is to help provide new capital resources to small businesses owned by minorities, women tribal groups and those located in underserved geographical locations.”

“Our mission is to deliver 60% of our loan originations to such underserved markets, whether by geography, business profile, segment, or diversity of ownership.”

Bank lenders point to a wide variety of lending criteria that govern loan decisions. See the entire article here:

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Small Business Saturday is Big Business for the American Economy

Shop_Small

Just a few years ago, Small Business Saturday was created as a way to redirect the energy of American holiday shoppers from big box stores and malls to main street shops. Simple. Powerful. Brilliant idea.

“Whether you’re a franchise or a sole proprietorship, small business is big business,” says Norris, Lozano, CEO of BusinessUS, a non-bank lender that supports small business through SBA 7(a) lending. “When we shop locally on Small Business Saturday, the dollar we spend stays in our community. That simple act, repeated millions of times across the country, can have profound impacts.”

Seems the annual event has created its own gravity. During last year’s Small Business Saturday, one Detroit business gave a discount to customers who brought in receipts from other small businesses. Another encouraged local businesses to work together to cross promote one another. And there are Neighborhood Circles to connect with local business owners and other neighborhood champions online to share ideas, get inspired, and prepare for the big day together.

American Express provides information and tools for small businesses on its website: http://amex.co/1aOPC40

8 Reasons to be Happy We’re a Non-Bank Lender

Here are 8 reasons BusinessUS is happy to be a non-bank lender:

  1. http://hateyourbank.com/
  2. http://www.cbsnews.com/8301-505144_162-37044303/why-i-hate-my-bank
  3. http://www.bankers-anonymous.com/blog/why-you-hate-your-bank
  4. http://www.experienceproject.com/groups/Hate-Banks/56231
  5. http://money.msn.com/investing/why-we-hate-banks-and-cable-companies
  6. http://www.huffingtonpost.com/2011/11/04/small-businesses-switching-from-big-banks-to-local-banks_n_1070547.html
  7. http://www.kellymcclymer.com/2012/10/bank-of-america-hates-my-small-business/
  8. http://www.americanbanker.com/bankthink/small-business-hates-banks-letter-of-credit-1040995-1.html