Print Page   |   Contact Us   |   Your Cart   |   Report Abuse   |   Sign In
News & Press: Arizona Business News Updates

AZ Biz News: Minority Entrepreneurs Still Face Discrimination Applying For Business Loans [VIDEO]

Wednesday, June 25, 2014   (0 Comments)
Posted by: Arizona Small Business Association
Share |


It's not easy getting a small-business loan these days. It's even harder if you are a minority entrepreneur.
New research reveals that non-whites are treated much differently than their white counterparts when looking for a business loan. This happens even when all other variables are identical.
The study, conducted by Utah State University, Brigham Young University and Rutgers University, featured nine businessmen—three white, three black, and three Hispanic. They visited numerous banks seeking a $60,000 loan to expand the very same business. Each applicant had  similar size and stature, clothing, education levels and financial profiles.  

Glenn Christensen, a marketing professor at BYU and one of the study's authors said their experiences weren't similar at all. 

[Glenn Christensen audio comment]

A report last year  found that Hispanic and black entrepreneurs tend to start their companies with less money than whites and they rely more heavily on their own assets than on banks or investors. The study found when they do seek bank financing, they are less likely to be approved than whites, even when considering factors like credit history and business type.

Even when they are approved for a loan minorities aren't on a level playing field.  Recent data shows minority business owners pay interest rates on average 32 percent higher than what their white counterparts pay.

With the number of minority owned businesses climbing rapidly this also has an effect on the broader economy. 

SBA Sr. Manager, Stephen Hart, says the SBA has specific programs to help minority business owners gain access to capital.

[Stephen Hart audio comment]

May the Workforce be With You


Date: Friday, October 28, 2016
7:45 AM - 9:00 AM
GateWay Community College Copper Room


ASBA's Fantasy Lights Holiday Soiree


Date: Thursday, December 1st
6:00 PM - 9:00 PM
Stone House Pavilion at the Phoenix Zoo

Get $5k-$20 in Free Marketing: Make 2016 Your Year for Success!

In Business Magazine

Use In Business Magazine as a tool to reach your customers for 2016. Through Print, Online, Social Media, Email & Events, you can realize an additional $5k to $20k in free advertising with In Business Magazine over 2016.


Small is the New Black


What’s trending for 2016? Small Business! This year, resolve to support our local economy by “Thinking Small” at least one time each week! Need help finding a small biz? Visit! #ThinkSmallBiz


Allowing you to concentrate on what’s really important.

Low and Johnson Inc.

We understand the insurance needs of locally-owned businesses because we’re one, too. As an ASBA member backed by CNA, we’re dedicated to helping small businesses like yours safeguard all you've worked so hard to build.



ASBA 101


Date: Held monthly
Time: Click to check times
Location: Phoenix or Tucson


ASBA Speed Networking


Date: Every 2nd Tuesday of the Month
Time: 3:30 PM - 5:00 PM
Location: Phoenix or Tucson

You're important to us and we want to help protect you

Mutual of Omaha

and your family through the use of insurance products. As a valued association member, you have the opportunity to purchase an insurance policy with lower premiums and/or enhanced benefits not available to the general public. Click here to learn more.


Have questions on small business and health insurance?

Health Insurance

Get the latest on individual, sole proprietor, or group plans related to small business. We can help you find the right plan for you, and your employees. Click to learn more!


CopperPoint Insurance Companies

CopperPoint Mutual

CopperPoint Insurance is Arizona's premiere provider of workers compensation insurance. We've been providing coverage and advocating for Arizona businesses, small and large, throughout the state since 1925.


Association Management Software Powered by YourMembership  ::  Legal