Small Business Administration loans decrease 84% to Black-owned businesses since Great Recession, Cleveland Business Journal reports

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CLEVELAND, Ohio — The Small Business Administration has decreased its loans given to Black-owned businesses 84% since peaking before the Great Recession, according to research by the Cleveland Business Journal.Across the country, cleveland.com’s sister company, The Business Journals, analyzed lending and demographic data and found small businesses in majority-Black census tracts have less access to bank loans than businesses in majority-white tracts.For example, the 10 largest majority-white Census tracts in Cuyahoga County received 1,439 federal small business loans in 2018, worth nearly $22 million, or about $366 per resident. The 10 largest majority-Black Census tracts received 504 loans, worth nearly $8 million, or about $182 per resident.The Business Journals analyzed lending data for the federal 7(a) program, a flexible multi-purpose loan that can be used for small and large businesses.The number of loans decreased 84% to Black-owned businesses from 2007 to 2019, the Business Journal reported. Over the same period, all 7(a) loans dropped 53%.In 2019, Black businesses received 3% of the Small Business Administration’s $23.2 billion in loans.The country’s four biggest banks — Chase, Bank of America, CitiBank and Wells Fargo — made a combined 334 loans to Black-owned businesses in 2019, a 91% decrease compared to 2007.Bank of America awarded the most with 263, and CitiBank made the fewest …

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