SBA Issuing More Loans But Not To Bla...

SBA Issuing More Loans But Not To Black Businesses

There are 5 comments on the WDBZ-AM Cincinnati story from Mar 17, 2014, titled SBA Issuing More Loans But Not To Black Businesses. In it, WDBZ-AM Cincinnati reports that:

Monday, the "NewsOne Now" panel discussed a recent Wall Street Journal report that found black-owned businesses receive just 1.7% of the $23.09 billion in total SBA loans.

Join the discussion below, or Read more at WDBZ-AM Cincinnati.


Columbia, SC

#1 Mar 18, 2014
This is another way to keep the black man down.
Troll Detector

New Port Richey, FL

#2 Mar 18, 2014
How do melanin enriched gods and kings always seem to end up getting held down and oppressed by inferior inbred pasty muta?

That doesn't even make any sense......

(Oh,....and Hi,....beacon boy!)

Zlin, Czech Republic

#3 Mar 18, 2014
ProfitSee wrote:
This is another way to keep the black man down.
Hardly a challenge since the black "man" does 99% of it for us .. and then whines about how everybody -- ANYBODY -- must be to blame for it.

Never in the history of the planet has the male primate revealed itself to be such a helpless, frightened, self-destructive, stupid creature as has been evidence in the American black "man".

Zlin, Czech Republic

#4 Mar 18, 2014
Chuck Blakeman

Englewood, CO

#5 Mar 28, 2014
This is a symptom of a much broader problem with the SBA, which is that they no longer do much lending at all to small businesses with 1-19 employees. They have left small business behind, and black businesses are largely 1-19 employee businesses as well. Here's the real issue:

1) In 2009 every major bank in America took away the credit lines of every single business under $1million, without regard to their credit worthiness, and without notifying any of them - it was a middle of the night move (check w/ Dave Rader, head of Wells Fargo SBA Lending). And then after those millions of businesses turned to their personal credit lines to fund ongoing business, their rates were jacked to 12-20% while the banks enjoyed the lowest federal interest rates in history. 28 million businesses - 98% of all employee and non-employee businesses - have 1-19 employees. These 98% were devastated by that act. Almost all black-owned businesses are part of the 98%.

2) The 98% need loans of $50,000 to $250,000. In 2008 the average SBA loan was $182,000 and 24% of them were under $100,000. Today the average SBA loan is a bloated $485,000 and less then 9% of loans are under $100,000, and declining
(check w/ Terry Sutherland, SBA Press Office). All businesses with 1-19 employees have experienced drastic reductions in loan availability. The reduction in black-owned lending reflects the same thing every other small business is experiencing - the SBA doesn't lend to small businesses anymore.

3) HERE IS WHY THIS IS HAPPENING: The title of this article is slightly misleading. The SBA is NOT giving more loans. In fact they are giving a lot FEWER loans, but all of it is going to big businesses (see #2 above). Why?

Because from 2008 through today the SBA has been proactively and aggressively expanding the definition of "small" to now include tens of thousands of very large corporations with $30+million and 500+ employees. As a result, the SBA and the banks are writing fewer, much bigger loans to very large companies, and still claiming they support small business.

These three facts are at the core of the black-owned lending problem, and why we have had the slowest recovery in American history. All small business owners of every background should be just as concerned. The SBA has left all small businesses behind.

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