In Banking, the traditional 5 C’s in determining a loan have been capacity, capital, conditions, character, and collateral. For marginalized communities however, a 6th C might as well have stood for closed. As in getting a loan was closed to them.
And we aren’t talking about a relic of history. A 2020 analysis by The Business Journals found that White neighborhoods received roughly twice as many small-business loans compared with Black neighborhoods.
On this edition of Oregon On The Record, you’ll hear from Beto Yarce, the new Regional Administrative Director for the Small Business Administration and Scott Bossom of 1st Security Bank, about how he and the organization are working to open up loans to everyone. As someone who’s seen credit discrimination first-hand, Yarce talks about SBA efforts to distribute more and more loans to people who’ve had a traditionally difficult if not impossible job of getting a vital business loan.
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