Black Businesses Get A Larger Portion of SBA Loan Money in the DC Area
The Small Business Administration, which talked up Small Business Saturday late last week, is putting its money where its mouth is with respect to black businesses.
During fiscal year 2012, black businesses were the only ones in the Washington DC area to see an increase in the number of loans they received from the government body, and the group to see the smallest decrease in the amount of money lent for the period.
According to the Washington Business Journal, African Americans got 14.5 percent of the loans administered for the year ending September 2012, an increase from the 10.4 percent the year before. (Black businesses had received 31.3 percent of the loans given in 2008 before taking a huge drop the following year to 17.6 percent.)
Moreover, the amount of money that was lent was up to 7.1 percent of the total given, up from 6.3 percent the two previous years.
The Washington Business Journal also lists the top lenders; the three biggest were M&T Bank (19 loans totaling about $1.8 million), BB&T (10 loans totaling $1.675 million), and Business Finance Group (five loans totaling $3.7 million).
Black businesses typically struggle for funding despite the entrepreneurial spirit that thrives in the African-American community. Let’s hope that other cities will see similar results.