It has been clear for decades that minority and women-owned businesses, or M/WBEs, face incredible discrimination in credit and capital markets. Hedge funds are not investing in M/WBEs, venture capital firms not are knocking on M/WBE’s doors, and depository banks not are giving M/WBEs fair loans. Businesses owned by black, Hispanic, or female entrepreneurs open their doors with half of the average capital of a non-minority firm. These issues combine to create a business environment that is actively hostile and discriminatory towards minority- and women-owned businesses.
This report proposes a solution. In it, The Black Institute assesses the need for capital investment in New York’s minority and women-owned businesses, demonstrates the ability and responsibility of New York State and New York City to address capital discrimination towards New York’s M/WBEs, and recommends policies and practices that would end discriminatory capital.
Click here to download Access Denied: M/WBE Capital and Credit Discrimination in New York.
“Discrimination in the credit market against minority-owned small businesses can have a devastating effect on the success of such businesses, and even prevent them from opening in the first place.” - 2010 New York State Disparity Study
“…a firm is more likely to be denied credit when it is minority owned by an order of magnitude.” - United States Small Business Administration Office of Advocacy, 2014