Today, the Greenlining Institute released its annual report card ranking the performance of top financial institutions in SBA lending to minority entrepreneurs in fiscal year 2008. The report will be sent to the top management of the nation’s largest SBA lending institutions in order to foster competition in lending to minority-owned small businesses. The findings are based on the verified data for fiscal year 2008 provided to Greenlining by the SBA through a Freedom of Information Act request.
Our results show that Bank of America, JP Morgan Chase, and Citibank are the leading institutions in the nation in SBA lending to minority-owned small businesses.
The Greenlining Institute evaluated these institutions in terms of the number of SBA loans they originated to African American-, Asian American-, and Latino-owned businesses, as well as the percent of total loans and the loan volume going to minority-owned businesses.
Greenlining is issuing this report at a time when SBA-backed lending is down 30.3% nationally, including a decline of 39.3% in California. Disaggregated by race, SBA lending to:
• Latino(a)-owned businesses decreased 45.3% nationally and almost half (48.4%) in California.
• Asian American-owned businesses decreased 30.8% nationally and 40% in California.
• African American-owned businesses decreased 19.7% nationally and 20.8% in California.
Greenlining produced this study due to the SBA’s refusal to conduct their own analysis of SBA lending to minorities.
Greenlining Recommends Expansion of the SBA
Greenlining will be urging President-Elect Obama and future Secretary of Commerce Bill Richardson to totally revamp SBA’s purposes, practices, and funding. Greenlining has already met with a number of key Congresspersons, including the heads of the three minority congressional caucuses to urge that the SBA budget be increased from less than $1 billion to $12 billion, which is approximately its level in 1978, after adjustments for inflation. Secondly, in order to spur more job creation, Greenlining is urging that at least half of the SBA’s new budget be used for technical assistance and capacity building. In addition, Greenlining will use this report to urge that President Elect Obama’s proposed $500 billion economic stimulus plan include at least $50 billion in assistance to small and very small businesses that create jobs.
Jorge Corralejo, Chairman of the Board for Latino Business Chamber of Greater Los Angeles said, “The SBA has not worked for our nation’s 5 million minority-owned businesses. We are the fastest-growing segment of the economy, and could help President Obama create the 2.5 million new jobs he seeks.”