Finding financing: SBA loans to Asian- and Hispanic-owned small businesses exceed those to black-owned small businesses. (Facts & Figures).According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the 2000 U.S. Census, ethnic minorities will comprise 90% of the nation's population over the next 50 years--representing more than half of the country. This population boom has spawned a rapid growth of minority-owned businesses, which have grown twice as fast as all U.S. firms over the past five years. To assist these emerging growth companies, the Small Business Administration (SBA SBA abbr. Small Business Administration Noun 1. SBA - an independent agency of the United States government that protects the interests of small businesses and ensures that they receive a fair share of government )launched a variety of lending programs, such as the 7(A) Loan Guaranty Program for small businesses and the Certified Development Company (504) Loan Program to finance fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → , such as facilities or machinery. From 1998-2001, the SBA issued on average less than $10 billion per year worth of 7(A) loans to small businesses, while minority firms received on average less than $3 billion per year, which represents 24% to 26% of the total number of loans. African American African American Multiculture A person having origins in any of the black racial groups of Africa. See Race. enterprises were the second-lowest recipients of these loans. "We respond to demand," says Mike Stamler, spokesperson for the SBA. "We have been encouraging all minority entrepreneurs to apply to these programs. But Asian Americans applied in greater numbers [throughout the four years]." Of course, what kind of belt-tightening will occur in the wake of the September 11 attacks September 11 attacks Series of airline hijackings and suicide bombings against U.S. targets perpetrated by 19 militants associated with the Islamic extremist group al-Qaeda. is anyone's guess. But minority entrepreneurs may have to start tapping more innovative capital resources (i.e. minority-focused venture capital funds Venture Capital Funds An investment fund that manages money from investors seeking private equity stakes in small and medium-size enterprises with strong growth potential. Notes: or community-based securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. programs) to maintain their cash flow.
SBA's 7(A) Loan Guaranty Program *
1998 1999 2000 2001
PERCENTAGE GIVEN
TO MINORITY-OWNED
BUSINESS 24 26 26 25
AFRICAN-AMERICAN 4 5 5 4
HISPANIC 7 8 7 8
ASIAN 11 12 12 12
NATIVE AMERICAN 1 1 1 1
Note: Table made from bar graph.
Total Number of Loans
to Small Businesses
1998 42,268
1999 43,639
2000 43,748
2001 42,957
Note: Table made from bar graph.
SOURCE: SMALL BUSINESS ADMINISTRATION
* Rounded to the nearest whole number
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