Report reveals best lenders for black business: findings lead to renewed calls for public analysis of SBA loans.Report cards are out, and lenders are learning whether they are making the grade. A study released by the Greenlining Institute The Greenlining Institute is a public policy, research, and advocacy non-profit organization based in Berkeley, California. According to its mission statement, it "works to improve the quality of life for low-income and minority communities. , a public policy research and advocacy group based in Berkeley, California Berkeley is a city on the east shore of San Francisco Bay in Northern California, in the United States. Its neighbors to the south are the cities of Oakland and Emeryville. To the north is the city of Albany and the unincorporated community of Kensington. , ranks the nation's financial institutions for Small Business Administration loans to minorities. The report, A Long Way to Go: The Bush Administration and 2004 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 Lending by the Nation's Largest SBA Lenders, ranked lenders with more than $50 billion in assets that made more than 200 SBA-backed loans in fiscal year 2004. Topping the list of total dollar amount loaned to African Americans African American Multiculture A person having origins in any of the black racial groups of Africa. See Race. are Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. , with $24.3 million (out of almost $177 million in SBA loans), and JPMorgan Chase JPMorgan Chase (NYSE: JPM TYO: 8634 ) is one of the oldest financial services firms in the world. The company, headquartered in New York City, is one of the leaders in investment banking, financial services, asset and wealth management and private equity. With assets of $1. , with $13.1 million (out of nearly $66 million in SBA loans). The lowest ranked banks are Fifth Third Bancorp and Wachovia Corp., each with $1.8 million in loans to African Americans (out of almost $13 million in SBA loans and almost $7 million in SBA loans, respectively). The SBA data does not reveal the size of the businesses that receive loans or the number of loan applicants. However, the data does reveal the average dollar amount of each loan given: Asian Americans This page is a list of Asian Americans. Politics
The Greenlining Institute, which emerged from one of the oldest coalitions of African American, Asian American/Pacific Islander, and Latino community leaders--the Greenlining Coalition--hopes to encourage competition among the nation's largest SBA lenders and give minority business owners a heads up for the best places to get money for their business. In addition to obtaining data from Websites and public records, the Institute submitted a formal request to the SBA for specific data under the Freedom of Information Act. Vina Nguyen Ha, program manager for economic policy for the Greenlining Institute and author of the report, says the study was developed in response to the SBA's continued refusal to publicly report and analyze the issue of small business lending to minorities due to Regulation B. The 1973 mandate strictly prohibits financial institutions from collecting and disseminating dis·sem·i·nate v. dis·sem·i·nat·ed, dis·sem·i·nat·ing, dis·sem·i·nates v.tr. 1. To scatter widely, as in sowing seed. 2. small business lending data based on race, ethnicity, or gender. "This problem is further compounded by the Bush administration's continued cuts in SBA funding," Ha says. "The slash-and-burn approach to the SBA's budget cast serious doubt on the agency's ability to work with financial institutions to make more loans available to minority-owned businesses." President George W. Bush's FY 2006 budget cut funding for the SBA by $17 million from FY 2005 and $164 million, or 22%, from FY 2004. For the second year in a row, the budget calls for a zero subsidy for 7(a) loans, the SBA's largest small business loan program. The program will run solely off fees, including a 2006 fee increase, substantial]y raising the cost for small businesses that use the program. "There is definitely a disparity dis·par·i·ty n. pl. dis·par·i·ties 1. The condition or fact of being unequal, as in age, rank, or degree; difference: "narrow the economic disparities among regions and industries" between loans we originate from minority small businesses versus nonminority small businesses," says Arthur Braun, vice president of First Financial Equities Commercial Inc., a mortgage lender that does SBA loans through its commercial department in Englewood, New Jersey Englewood is a city located in Bergen County, New Jersey. As of the 2000 census, the city had a total population of 26,203. Englewood was incorporated as a city by an Act of the New Jersey Legislature on March 17, 1899, from portions of Ridgefield Township and the remaining . "Lenders in general are not in tune to the special needs of minority small businesses." Braun says the findings should implore im·plore v. im·plored, im·plor·ing, im·plores v.tr. 1. To appeal to in supplication; beseech: implored the tribunal to have mercy. 2. SBA officials to re-examine re·ex·am·ine also re-ex·am·ine tr.v. re·ex·am·ined, re·ex·am·in·ing, re·ex·am·ines 1. To examine again or anew; review. 2. Law To question (a witness) again after cross-examination. their lending guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. and how statistical information is generated. He adds that there is much room for improvement, even for the best bank performers in the study. "We would like to see 60% of al SBA loans go to minorities--20% to African Americans, 20% to Asian Americans, and 20% to Latinos," he says. In 2004, African American-owned firms received just 3% of al SBA loan dollars, and Latino-owned firms just 7%. GREENLINING INSTITUTE'S REPORT CARD SBA Lending (Dollar Amount) Top Two African Americans 1. Bank of America $24,288,800 2. JPMorgan Chase $13,123,600 Top Two All Minorities 1. Bank of America $176,680,100 2. Comerica $146,247,800 Bottom Two African Americans 13. Fifth Third Bancorp $1,819,848 14. Wachovia Corp. $1,810,000 Bottom Two All Minorities 13. BB&T Corp. $10,337,000 14. Wachovia Corp. $6,991,150 SBA Lending (Percentage of Loans Top Two African Americans 1. M&T Banking Corp. 8.3% 2. BB&T Corp. 7.2% Top Two All Minorities 1. HSBC USA Inc. 49.0% 2. Bank of America 40.0% Bottom Two African Americans 13. Wells Fargo 2.6% 14. Fifth Third Bancorp 2.2% Bottom Two All Minorities 13. National City Corp. 13.0% 14. Fifth Third Bancorp 9.0% A LONG WAY TO GO THE BUSH ADMINISTRATION AND 2004 SBA LENDING BY THE NATIONS LARGEST SBA LENDERS |
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