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Small Business Credit Survey 2019 Report on Minority-Owned Firms

Small businesses are crucial to the nation’s economy. They employ almost half of U.S. workers, and are important sources of employment and wealth building, particularly for minority communities. The number of minority-owned businesses has grown rapidly in recent years, which means that their well-being and ability to access financing is increasingly important to fostering economic opportunity and broader economic growth.

This report examines the state of minority-owned businesses, offering insights on their performance, access to financing, and experiences in the credit market.

Some key findings include:

  • For many minority-owned businesses, key performance indicators like profitability and revenue growth lagged White-owned firms.
  • Minority-owned firms relied to a greater extent on personal funds, and on personal credit scores when applying for financing, than did White-owned firms.
  • Minority-owned firms’ loan applications tended to have worse outcomes (not controlling for other firm characteristics) than did the applications of White-owned firms, particularly at small banks or online lenders.
  • Dissatisfaction with a lender is relatively high among Black- and Hispanic-owned firms.


Check here for related Small Business content, including analyses, credit-survey results, commentary, and more.

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