Addressing Disparities in Banking for Entrepreneurs of Color.
The collapse of Silicon Valley Bank has reignited concerns about lending discrimination in the banking industry and the resulting disparities in capital for people of color. Minority business owners have long faced challenges accessing capital due to discriminatory lending practices. Many women, people of color, and immigrants opt for community or regional banks like SVB because they are often rejected from the “top four banks.” Black-owned banks work to close the lending gap and foster economic empowerment in these traditionally excluded communities, but their numbers have been dwindling over the years, and they have far fewer assets at their disposal than the top banks.