Small business lending

BofA has launched two programs, one focused on increasing homeownership for Black and Hispanic Americans, and the other on small businesses owned by women and minorities that buy commercial real estate in federal opportunity zones.

Data as of Mar. 31, 2022. Dollars in thousands.

The bureau has dragged its feet for years in moving forward with the rule primarily because of the potential impact on credit availability for millions of small businesses.

Firms owned by people of color have suffered more over the last two years than those owned by whites, according to a survey by the Federal Reserve Banks. Asian American-owned firms reported the biggest increase in financial challenges.

Community development financial institutions proved themselves indispensable during the COVID-19 pandemic. They have earned a seat at the table.

The rules, which come almost four years after California lawmakers passed a landmark disclosure law, require lenders to inform borrowers about annual percentage rates. Some lenders have pushed back, arguing that APRs don’t make sense for certain types of financing.

The agency’s proposed data collection and reporting requirements would disproportionately burden community banks, which lead the nation in small-business lending.

Edward Shin, the onetime CEO of Noah Bank in Pennsylvania, was found guilty of charges related to loans the bank made to businesses in which he held a stake.

Under the deal, participating members of the BancAlliance network will be able to buy interests in loans originated on the digital lender’s platform.

Nearly half of all small-business owners — and higher percentages of minority entrepreneurs — said in a new survey that they aren’t sure they could come up with the funds to cover an emergency $5,000 business expense. But the results also suggest that the Paycheck Protection Program may have led to more trust in the Small Business Administration.