(CFPB-PR-241113-1) (11-13-24)
CFPB Pilot Study Finds Differential Treatment in Small Business Lending Markets – Lenders less likely to encourage Black entrepreneurs and more often steer them toward alternative financing
- Excerpt: WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) released a study revealing significant disparities in how lenders treat Black and white small business owners seeking loans. The research found that Black entrepreneurs received less encouragement to apply for a loan and were more frequently steered toward alternative loan products compared to white shoppers with similar or weaker business credit profiles. While focused on specific testing sites, this research provides insights into potential lending disparities that warrant further exploration.
- Agency: CFPB-PR-2411
- Categories: Lending Disparities – Discriminatory Lending Practices
- Source: https://www.consumerfinance.gov/about-us/newsroom/cfpb-pilot-study-finds-differential-treatment-in-small-business-lending-markets/
(CFPB-PR-241113-1) (11-13-24)