Focus On Race And Gender $$$ Solutions Needed
ATLANTA - The Federal Reserve Bank of Atlanta conducted a survey of general market small businesses (primarily non minority). The purpose of the FMCRC survey was to compare minority to non minority small business capital needs (as compared to Federal Reserve Bank of Atlanta).
Conclusion of FMCRC Survey:
Due to statistically significant differences between minority and non minority small business needs, race and gender specific surveys need to be conducted by Federal Reserve Board and Federal Reserve Banks to provide more precise data that is utilized to formulate policies (including CRA) that will impact minority and underserved communities. Community Economic Development, Workforce Development and Small Business Development are KEY COMPONENTS to reversing poverty and unemployment in distressed communities.
Minority Small Business
Florida Access to Credit Survey
(June 2010-273 Respondents)
Comparison Poll to General Market Poll Conducted By
Federal Reserve Bank of Atlanta
April 2010
EXTENT TO WHICH FINANCING NEEDS WAS MET:
Denied credit:
General Market Small Business: 40%
Minority Small Business: 63%
Received the full amount requested:
General Market Small Business: 36%
Minority Small Business: 13%
CREDIT SOURCES (All Industries):
Line of Credit from a large national bank (not SBA)
General Market Small Business: 61%
Minority Small business: 19%
Line of credit from a regional or community bank (not SBA)
General Market Small Business: 52%
Minority Small Business: 13%
Loan from a large national bank (not SBA):
General Market Small Business: 33%
Minority Small Business: 12%
Loan from a regional or community bank (not SBA):
General Market Small Business: 41%
Minority Small Business: 33%
Credit Card Companies:
General Market Small Business: 41%
Minority Small Business: 68%
REASONSON FOR NOT SEEKING CREDIT (All Industries):
Sales/Revenue did not warrant it:
General Market Small Business: 28%
Minority Small Business: 33%
Unfavorable credit terms offered by lenders:
General Market Small Business: 9%
Minority Small Business: 21%
Sufficient Cash on hand:
General Market Small Business: 35%
Minority Small Business: 7%
Existing Line of Credit meets needs:
General Market Small Business: 27%
Minority Small Business: 3%
Did not think lenders would approve request:
General Market Small Business: 16%
Minority Small Business: 44%
Did not need Credit:
General Market Small Business: 27%
Minority Small Business: 2%
PRIMARY OBSTACLES TO ACCESSING CREDIT (ALL INDUSTRIES)
No recent Obstacles:
General Market Small Business: 36%
Minority Small Business: 69%
Less thank stellar credit score:
General Market Small Business: 10%
Minority Small Business: 9%
Lack of equity in real estate (business or personal):
General Market Small Business: 15%
Minority Small Business: 34%
Level of outstanding business or personal debt:
General Market Small Business: 19%
Minority Small Business: 17%
Loss of personal wealth/investment:
General Market Small Business: 19%
Minority Small Business: 12%
Change of Sales over the last couple of years:
General Market Small Business: 32%
Minority Small Business: 27%
FMCRC Mission Statement The Coalition's (70+ minority organizations) strategy entails six central programs and projects for Florida's minority communities, families and organizations:
Our goal is to empower low-income and minority communities by attracting investments for health, education, homeownership, employment, and minority entrepreneurship using a holistic advocacy approach.
