Why Minority Business Owners Can Fall Into Bad Loan Cycles

When local entrepreneur Troy Parker was looking for a loan for his small business, he ran into a problem that prevented him from getting a line of credit from a traditional banking system.

Troy is not alone in his struggle to get credit. According to the Federal Reserve’s 2021 Small Business Credit Survey, 30% of Black small business owners say access to credit is their biggest financial challenge. That compares to just 12% of white business owners who cited access to credit as a concern.

Ohio State has a program designed to help small and minority business owners get the loans they need to grow or expand their businesses and that has helped Troy. The Ohio Department of Development’s Collateral Enhancement Program provides 50% cash collateral for loans to Minority-Owned Businesses (MBE) and Women-Owned Businesses (WBE).

Join Cincinnati Edition to discuss the program and some of the challenges facing black business owners, Angelica Johnson, senior vice president of First Financial Bank and chief sales officer of the SBA; and Innovative Labor and Cleaning Services, Inc., President and CEO Troy Parker.

To listen Cincinnati Edition live at noon MF. Audio for this segment will be uploaded after 4 p.m. ET.

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