In 2017, a modest 3.86% of SBA 7(a) loans were disbursed to Black business owners. By 2023, this figure had surged to an encouraging 7.76%. In parallel, the percentage of total loan value received by Black entrepreneurs climbed from 2.36% to 4.41% over the same period.
"We are heartened by these findings," says William Michael Cunningham, CEO of Creative Investment Research, "which signal the tangible progress we've been striving for. However, they also underscore the critical work that remains in order to achieve true equity in small business financing."
While the study's results clearly illustrate a trend towards greater inclusivity, they also highlight the need for continuous and focused efforts. The gap between the proportion of the Black population in the U.S and the percentage of total loan dollars they receive serves as a stark reminder of the ongoing challenges.
The team behind the study suggests several measures to sustain and accelerate this upward trajectory. These include increased outreach in Black communities, financial literacy programs (see our Udemy class: How to Finance a Black Women-owned Business), policies that eliminate lending biases, leveraging fintech solutions, enactment of supportive government policies, and bolstering the capabilities of Black-owned banks.