This Week in ESG and Impact Investing

Calling it “historic progress,” the U.S. Small Business Administration announced it has doubled lending to Black businesses nationwide in multiple categories. The SBA on Thursday, Sept. 21, reported it has backed 4,387 loans to Black-owned businesses so far in fiscal  2023 via its 7(a) and 504 loan programs, over twice as many as since 2020. In terms of loan amounts, a total of $1.3 billion has been provided, constituting a 7.5% overall share of SBA-approved loans for businesses, also showcasing a doubling since 2020. The SBA reported that women and people of color have led a historic small business boom. Some 13.1 million new business applications have been filed with the agency since President Joe Biden took office— a rate 65% faster than the pre-pandemic average.   SBA Administrator Isabel Casillas Guzman and Congressman Steven Horsford (D–NV Fourth District) announced the loan performance at the 2023 Congressional Black Caucus Foundation’s Annual Legislative Conferenc...

I saw an article recently on Black banks in the US that was filled with inaccuracies. It was a public relations piece for the banking industry, so I thought I would post something based on my 20 years of research experience in the sector. 1. What is the historical significance of Black banks? They were created at a time when discrimination against Black people   was legal in the US. They served as the only financial service   providers to the community. 2. Do Black banks have the same level of significance to the Black  community today? Why or why not? No. They are too small to serve the community in any meaningful way. For example, they cannot serve as a line of defense against predatory lending . The result: b anks like Wells Fargo are free to target black communities for shoddy loans :  http://www.washingtonpost.com/ business/economy/former-wells- fargo-loan-officer-testifies- in-baltimore-mortgage-lawsuit/ 2012/06/12/gJQA6EGtXV_story. html Some Black banks we...