FT News Briefing America’s segregated banking
Dec 22, 2021
Explore the shifting dynamics of U.S. stock exchanges as they pursue new company listings amid declining Chinese investments. Discover Turkey's efforts to stabilize its lira through a new savings scheme, despite ongoing inflation concerns. Dive into the challenges faced by Black entrepreneurs in securing affordable loans, revealing biases in lending practices. Learn about the vital role of Community Development Financial Institutions and the funding disparities they encounter while helping minority-owned businesses thrive.
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Skinphoria's Funding Challenges
- Jessie Hayes, owner of Skinphoria, was rejected by 19 lenders.
- Even after her first location succeeded, she struggled to secure funding for a second.
Challenges for Black Businesses
- Black-owned businesses often face funding challenges due to their smaller size and reliance on self-funding.
- They often lack access to angel investors or non-bank funding networks.
Banks' Reliance on CDFIs
- Banks often prefer lending to CDFIs, who work with low-income and minority communities.
- CDFIs provide technical assistance, like reviewing business plans and offering guidance.