Small BusinessSmall Business NewsLending to women and minority entrepreneurs increases under Biden

Lending to women and minority entrepreneurs increases under Biden

The Small Business Administration (SBA) has substantially increased lending to women and minority entrepreneurs under the Biden Presidency, improving access to capital for underserved communities.

Speaking to CNBC, SBA Administrator Isabel Guzman underlined the importance of supporting minority entrepreneurs. “To continue to under-invest and face these barriers in the communities is something that would limit our economy and our growth competitively,” she stated. “The systemic issues around access to capital are, of course, foremost.”

According to SBA data, the number of loans distributed to women-, Black-, Asian- and Latino-owned businesses has risen steadily since 2020, due in part to programs implemented by the White House. Since 2020, the Biden Administration has taken multiple steps to plug capital access gaps among minority entrepreneurs, such as streamlining the application process for obtaining a government loan and boosting funding for the Community Advantage program. Combined with the SBA’s own efforts to spur lending, these initiatives have translated into billions of dollars in additional funding for underserved small business owners.

Loans to Black-owned and Latino-owned small businesses have both doubled since 2020, while lending to Asian-owned enterprises rose roughly 36%. Women-owned businesses have also seen staggering improvements in credit access, obtaining 70% more government-backed loans under the Biden Administration. Loans to women and minority entrepreneurs have outpaced the average increase in small business lending, which rose 11% in 2023.

The Biden Administration’s and SBA’s commitment to improving credit access for underserved communities is worthy of praise, but substantial work still needs to be done, something Guzman is keenly aware of. In a statement discussing the increase in lending to Black-owned small businesses, the SBA chief noted the following: “While our progress delivered $1.45 billion to Black-owned businesses last year, we know there is still more work to be done to expand opportunity and make the American dream a reality for all.”

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Colin Velez
Colin Velez
Colin Velez is a staff writer/reporter for ASBN. After obtaining his bachelor’s in Communication from Kennesaw State University in 2018, he kicked off his writing career by developing marketing and public relations material for various industries, including travel and fashion. Throughout the next four years, he developed a love for working with journalists and other content creators, and his passion eventually led him to his current position. Today, Colin writes news content and coordinates stories with auto-industry insiders and entrepreneurs throughout the U.S.

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