"It shouldn't be this hard": Small Business Credit Survey highlights funding challenges for startups owned by people of color
Firms owned by people of color are often very young, and many of the startup firms that launched during the COVID-19 pandemic were firms owned by people of color. For many of these startups, external funding is critical to the success of the business, but the Small Business Credit Survey (SBCS) shows that startups owned by people of color report less approval for financing than white-owned startups. When factoring in profitability or credit risk, the SBCS shows that gaps in financing from lenders persist.