The US has seen a small business boom, with people of color playing a significant role. However, historically, minority-owned businesses have grown slower. SBA loans to Black-owned small businesses have doubled since 2020, addressing systemic issues around access to capital.

The Biden Administration has increased loan growth for Black businesses and underserved communities through initiatives like the Community Advantage program and Women’s Business Centers. Community development financial institutions (CDFIs) and recent changes to the loan program are contributing to this growth. However, lending access remains a barrier for Black entrepreneurs.

Latino and Asian business loan growth

The SBA has increased lending rates for minorities, particularly Latino-owned small businesses, with loans over doubled since 2020. However, these communities often face challenges in accessing capital. The SBA is also focusing on female entrepreneurs, providing over $5 billion in loans in fiscal 2023. The goal is to deliver the American dream of business ownership to more Americans.