Loans | Impact Entrepreneur

Banks Need to Use Equitable Underwriting to Grow Small Businesses

Banks Need to Use Equitable Underwriting to Grow Small Businesses

by Tynesia Boyea-Robinson | Blended Finance & Philanthropy, Editor's Picks, ESG Investing, Financial Inclusion, Global, Impact Economy, Impact Investing, North America, Policy & Regulation, Racial Equity & Justice, Regions, SDG 10 - Reduced Inequalities, SDG 8 - Decent Work and Economic Growth, SDGs, Stakeholder Capitalism, Systems Change

Banks and other financial institutions use outdated and inequitable practices to determine who receives loans and who is worthy of an investment. These practices are based on out-dated notions of “risk,” going back to the antebellum South in which former...