• Skip to primary navigation
  • Skip to main content
  • Skip to footer
  • (216) 592-2332
Facebook Linkedin Twitter
Inquire Now!
Small business loan resources in ohio
  • About Us
  • Programs
    • SBA 504 Loan Program
    • Community Advantage
  • Community
    • Events
    • Event Photo Gallery
  • Small Business Resources
  • Contact Us
  • Blog
Menu
  • About Us
  • Programs
    • SBA 504 Loan Program
    • Community Advantage
  • Community
    • Events
    • Event Photo Gallery
  • Small Business Resources
  • Contact Us
  • Blog
Search
Close

Technology and the need for fair loans

Technology can pose a possible aid for business owners facing bias.

You are here: Home / Banking News / Technology and the need for fair loans

December 28, 2016 by boardmember1 Leave a Comment

How can women and minority business owners ensure they get a fair assessment when applying for an SBA loan? Unfortunately, bias still persists, and in some cases can discourage owners from pursuing funding that would prove useful.

American Banker recently made the case for technology to level the playing field. According to a new story, younger businesses in the loan space are looking at ways that algorithms and automation might improve lending rates for women.

The argument goes that humans will always have unconscious biases at play when deciding whether or not to award a loan. A process that takes that human bias out of the equation could theoretically offer fewer individual opinions that influence lender decisions. Various experts referenced in the source noted the issues impacting women business owners, one of these being Office of Capital Access Associated Administrator at the SBA Erin Andrew.

“Younger businesses in the loan space are looking at ways that algorithms and automation might improve lending rates for women.”

“The challenge for women-owned businesses is 90% don’t have employees, they’re individually run, independently owned businesses,” she said. “Generally if you have employees, you’re more likely looking to leverage capital, you’re growing, you’re accessing loans, you’re having an impact on your community.”

Obviously, it isn’t just women who face possible bias when looking for loans. A 2013 SBA study found that African-Americans and Hispanics invested “about half the capital” of White people between the years 2007 and 2010. This could reflect a lack of access to funds, denial or a number of other factors.

Although the promise of automated algorithms is great, owners can also trust firms like Growth Capital to provide good creative financing that helps your business no matter your background. Register here to learn more about the different programs that we offer, from the Community Advantage and SBA 504.

Banking News female business owner,  female entrepreneur,  minority business,  minority business owner,  SBA 504,  sba loan,  women in business

Reader Interactions

Leave a Reply Cancel reply

You must be logged in to post a comment.

Social

Follow along on social media.

Contact

IMG Center
1360 East Ninth Street, Suite 950
Cleveland, Ohio 44114

  • Get Directions
  • (216) 592-2332
  • Contact

Navigation

  • Have A Loan?
  • Small Business Loan Programs
  • Loan Calculator
  • Community
  • Small Business Resources
  • Annual & Loan Activity Reports
  • Blog
  • Our History
  • Events
  • Contact Us
  • Have A Loan?
  • Small Business Loan Programs
  • Loan Calculator
  • Community
  • Small Business Resources
  • Annual & Loan Activity Reports
  • Blog
  • Our History
  • Events
  • Contact Us

Newsletter

Stay up to date by subscribing to our newsletter.
Click here to sign up

© Copyright 2022 Growth Capital Corp · All Rights Reserved · Website designed by Jennasis & Associates