Many traditional financial institutions struggle to meet the needs of minority households. Filene, Visa, and the Ford Foundation conducted this research to find out why.
Small Business Lending & Independent Worker Resource Guide
Small businesses are central to the U.S. economy and society, yet the lives of small business owners and independent workers are far from easy. Your financial institution can begin supporting entrepreneurs in your community today. Download our free research-based small business lending and independent worker resource guide today.
Small Business Lending & Independent Worker Resource Guide Details
Most small businesses have below-average incomes, lack access to many of the tools that businesses need to thrive, and struggle to acquire needed financing – relying instead on personal finances and informal networks of friends and family. The importance of small businesses and the myriad challenges they face would seem to make them a natural fit for credit unions, community banks, and other community-oriented financial services providers.
Filene, working in collaboration with Visa, believes that providing affordable and responsible funding, services, and support, especially to those who struggle to find them provides credit unions and other community- oriented financial institutions with unparalleled opportunities—to improve financial lives of consumers and the well-being of communities while also meeting organizational growth and impact objectives. Moreover, community-oriented financial institutions may be best positioned to see the full picture of small business ownership—recognizing that the impact of small business success or failure reaches far beyond the business itself.
This guide is designed to inspire and support those efforts.
What does this mean for my financial institution?
There has been steady growth in overall business lending by credit unions. Over the past three decades, the percentage of credit unions offering business loans over $50,000 and the amount of those loans has grown. Nonetheless, it is clear that there is an opportunity for credit unions credit unions and other community-oriented financial institutions.
- There remains unmet demand for small business lending, as year-over-year results from the Small Business Credit Survey shows that 40% or more of small businesses are submitting new loan applications.
- Indications show that small businesses are open to considering credit unions and community banks.
- One critical opening may be in giving small business owners more control through a range of wraparound services that accompany core banking products.
The bottom line: There is a tremendous untapped opportunity for financial institutions to support small businesses and independent workers. Download the Small Business Lending and Independent Worker Resource Guide to get started today.
Filene thanks Visa Inc. for its generous financial support as well as critical guidance from its team.