Black Business Owners Face An Uphill Battle Securing Bank Loans

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“We have 750-760 credit score. We pay all our debts.' Despite bringing in $200,000 in profits, year after year, Freddie Lee James still can't get a business loan. Black owners' applications are rejected at twice the rate of whites owners'. stlpublicradio

Freddie Lee James Jr., owner of Freddie Lee's Gourmet Sauces, starts a batch of his sauce at his commercial kitchen space near downtown St. Louis.His home-whisked Ghetto Sauce made him the king of cookouts. Family and coworkers would clamour for the zesty, sweet and spicy barbecue sauce. After years of their encouragement and five years before he was to retire from his construction job, he decided to take it to the next level.

Banks deny loan applications from black business owners more often than any other racial group, according to Galen Gondolfi, a senior loan counselor and spokesman at the nonprofit, said the Jameses' frustrations are not unwarranted. “They have to be very careful about the businesses that they lend to, because having bad business loans is one of the leading causes of banks actually going out of business,” Gines said.

One way Davis helps his clients obtain loans is by making sure they meet the banks’ industry standards for debt service ratio — the company's ability to repay a loan.

 

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stlpublicradio Join a Black Owned Bank and/or a Federal Credit Union and move all of your accounts away from the bank that said no... Let them know what you are trying to accomplish prior to joining... Only do business, with financial institutions that support you...

stlpublicradio Check out BNT vs City of Greensboro. 4th Circuit found Discrimination in favor of Black Company. Loan denied dispute excellent credit and over 300k in available equity as collateral.

stlpublicradio We need to buy and sell amongst each other👌

stlpublicradio Knoxville, Tennessee is the worst when it comes to lending to black owners. Every black owned businesses are closed and it looks like ghost town, mean while on the west side of town (white owned) businesses prosper😕 they want our money to prosper their businesses.

stlpublicradio So? Go start a bank. The Jews started Goldman Sachs, the Italians started Bank of America, the Irish got First Boston. Black folks just complain

stlpublicradio Blacks Americans should know by now that white Americans will do everything and anything to keep them from competing on a fair playing field. Black Americans need to do what they seem incapable of doing, UNITE.

stlpublicradio I seriously wish we could identify the lenders and put them on blast. Meanwhile we can get the rejection excuses from them and see what we can break down to break through

stlpublicradio The Webinar for Black Women Founders in Need of Capital - Black Enterprise

stlpublicradio Small Business Financing, Black People and Venture Capital via YouTube

stlpublicradio What does personal credit scores have to do with getting business credit? Your personal credit score (FICO) ain't got nothing to do with business credit (Paydex for example). Somebody not putting these folks on game. 😔😔😔

stlpublicradio When we left our neighborhoods, we left our banks. Now, only predators who dont give us loans are there. We need ot move back to our own communities and start frequenting black businesses. PERIOD. Otherwise, stop complaining - They have NEVER fully accepted us after integration.

stlpublicradio Reparations2020

cynthiamckinney stlpublicradio And if they do manage to get a loan it’s at loan shark rates.

stlpublicradio CarverBankNYC

stlpublicradio ADOS life.

stlpublicradio I am going through it myself with my food truck. First credit score then not enough collateral, or no business credit history.

stlpublicradio Integration was the worse thing we pushed to be apart of as ADOS.. We need to separate.😳

stlpublicradio B_REInvest this is why i want you to secure, set up, and dominate crowd funding (in my head playing the numbers game)

mookanomics stlpublicradio ADOS gets the needs of entrepreneurship correct. And calls for bank audits focused on exposing these discriminatory loan practices for the purpose of black economic empowerment.

cynthiamckinney stlpublicradio But then they would have to call it Sellout Sauce.

iamDOAS stlpublicradio 🗣AMERIKKKA, SUCKS WITH ALL ITS BACK DOOR BS AGAINST MY PEOPLE. WE WANT JUSTICE FROM SEA TO SHINING SEA🇺🇸💯✅

cynthiamckinney stlpublicradio Something tells me this is riddled full of deceitful cherry picked facts

cynthiamckinney stlpublicradio private money lending

cynthiamckinney stlpublicradio What are the specs to leverage, and income to loan ratios. That is what matters to banks, not skin color. If already have too many big loans banks or income is edged out to loan, banks worry. Have you seen the repo market lately. NO LIQUIDITY.

stlpublicradio The finish line is always moving, first you need a 600 credit score now it 800-900 and Banks aren't even lending to you at 600-700 middle class. So Black people need to invest in each other.. not like these take yo money conferences to sell you information that free.

stlpublicradio We need more black banks

stlpublicradio My banker pretty much told me to go somewhere else.

stlpublicradio This Is NOT EQUALITY.. CBC YOU WANNA CHIME IN... MAYBE GET INVOLVED AND DO SOMETHING .. OR NO

stlpublicradio Black people could create more banks , credit unions etc in less time than it would take to get reparations from the same people and banks that have oppressed us. believe in self first

stlpublicradio Barak Obama some of the worst B.O. ever 🤢🤮

stlpublicradio This article is a complete lie I own a business and I have to block lenders daily from calling me for loan,no debt for me

stlpublicradio That is why we have more liquor stores than food stores in our communities. This is why we have immigrants with stores in our communities. Selling shit like cigarettes and malt liquor to us from behind partitions. Banks and the govt know what they are doing. Sad. Warren2020

stlpublicradio Its sooo obvious that black ppl around the racist world are treated differently...

stlpublicradio Reparations2020

stlpublicradio ANOTHER REASON WHY WE NEED REPERATIONS ADOS PERIOD

stlpublicradio And if Freddie was finally paid what is owed Reparations he would not be in this predicament. Don't send well wishes. Make sure your candidates have a specific BlackAgenda ADOS or they will not get our vote.

stlpublicradio ...and the SBA over the past 2 decades useless n helping blacks to get needed loans fr their business.

stlpublicradio Need more Black lenders. Then, where do they get the money? Maybe some of the wealthy Black people in this country will consider investing startup capital into reputable Black business owners looking to start lending. Oprah SnoopDogg RealByronAllen Beyonce MariahCarey

stlpublicradio Nothing for the blacks

stlpublicradio REPARATIONS

allenorresq stlpublicradio Support black own banks people.

stlpublicradio I remember as a kid in the 70's, black business owners talking to my mother about not getting loans for their business.they all went out of business.

stlpublicradio mrs_bleu

stlpublicradio ADOS

stlpublicradio Small business tidbit. Nobody gets a business loan! There’s no capital to backup the loan. If the business fails, how does the bank recoup their loss?

stlpublicradio MagicJohnson this guy needs an assist.

stlpublicradio Dude! Military! Wow Dude!😯🌝💨 My friends,co workers,all racially diverse! We came from the ghetto, shit,holes with no credit,no money&GED But! 🧐Self-improvement without excuses paid off! Now! my friends have business, daycares, new cars, entrepreneurship, homes. Wow! Dude!😇

stlpublicradio One of many reasons marwilliamson has a Reparations plan. Marianne2020

stlpublicradio Black ownership and black entrepreneurs up over 200% since Trump took office.... Fake News....

stlpublicradio realDonaldTrump ‘s Merica!!!!

stlpublicradio Underwriters are RACIST

stlpublicradio Doesn't make any sense..Thanks for sharing.. this is not a problem that should be swept under the rug! Your profit is an accomplishment that not very many businesses accomplish. Maybe a lawyer could help..shared

stlpublicradio He’s making 200k profit year after year? Why does he need a loan?

stlpublicradio Yeah, say what you want about the current President, me too movement, legalized weed, Chase bank investing with minorities, or any other made up distraction. The truth will always be: The USA cannot seem to beat the ground-in cancer of racism.

stlpublicradio The borrower is enslaved to the lender

stlpublicradio So wrong!

stlpublicradio Is it racist if it's an algorithm?

stlpublicradio ”Black entrepreneurs can face significant obstacles. Among them is a lack of intergenerational wealth and insufficient knowledge about how the banking system works. Gines said racial discrimination only widens that gap.” An example of why reparations are needed.

stlpublicradio ewarren

stlpublicradio America, since 1691.

stlpublicradio call oprah

stlpublicradio Fake

stlpublicradio How much do you want to borrow Freddie Lee James.

stlpublicradio NPR, you gonna buy 'ghetto sauce'? Maybe it has to do with where they want to open and what the business is.

stlpublicradio Maybe their business plans aren't as good. It's ignorant to jump to the conclusion of racism if you don't know the whole story.

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