Resources

Research from our organizations: 

Entrepreneurs of color have less access to financial institutions. To better understand the challenges faced by business owners of color seeking access to capital, NALCAB and National CAPACD conducted a survey, asking their members questions about how the businesses they serve acquire small business credit. Across the 43 organizations surveyed, respondents reported that 70 percent of the small businesses they serve are underbanked, meaning that although they have access to mainstream banking institutions, they may be unable to utilize many of the financial products offered by banks. Among those surveyed, they reported that their clients are most likely to rely on family and friends/equity partners or personal credit cards as sources of credit for their businesses.

Read the 2019 report: Small Business, Big Dreams: A Survey of Economic Development Organizations and Their Small Business Clients in Low-Income Asian American and Pacific Islander Communities In the report, National CAPACD finds that Asian Americans and Native Hawaiian & Pacific Islander business owners are more likely than any other racial category to utilize personal resources for financing their start-up costs.  Many AA and NHPIs rely on friends and family for access to capital and/or unsustainable sources of funding that make them susceptible to predatory loan schemes. 

• 1. Research released in 2018 by the Small Business Administration (SBA) Office of Advocacy (using 2014 Annual Survey of Entrepreneurs data) concluded that AA and NHPIs were more likely than any other racial category to utilize personal resources for financing their start-up costs. 

  2. AA and NHPI micro-entrepreneurs experience significant challenges securing capital from mainstream U.S. financial institutions, 

  3. AA and NHPI business owners need trusted resources and service providers that can provide culturally competent, one-on-one technical assistance and business counseling.