Small Business

Small businesses are widely acknowledged to be the engine of economic growth for any economy.  The California Reinvestment Coalition (CRC) has seen the support and growth of small businesses in low-income communities and communities of color as a critical focus of its work.  These businesses, often minority- and women-owned, encounter much greater difficulties receiving conventional loans from banks than larger businesses or those located in wealthy communities.

In this work, CRC has focused on three particular issues. 

•    First, support for nonprofit organizations that provide technical assistance to these businesses.  This is because such businesses often do not have the resources to get critical assistance to bolster their marketing, human resources and other capacities.  As a result of dialog with CRC members, Wells Fargo and Comerica Banks have put in place grant initiatives that build the capacity of these nonprofit organizations statewide.

•    Second, investments to build the capacity of nonprofit community development corporations and financial institutions that offer more accessible credit to these critical businesses.

•    Third, efforts to make bank small business loan underwriting more flexible and gain access to business loan denials where community lenders may be able to make the loan.