28 Jul 2021 Biden Threatens Black Lending Options
During the Trump Administration, banking regulations on lenders were eased. But Joe Biden is expected to try to rachet up new rules. This new red tape may take a growing financial tool – online lending platforms – away from minority entrepreneurs.
In a commentary that appeared in the Atlanta Daily World, Project 21 member Richard Holt writes that “[t]he left’s anti-growth agenda is setting the black community up for failure once again.” He adds:
We desperately need more growth to rebuild the post-COVID American economy. Yet liberals are hard at work waging war on business in general, and on minority entrepreneurs in particular.
Citing the fact that blacks seeking loans have suffered lending discrimination in the past – including smaller lines of credit and outright denials – Richard suggests that online lending is a more trustworthy means for wary black loan applicants to find credit:
Online lenders largely use a series of data analytics to decide their loan process that can factor out things like race and gender. Blacks are looking to online lenders. Not just for convenience, but because we all know traditional banks won’t be as responsive.
“[B]lack America can catch up, but not by limiting options,” Richard remarks. “Instead, America should welcome and embrace online lending.”
With access to online and other lending opportunities, an increase in black wealth will “create a ripple effect throughout the black community and ensure that wealth is attained broadly in our community and beyond,” writes Richard. But this cannot happen with the threat of “politicians who sabotage our progress” through new financial regulation.
To read all of Richard’s commentary – “Limiting Access to Online Lending Will Hurt Black Entrepreneurs” – click here.