• About the Project
1.6.2 Small Business Loans by Race and Gender
Why is this important?
Half of all jobs in the Commonwealth are created by small businesses and in Boston - a city of neighborhoods - many small businesses are a source not only of economic development but also social capital.  They serve as gathering places as well as showcases for local subcultures in addition to creating jobs and a sense of community investment.  It is important that such businesses have access to economic resources, which enable them to start and expand their enterprises, and that business loans reflect Boston’s changing demographics as a measure of its civic health.
How are we doing?

Making up over 40,000 establishments and generating around $15 billion in revenue, Boston's small businesses are the economic heart of many of Boston's communities. Many of these businesses are family owned, and frequently employ only 1-5 individuals - often family members. The data with regards to loans in this market is difficult to follow however, as many small business owners prefer to borrow money from their extended families and friends, making it difficult to track through official datasets.

Despite this, we can see that after the 2008 recession brought low both loan volumes (from 47,898 loans in 2007 to 15,663 loans in 2009) and loan amounts ($1 million in 2007 to $640,000 in 2009) in minority communities across Massachusetts, they have since recovered to pre-recession dollar amounts, if not in pre-recession loan amounts ($1.2 million and 31,186 respectively, in 2014).

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