Tiffiany Howard (Political Science), Congressional Black Caucus Foundation senior research analyst Naomi Smith, and foundation intern Uju Nwaigwe of Georgetown University have published "Banks and the Black Community: What Can Major Commercial and Retail Banking Institutions Do to Better Support Black Entrepreneurs and Businesses in the U.S.?" This policy research report highlights existing strategies that have been successful in promoting black entrepreneurship, and identifies potential initiatives that could feasibly be implemented by large banks to have a tangible impact on the promotion of black business ownership. 

The authors arrive at several key findings. First, they determine that the poor credit worthiness of African American entrepreneurs, relative to other racial and ethnic groups, is a function of a lack of financial literacy. Second, that community development financial institutions have a proven record of investing in African American businesses. Third, that automating the small business loan process would remove the human element that contributes to the biases, which disadvantage black business owners when seeking a loan. And lastly, the supportive networks and institutions ⁠— such as faith-based institutions, historically Black colleges and universities, and community non-profits ⁠— which invest in and support African American business ownership are beginning to address the social capital deficit among African Americans, which is crucial to successful business ownership. 

This research was supported by the Bank of America and published by the Center for Policy Analysis and Research.