In the latest issue of IGPA's Policy Forum, scholars Cedric Herring and Loren Henderson examine Chicago's Minority and Women's Business Enterprise Program and discrimination in business credit markets. 

In today's difficult economic climate, small businesses are experiencing many challenges in securing credit to fund their operations. Most lenders are conservative in granting business loans. Yet minority and women business owners may face additional hurdles. Herring and Henderson's research, discussed in Policy Forum, found that despite protections against unlawful discrimination under the Equal Credit Opportunity Act, women and minority applicants are more likely than other applicants to be denied loans or receive less favorable terms due to their race and/or gender.

How much are lenders' decisions influenced by racial and gender-related factors that go beyond borrowers' creditworthiness? What effect does this have on business startups' ability to secure credit lines? How can Illinois combat this discrimination?

Click here to read Policy Forum (PDF).