Study on SBA Lending Practices

Six research questions were investigated in this study. These research questions were as follows:

1. Does the approval rate in the award of SBA loans vary between AfricanAmerican applicants and KoreanAmerican applicants?

2. Are there factors other than racial or ethnic bias that explain any variation in approval rates in the award of SBA loans to AfricanAmerican applicants and KoreanAmerican applicants?

3. Does the mean loan amount of SBA loans vary between AfricanAmerican loan recipients and KoreanAmerican loan recipients?

4. Are there factors other than racial or ethnic bias that explain any variation in the mean loan amount of SBA loans to AfricanAmerican applicants and KoreanAmerican applicants?

5. Does the total loan amount of SBA loans vary between AfricanAmerican loan recipients and KoreanAmerican loan recipients?

6. Are there factors other than racial or ethnic bias that explain any variation in the total loan amount of SBA loans to AfricanAmerican applicants and KoreanAmerican applicants? Based on the findings of the research performed for this current study, a conclusion was drawn that racial and ethnic

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hich discrimination is applied to lending vary. Overt refusal to lend money to an individual because of racial or ethnic background is not only illegal in the United States, it is also relatively rare. Such legal prohibitions are often circumvented in a number of ways, however, such as (1) a failure to offer certain loan programs to certain individuals, and (2) rejection on the basis of other factors that appear unrelated to racial or ethnic background, but which, in fact, may be contrived, and may not be applied equally to white applicants (Foust, 1992, p. 43). Although illegal, this practice often results in the denial of funds to members of racial and ethnic minorities, and even to neighborhoods that are predominantly occupied by members of racial and ethnic minorities (Schiller, 1993, p. 100). This latter practice is known as "redlining." Housing discrimination on the basis of racial and ethnic background has existed in the United States from the time of the country's earliest history. As late as 1969, "white only" housing was openly advertised in the Southern states, and, in Northern urban areas such as south Boston, violent racial harassment continues in the 1990s in an attempt to deter blacks from moving into the nei
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Some common words found in the essay are:
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Approximate Word count = 7033
Approximate Pages = 28 (250 words per page)

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