Main Street’s minority owners need loans to grow, but access to capital remains inequitable

As main street businesses are continuing to make a comeback post-pandemic, they’re facing down the triple threat of supply chain headwinds, labor constraints and historic inflation. For some, borrowing to invest, grow, or simply stay afloat, is top of mind.

Data from Goldman Sachs’ 10,000 Small Business Voices “Small Businesses on the Brink” survey finds that 86% of owners find broader economic trends are having a negative impact on business. Nearly 30% of owners are expecting to take out a line of credit or loan for their business this year, and 31% say they feel very confident in their business’ ability to access capital. But Black-owned small businesses reported expecting to borrow at a higher rate of 48%, with less confidence about their ability to gain access to capital, at 19%. The survey was released in late January, with responses from more than 1,400 small business owners, including 225 Black-owned businesses.