Minority-Owned Businesses Shut Out as Loan Denials Soar

A recent LendingTree analysis reveals significant disparities in business financing approvals, with Black-owned businesses experiencing a 39% rejection rate in 2024, followed by Hispanic-owned businesses at 29%, compared to just 18% for white-owned businesses. Small businesses with 1-4 employees faced denial rates five times higher than larger firms, while businesses with 3-5 years of operation paradoxically experienced the highest rejection rate at 29%. SBA loans and lines of credit proved most difficult to secure with a 45% rejection rate, as high interest rates, inflation, and economic uncertainty have made lenders increasingly cautious about extending credit.