California Banks failing small business

“Not one of California’s 15 major business banks did a good job of lending to small businesses, making it difficult for these critical businesses to access capital and provide much needed goods, services and employment in lower income neighborhoods” according to a report by the California Reinvestment Coalition.

Among its findings: Citibank was the only bank that did a satisfactory job in all six California counties, California’s largest bank- Bank of America offered the least access of any bank and received a failing grade for its small business lending, Wells Fargo Bank received a C grade- it lent more than its share of community deposits but was not good at lending to small businesses in California’s lower income neighborhoods, In Los Angeles U.S. Bank got a perfect score in offering access to small businesses, In contrast City National Bank received an F in its headquarters county of Los Angeles.

“This study highlights the institutional barriers that small and minority-owned businesses continue to face when trying to expand their businesses. Since small businesses are the key to opportunity and hope in lower income communities, these barriers cut the heart out of the American ideal of equal opportunity,” said CRC Executive Director Alan Fisher. “This is a situation that must be remedied by major financial institutions,investigated by the U.S. Congress and scrutinized by the federal regulators who are responsible for overseeing these lenders.”