Posted on 11/21/2019 5:46:03 AM PST by karpov
Female entrepreneurs are more likely than their male counterparts to see their loan applications rejected or underfunded, and New York City is launching a program to close the gap.
The Department of Small Business Services’ $5 million program will offer lines of credit up to $100,000 at about 12% interest to women-owned businesses, said Gregg Bishop, commissioner of the department. Entrepreneurs with credit scores of at least 620 who have been in business a year or longer and earn $50,000 or more in annual revenue can apply.
The department surveyed more than 1,600 entrepreneurs in New York City for a 2015 report that found women are more hesitant than men to take out high-interest loans.
“Women tend to be more risk averse,” Mr. Bishop said in an interview. “But when you ask women and male entrepreneurs where they want to be in five years, they have the same goals.”
Lines of credit are particularly helpful for women entrepreneurs who only want to borrow and pay interest when they need funding, as opposed to applying for large loans, said Nancy Carin, executive director at the Business Outreach Center Network, a nonprofit small-business development organization. Lines of credit also provide fast access to cash, particularly helpful for businesses like bakeries that might need quick capital during busy holidays.
“Once you’re approved for a line of credit, you can use it strategically, and that positions a woman entrepreneur to respond to market conditions and opportunities,” said Ms. Carin, whose organization works with Small Business Services on loan and other funding programs for women entrepreneurs.
The program’s 12% interest is a reasonable rate for borrowers with a credit score of 620, Ms. Carin said.
The program is a public-private venture, with Goldman Sachs 10,000 Small Businesses contributing $5 million
(Excerpt) Read more at wsj.com ...
What if you self-identify as a female entrepreneur?
Sure sounds like Discrimination based on Sex, have the FEDS ARRESTED them for this blatant violation of Law??
Exactly. I’m a woman, too.
I’m even Native American, tribe of Levi. Mel Brooks was a founding member.
> What if you self-identify as a female entrepreneur? <
You need to take that one step further. Self-identify as a female entrepreneur with a high credit score.
"I cant be responsible for every under-capitalised business in America" - Hillary Clinton.
Well I can self identify as a female for the $100,000. And if they do not give it to me I WILL SUE! Take that Libs!
12% interest
New York, you want to help (all)entrepreneurs?
Easy, begin by looking at all your rules, laws,regulations and high taxes, that make it difficult for a business to start and thrive.
If I was to guess, there is probably a lot of “off the book” work being done by people who are unable to get the proper licenses to do work in New York.
Making predictions is for fools, but I will play the fool here and predict most of these loans will default.
A side prediction would be most of these loans will go to friends and family of the politicians.
You said it well.
If you’re an entrepreneur of any sex with a 620 score and 50k in revenue, you can beat 12% with a credit card. I’m not one to pick nits but this does border on predatory lending. Definitely virtue signaling.
If they’re minority women, do they get double?
Guessing they don’t get all the tax and utility freebies Amazon and other big businesses do.
My question as well.
Suppose some clever man takes advantage of the current zeal to embrace “transgender” peoples, and a man claims to identify as a woman to take advantage of this woman only program. Then what? Will the liberal zeal to bend over backwards to prove that they are liberal prevail, and thus loan money to that man?
Or will anyone be courageous enough to say, “that’s a man, baby”, and deny an obvious scheme to defraud the taxpayers by getting a loan he’s not entitled to?
Why? All such applications should be reviewed on a neutral basis, stripped of PII. This would make the process gender and race blind. I would have thought this was already the case, but maybe not in NYC. Surely NYC doesn't want to be encouraging imprudent borrowing on the part of financially vulnerable groups./sarc
Some will make it. Many will default. Some will take the money and run.
A bar can’t even have “ladies night” anymore.
How can this be legal?
My first thought, too.
Talk about predatory lending practices!
NY going into the loan shark business.
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