For the last year plus, the ICA team, in partnership with CNote, has been working on a research and data initiative to promote the work CDFIs are doing to advance racial and gender equity. We've conducted a 10-year look back study to analyze perceptions vs realities of risk in lending to women of color borrowers. Our initial analysis showed that there were no statisticalyl significant differences in the credit risk among women of color and other groups of borrowers.
Now, we want to use our findings and expand on them to build a stronger evidence base to fight back against unfair perceptions of risk in lending to women and people of color.
Now we’re looking for new partners (and more data) to grow our evidence base. We are looking for more CDFIs to join our research and data initiative.
About the project:
This project is a collaboration between ICA, CNote, and several CDFIs. Our goal is to build a database of historical lending data to update and challenge conventional understandings of risk in lending to women of color, and to bring more attention to the important role that CDFIs can play and already do play in advancing gender and racial equity in business financing as a whole.
Women of color entrepreneurs face many challenges in the business ecosystem. Chief among them are unfair perceptions of risk in lending. Women of color are charged higher interest rates, are less likely to get loans, and given lower amounts overall.
More data = more impact:
We believe that with more data, we can help investors have a better understanding of risk. So far, we’ve conducted a study using the data we currently have and confirmed that women of color are not riskier borrowers. Now, we are looking to strengthen the analysis and expand the database to explore other questions related to risk. And we can only do this with your help. Please join us and be a part of this ground-breaking research and gain access to data. Any and all shared data will be de-identified, aggregated, and secured.
How to get involved:
1. Share your lending data with us – join us by filling the Google Form here to get started. Once you complete the form, we will follow up via email to share our data request template.
3. Please email me at firstname.lastname@example.org if you have any questions.
Register for the webinar: