Old National loan program to ‘level playing field’ for underserved businesses
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Evansville-based Old National Bank has created a loan program specifically geared for businesses that are minority or women-owned, in underserved communities, and often struggle to access capital. Lending teams from the Empowerment Small Business Loan Program will evaluate business loan requests, using metrics outside credit scores, which are often used to determine loan risk.
Old National quotes research data from the Brookings Institute which found that average credit scores for Hispanic and Black populations are lower by 33 and 57 points, relative to white populations. The bank says this can lead to challenges for people of color with the desire to attain new capital for a business venture.
“At its core, our Empowerment Small Business Loan Program is about leveling the playing field and partnering with outstanding women and minority entrepreneurs for whom the traditional system can be limiting and frustrating,” said Roland Shelton, Chief Strategic Business Partnership Officer for Old National. “When businesses grow, we grow.”
Old National says a $50 million pilot phase of the program has kicked off in the Chicago, Indianapolis, Milwaukee, Evansville, Minneapolis & St. Paul and Louisville markets. Old National has already approved more than $2.1 million in new loans through the program.
“The Empowerment Small Business Loan Program enables Old National to provide lending services to gifted entrepreneurs who might otherwise be denied access to capital,” said Old National CEO Jim Ryan. “When you strengthen the ability of traditionally underserved individuals to start or grow their business, the entire community benefits.”