Predatory lending practices lead to the failure of many Black Businesses

Lorraine Lavender-Sams

At times, we present articles that are relevant to experiences, and this article definitely fits that model. During the past eight years, particularly after COVID-19, when the world was made aware of the inconsistencies of funding for Black businesses, the door was opened, and predatory lending companies walked right in, set up shop, and became more profitable than ever. For many reasons, financial assistance from traditional banks and Community Development Financial Institutions (CDFIs) is unattainable. As a result, many Black and small businesses carry ongoing loans with Merchant Cash Advance (MCA) Loans, which are equivalent to business payday loans or (for mature readers) loan shark payments. The reality is that these MCAs bite into your business, latch themselves onto your predicted income, and have you robbing Peter to pay Paul…

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Scoopvizion (Digital) - 1 Issue, August 2024

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