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Black, Hispanic entrepreneurs discriminated against when seeking small business loans

Editor's note: Press releases about research conducted by Sterling Bone, assistant professor of the Huntsman School of Business have been picked up online by publications around the world, including Yahoo Finance, Market Watch, the Boston GlobeBusiness News Daily, CNBC.com, Business Week and The Ogden Standard-Examiner.  He collaborated on the paper with Glenn L. Christensen, Garrett Research Fellow, and associate professor of marketing at the Marriott School of Management at Brigham Young University, and Jerome D. Williams, the Prudential Chair in Business and research director of the Center of Urban Entrepreneurship & Economic Development at Rutgers University. The professors were guests on Access Utah. You can hear that broadcast here. The following is a story that ran in The Washington Post:

Black, Hispanic entrepreneurs discriminated against when seeking small business loans

By , Tuesday, June 3, 10:00 AM

It’s not easy these days to get a small-business loan.

It’s even harder if your skin isn’t white.

New academic research reveals that minority entrepreneurs are treated significantly differently (see: worse) than their white counterparts when seeking financing for a small business, even when all other variables — their credentials, their companies, even their clothes — are identical.

Conducted by business school professors at Utah State University, Brigham Young University and Rutgers University, the study featured nine businessmen—three white, three black, and three Hispanic. Similar in size and stature, donning the same outfits, and armed with similar education levels and financial profiles, they visited numerous banks seeking a roughly $60,000 loan to expand the very same business.

Once inside the bank, their experiences were not so similar.

To read the full story click here.