Faculty Scholarship 1994 - Present

Expanding SME Access to Capital Through the Community Reinvestment Act (CRA)

The Community Reinvestment Act (CRA) of 1977 aims to equalize opportunities for small business credit regardless of community income. CRA regulation and bank reporting attracts debate from the banking industry, community activists, and economists and is an appropriate concern for entrepreneurship scholars. Bank performance data show mixed results for small businesses in LMI areas and raise questions about underutilization. The CRA has undergone reforms that attempt to reflect the realities of the credit market and the banking industry. These new rules incorporate the community activists' desire to strengthen the CRA while decreasing the CRA's administrative burden satisfying the banking industry.