In Chicago, the flow of capital—including mortgage and small business lending—is shaped in part by race and place. Disparities in lending in Chicago have been well documented, with market investments more readily flowing to predominantly white neighborhoods that have high average incomes, widening gaps in capital access for households of color and households with low and moderate incomes.
This report builds upon work exploring neighborhood-level trends in capital investments inside Chicago by quantifying mortgage and small business lending relative to consumer demand by race and neighborhood location and demographics. In addition, we provide a qualitative analysis of the challenges and needs among communities of color and communities with low incomes addressed in interviews with five Chicago community organizations and lenders engaged in community development financing, small business and housing programs, and grantmaking.
Measuring the Flow of Private Capital in Chicago’s Communities | Urban Institute