SOLVING ECONOMIC INEQUALITY THROUGH PERSONAL LOAN ACCESS

Black and indigenous people of color in the US have less access to low-interest loans, pay high interest on government-backed loans, and pay an average of twice as much as their white counterparts in bank fees. The Lentils team has designed an initiative that employs long-term capital through public and private means to provide low-interest loans and free checking accounts. The team interviewed individuals and business owners to better understand loan barriers, and conducted a comparative analysis of loans by type, region, interest rate, and qualifications. It created a database to help increase seed funding for minority-owned businesses by 8 percent and decrease the average interest rate for personal borrowers in Central Brooklyn by at least 3 percent. The team’s long term goals are to reduce the interest divide by at least 50 percent and restore long-term wealth-building.