Measuring Small Business Financial Health
Throughout the Great Recession and continuing into the recovery, small businesses have played an important role in creating jobs and stabilizing communities. Stories of small business owners overcoming obstacles to provide valuable services and employment are highlighted regularly by pundits, politicians and policymakers alike. However, little attention has focused on the question of what drives the financial health of these often young, often very small businesses.
The Changing Composition of Bank Branches in Seventh Federal Reserve District States
Across the United States, the banking office landscape has shifted substantially since the financial crisis in 2008, reflecting both long-standing trends of small bank closures, as well as more recent patterns of bank branch declines. These trends are playing out in the states of the Seventh District as well, where the number of banking offices has declined in each state, and increasingly, community banks are losing their share of branches in certain markets. Low- and moderate-income (LMI) neighborhoods in a few of the District?s most populous counties are nearly devoid of community banks.
Developing small businesses and leveraging resources in Detroit: an informed discussion among financial institutions, policymakers and Other stakeholders in Detroit
In October 2012, the Federal Reserve Bank of Chicago, the Michigan Bankers Association and the New Economy Initiative for Southeast Michigan co-sponsored a symposium in Detroit that brought together business experts, business owners, policymakers, funders and bankers to explore issues around access to small business credit and financing in Detroit. As Alicia Williams, vice president of the Community Development and Policy Studies (CDPS) division, explained in her opening remarks, the symposium was a follow-up to meetings hosted around the country by the Federal Reserve System?s Community ...
Reinvesting in the Greater Chatham Neighborhoods in Chicago: New Data and Insights from Practitioners and Policymakers
In the not too distant past, Chicago was known as the center of black capitalism in America, and within the city, the Chatham neighborhood reflected the heart of black middle-class aspirations. In recent years, residents of Chatham and other south side neighborhoods have confronted a barrage of challenges to their once stable communities. In hopes of stanching this tide, Congressman Bobby Rush, whose district includes the Chatham neighborhood, and scores of civic leaders, helped launch the Greater Chatham Initiative (GCI) in June 2016,1 to mobilize resources for a comprehensive set of ...
The impact of poverty on the location of financial establishments: evidence from across-county data
The location of bank branches is an important issue for consumer advocates and other groups that monitor access to financial services for low- and moderate income people. The proximity of banks and their branches to the places where people live and work is one basic element of mainstream financial access. The ability of people to choose from an array of financial products, especially those offered through the banking system, is fundamentally related to the economic well-being of a community.
Who has credit card debt?
For many households, the amount owed on their credit cards constitutes a large and growing share of their total debt. This article uses responses to the Consumer Finance Monthly (CFM) to examine credit card debt among households of varying incomes, educational attainment, and other characteristic. The CFM asks a different set of 150 to 300 households each month about their financial assets and debts, where they conduct their financial transactions, and what their expectations and attitudes are regarding their finance
Nonprime loans: a view from the local level
This article presents information on the location of subprime and Alt-A mortgages ("nonprime" loans) in the five states within the Federal Reserve Bank of Chicago?s district (Illinois, Indiana, Iowa, Michigan, and Wisconsin). The purpose is to identify the zip codes and communities most affected, or at risk of being affected, by foreclosures. We present a series of maps that show the zip codes with the highest numbers and highest concentrations of subprime and Alt-A loans, as well as the past-due and foreclosure rates in these neighborhoods. For illustration purposes in the print version ...
Pre-implementation findings from the neighborhood stabilization program
In 2009, states, counties and cities across the country applied for approximately $3.9 billion from the United States Department of Housing and Urban Development (HUD) to confront the problems of foreclosures and property abandonment. The Neighborhood Stabilization Program (NSP) is the principal federal response to address the impact of foreclosed properties on neighborhoods. NSP provides federal grants to every state and certain local communities to purchase foreclosed or abandoned homes and rehabilitate, resell or redevelop them to stem the decline of values of neighboring homes. Under ...