Abstract
Discrimination and redlining in business lending have been cited as contributing to economic decline in lower-income neighborhoods. Until recently, bank regulators have not collected geographic data on business loans. Using new data collected by regulators, the author measures small-business lending flows to different types of neighborhoods in the Chicago metropolitan area. Although data limitations preclude a definitive finding of differential access to credit, lower-income and minority neighborhoods areas receive fewer loans after accounting for firm density, firm size, and industrial mix, findings that support the notion of geographic and/or race-based discrimination in marketing or approving loans.

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