From Barriers to Breakthroughs: The Path to Financial Equity

Historically, Black communities have worked to overcome financial barriers, from exclusionary lending practices to systemic disparities in credit access. Despite these challenges, Black entrepreneurs and business owners have built industries, created jobs, and driven economic progress—yet systemic inequities continue to make access to financial well-being difficult.

At Ascendus, we believe in financial ascension for all—a future where Black entrepreneurs have equitable access to the financial tools they need to thrive, invest, and build generational wealth. 

Understanding the Credit Gap: The Biggest Barrier to Economic Growth

Access to credit remains a significant challenge for Black entrepreneurs. A substantial portion of Black consumers have subprime credit scores, which limits their ability to secure business loans with favorable terms (Financial Health Network, 2024). Additionally, shorter credit histories among Black borrowers contribute to lower credit scores, further restricting financial opportunities and increasing borrowing costs (Financial Health Network, 2024).

Credit history and scores play a critical role in financial mobility, affecting loan approvals, interest rates, and overall business growth. Addressing these systemic barriers is essential for fostering economic equity and enabling sustainable entrepreneurship.

Financial Assistance Gaps: When Support Falls Short

Even when Black entrepreneurs seek financial assistance, they often face additional challenges beyond credit scores. Many experience higher loan denial rates, making it more difficult to secure the capital needed to expand their businesses (Financial Health Network, 2024). Without access to traditional funding sources, some business owners turn to predatory lending alternatives, which can create cycles of debt and financial instability.

Furthermore, limited access to credit-building opportunities remains a barrier. Black borrowers are less likely to have family members with strong credit histories who can assist them in establishing credit through joint accounts or authorized user arrangements (Financial Health Network, 2024). This lack of intergenerational financial support makes it more difficult to build strong credit profiles over time.

How Ascendus is Changing the Narrative

We recognize that true financial support starts with access to resources and opportunities. That is why we are committed to:

• Expanding access to fair capital for Black entrepreneurs, ensuring they can secure funding without predatory interest rates.
• Providing financial coaching to equip business owners with credit-building strategies and sustainable financial practices.
• Offering innovative programs like the Get Ready Program, designed to help small business owners improve their credit standing and access better funding opportunities.

 Celebrating Black Resilience and Economic Power

This Black History Month, we honor the entrepreneurial spirit and resilience of Black business owners. But celebration alone is not enough—we must continue breaking down financial barriers to ensure economic equity for all.

We remain dedicated to advocating for financial inclusion and creating pathways for long-term success. Supporting Black-owned businesses, advocating for equitable financial opportunities, and fostering a future where every entrepreneur has access to the tools they need are all essential steps toward building a stronger, more inclusive economy.

Because when Black businesses thrive, entire communities rise.

References: Financial Health Network. (2024). Pulse Points: Disparities in Credit Scores and Length of Credit History. Financial Health Network