Special Purpose Credit Programs for Small Businesses | American Bankers Association

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Special Purpose Credit Programs (SPCPs) are authorized by the Equal Credit Opportunity Act (ECOA) and Regulation B, to help for-profit creditors meet special social needs and benefit economically disadvantaged groups. SPCPs are encouraged by regulators and industry advocates as additional tools to address inequities in access to capital for consumers and small businesses.

Although SPCPs have been permitted for more than 40 years, and are available for all types of credit products, very few lenders have implemented them to support underserved small business owners in part because there was little information about these programs. As a result, ABA has curated these resources to support lenders in creating SPCPs.

SPCPs:

Allow revised pricing or credit underwriting requirements in order to extend credit to a class of persons who customarily might be less likely to receive credit, or who would receive it on less favorable terms
Require a written plan that identifies the class of persons the program is designed to benefit
Set forth the standards for extending credit under the program

Review regulatory guidance on SPCPs.

How It Works

Special Purpose Credit Programs are allowed to favorably consider credit applicants based on factors such as race, ethnicity, or religion.

Checklist

ABA developed a checklist to help you develop a go-to-market plan for a Special Purpose Credit Program.

Webinar: Special Purpose Credit Programs

Learn how some banks are moving forward on offering Special Purpose Credit Programs to expand credit offerings for traditionally underserved segments of their communities.

Register for the Webinar

Case Studies

Learn how two banks have implemented Special Purpose Credit Programs to support underserved small business owners.

Read the Case Studies

Resources by Population

Multiple Populations (POC/Women)

Small Business Credit Survey Highlights Funding Challenges for Startups Owned by People of Color, published by Fed Communities
2023 Report on Employer Firms: Findings from the 2022 Small Business Credit Survey, published by Fed Small Business
2023 Report on Nonemployer Firms: Findings from the 2022 Small Business Credit Survey, published by Fed Small Business
2023 Report on Startup Firms Owned by People of Color: Findings from the 2022 Small Business Credit Survey, published by Fed Small Business
The State of Diverse Businesses in California - Economic, Fiscal, and Social Impact Analysis, published by the California Office of the Small Business Advocate
2022 Women & Minority Business Owner Spotlight, published by Bank of America
Minority Business Ownership Differs by Sector, published by the United States Census Bureau
ROI Report: Creating a More Equitable Entrepreneurial Ecosystem, published by the Transparent Collective
Reducing the Racial Financial Health Gap: The Opportunity for Responsible Fintech , published by PayPal, Wiley College, Dillard University and the CBC Institute
Small Business Credit Survey: 2021 Report on Firms Owned by People of Color, published by the Federal Reserve
National Report on Early-Stage Entrepreneurship in the United States, published by Ewing Marion Kauffman Foundation
Secular Trends in Minority-Owned Businesses and Small Business Finance, published by Federal Reserve Bank of Chicago

Black Businesses

2023 Report on Employer Firms: Findings from the 2022 Small Business Credit Survey, published by Fed Small Business
Who is Driving Black Business Growth? Insights from the Latest Data on Black-Owned Businesses, published by Brookings
Minority Business Ownership Differs by Sector, published by the United States Census Bureau
The State of Diverse Businesses in California - Economic, Fiscal, and Social Impact Analysis, published by the California Office of the Small Business Advocate
Small Business Credit Survey: 2020 Report on Employer Firms, published by the Federal Reserve

Hispanic/Latino Businesses

Annual Latino-Owned Business Study 2023, published by Biz2Credit
NALCAB 2022 Annual Report, published by the National Association for Latino Community Asset Builders (includes data on grant funding for small business at front of the report)
2021 State of Latino Entrepreneurship, the seventh annual report published by the Stanford Graduate School of Business based on a survey of 15,000 businesses
Profiles on Latino Servicing CDFIs within the US, published by the National Association for Latino Community Asset Builders
Minority Business Ownership Differs by Sector, published by the United States Census Bureau

Asian American and Pacific Islander Businesses

The State of AAPI Small Business Owners, published by Hello Alice
AAPI Entrepreneurs Reflect: One Year Mark of the COVID-19 Pandemic, published by the National Coalition for Asian Pacific American Community
Small Business, Big Dreams: A Survey of Economic Development Organizations and Their Small Business Clients in Low-Income Asian American and Pacific Islander Communities, published by the National Coalition or Asian Pacific American Community Development
Minority Business Ownership Differs by Sector, published by the United States Census Bureau
The State of Diverse Businesses in California - Economic, Fiscal, and Social Impact Analysis, published by the California Office of the Small Business Advocate

Native American Businesses

We Provide Technical Assistance, Training, and Funding to Help Tribes and Tribal Members Start Their Businesses, published by the United States Department of the Interior, Indian Affairs
Our Next Step in Serving Native Communities Through the NMTC Program, published by the CDFI Fund
How SBA Helps Native American Small Business Owners Succeed, published by the U.S. Small Business Administration
Financial Inclusion and Economic Challenges in the Shadow of the Pandemic: A Conversation with Tribal Leaders, published by the United States Federal Reserve
Keys to Unlocking Business Development in Indian Country, published by the Minority Business Development Agency

Women-Owned Businesses

2022 Women & Minority Business Owner Spotlight, published by Bank of America
Pandemic Painful for Many Self-Employed Women, But Their Numbers Are Rising Again, published by the Federal Reserve Bank of Dallas
Annual Women-Owned Business Study 2023, published by Biz2Credit
Women’s Small Business Ownership and Entrepreneurship Report, published by the U.S. Senate Committee on Small Business & Entrepreneurship
The State of Women Entrepreneurs, published by Score
NWBC 2022 Annual Report, published by the National Women's Business Council
2019 State of Women-Owned Businesses Report, published by American Express

LGBTQ Businesses

2023 State of LGBTQ Entrepreneurship Report, published by StartOut
Special Report on Small Business & LGBTQ+ Inclusion, published by the United States Chamber of Commerce
The State of the LGBTQ+ Economy, published by Hello Alice
LGBTQ-Owned Small Businesses in 2021, published by the Movement Advance Project
America's LGBT Economy: The Premiere Report on the Impact of LGBT-Owned Businesses, published by the National LGBT Chamber of Commerce

Veteran-Owned Businesses

Deconstructing the Change in Veteran Business Ownership, published by the U.S. Small Business Administration Office of Advocacy
2021 National Survey of Military-Affiliated Entrepreneurs, published by Syracuse University
The Megaphone of Main Street: Unsung Entrepreneurs: Immigrants, Veterans, and Encore (55+), published by Score
2020 National Survey of Military Affiliated Entrepreneurs, published by Syracuse University Institute for Veterans and Military Families

Spread the Word About SPCP

If you have a Special Purpose Credit Program for small businesses, please share your story with ABA's Kitty Ryan.

Tell Us Your Story

*References to the OCC and Project REACh in this resource do not constitute an endorsement, recommendation, or favoring of the ABA, its members, or their findings by the OCC. Participants in Project REACh, with the support of the ABA, worked together to articulate their findings; the information in this resource does not constitute an endorsement by the OCC and does not necessarily reflect the complete positions of the institutions that REACh working group members represent.

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Ginny ONeill

Ginny O'Neill

Executive Vice President, Regulatory Compliance and Policy

Kitty Ryan

Senior Vice President, Fair and Responsible Banking

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