Crain’s: We’re failing small-business owners on access to capital
July 20, 2025
In this piece, Mona co-founder Andrew Leon Hanna breaks down the biggest barriers to capital access – and opportunities – for small business entrepreneurs across the country.
Read the full story here.
Small businesses generate more than half of net new jobs in the U.S., and – beyond their economic impact – foster community, hope, and resilience in neighborhoods across the country. During the pandemic, natural disasters, and other times of crisis, it is small business owners who keep their doors open, offer support, and show up for those in need. It’s no surprise that small businesses have by far the highest approval rating of any institution in America – with 86 percent of adults saying small businesses have a positive effect on the country.
Yet, despite their impact, we’re failing small business entrepreneurs where it matters most: helping them access the funding they need to launch and scale.
In a survey conducted by our team at Mona, entrepreneurs overwhelmingly identified access to capital as their biggest pain point. Indeed, 64 percent of entrepreneurs who have sought funding have never secured a loan or grant. Millions more don’t apply – often because they assume they will be turned down. The problem is especially pronounced for historically disadvantaged groups, who face higher rejection rates from banks and have justifiable greater distrust of the financial system. And the situation is made more urgent by the fact that most small businesses have less than four months of cash on hand, making timely access to capital critical.
While more funding needs to be made available for underserved entrepreneurs, a surprising reality is that many entrepreneurs – even with lower credit scores and limited revenue – are already eligible for affordable capital. Today, billions of dollars in loans and grants exist through mission-driven lenders, like community development financial institutions (CDFIs), nonprofit lenders, and philanthropic and government-backed programs.
Ultimately, then, the primary challenge we see every day is one of navigation.
Four key barriers stand in the way of access: a lack of awareness about available funding options, a lack of trust in financial institutions, complexity in funding application processes, and a lack of guidance – including technical and language support – as entrepreneurs proceed with applications.
Simply put, knowing where to look and how to apply is often half the battle. Entrepreneurs need better tools and trusted support to find and secure the right capital.
Fortunately, affordable options exist. Kiva, a crowdlending nonprofit, offers zero-interest microloans for entrepreneurs with low or limited credit. CDFIs like Greenwood Archer Capital in Chicago, Accion Opportunity Fund, Lendistry, and DreamSpring provide flexible capital. Meanwhile, local resources like Small Business Development Centers (SBDCs) offer free support in applying for funding. And as entrepreneurs repay initial loans and build credit, they can eventually qualify for larger loans and better terms from traditional lenders.
Importantly, small amounts of funding can be transformative in the hands of entrepreneurs. Lisa Marsh is the founder of Ms. P’s Gluten Free in the South Side. We connected her to a $10,500 loan that allowed her to invest in ingredients and packaging to expand her healthy snacks’ reach to new retail stores. For Martha and Leecox Omollo, the founders of Kikwetu Coffee Company, a $12,000 loan helped them grow their ecommerce sales as they bring Kenyan-born coffee to Woodlawn and beyond.
These Chicago entrepreneurs’ stories are two of millions across America. And they demonstrate that when we unlock access to capital for small businesses, we unlock opportunity, mutual understanding, and hope throughout our communities.
