The financial services industry continues to undergo substantial changes in structure and
practice. Bank mergers, the convergence of bank and non-bank activity, the use of credit scoring,
and the increasing geographic scale of small business lending markets are all likely to have
significant impacts on credit delivery to small businesses. This paper assesses the extent to which
the evolving structure of the small business finance system affects both the nature and availability of
capital in inner cities and modest income suburbs. The author discusses the implications recent
trends have for both financial services regulation and community economic development policy, and
offers recommendations for future policies, programs and initiatives in these areas.