This report is the third in a series of reports based on the 2016 Small Business Credit Survey (SBCS), a national collaboration of the 12 Reserve Banks of the Federal Reserve System, offering unique insight into important, often underserved, segments of the small business population. Results show that minority-owned firms are discouraged (i.e., they did not apply for new funding because they did not think they would be approved) at much higher rates than non-minority-owned firms. In addition, while not controlling for all firm characteristics, the reported credit outcomes of survey respondents differ by race and credit risk.