In recognition of Hispanic Heritage Month, the U.S. Department of the Treasury released a report card showing that Latino business ownership and revenues in the U.S. are up and detailing how federal investments – including those from President Joe Biden’s American Rescue Plan – are growing and sustaining Latino-owned businesses.
Latino entrepreneurs made up almost a quarter of all new business owners in 2021, according to the press release. Moreover, Latino business owners witnessed a 25% median growth rate in revenues throughout the pandemic and recovery phase.
A separate study by the Stanford Latino Entrepreneurship Initiative (SLEI) mentioned in the release underscores the significant role Latinos play in the U.S. economy. Latinos, representing 19% of the total population, own around 5 million businesses, generating over $800 billion in annual revenue.
The pandemic undeniably affected the Latino community severely, with higher unemployment rates and exposure risks. Yet, as the press release points out, the recovery strategies set forth by the Biden-Harris administration seem to have led to one of the most inclusive economic revivals in recent history.
Post-2020 business application data, as the release suggests, showcases an encouraging trend. There was a 50% increase in applications between 2021-2023 when compared to 2018-2019. Regions with a higher percentage of Latino and Black residents witnessed even greater spikes.
The period from 2019 to 2023 marked a significant phase for Latino entrepreneurs. As per the release, there was a notable 26% increase in self-employed Latino workers. Comparatively, after the Great Recession, the number of self-employed Latino workers saw a dip.
Federal resources, as indicated in the press release, played a crucial role in supporting Latino business growth. The Treasury Department, in particular, implemented key programs like the State Small Business Credit Initiative (SSBCI) and the Emergency Capital Investment Program (ECIP), targeted at empowering small businesses, especially within underserved communities.
Tangible results from these initiatives are evident. The Latino Connection, a Harrisburg-based consultancy, successfully secured a substantial SSBCI loan, enabling its expansion. Similarly, Peruvian Brothers in Washington, D.C., leveraged funds from the city's Bridge Fund 2.0 to diversify and expand its culinary operations. In Philadelphia, the Asian Financial Corporation’s Small Business Booster Loans (SSBL) program has provided critical financial support to various Latino businesses.