Latino small business owners are increasing in number. But the Latino business community still lacks access to that -oh-so-important resource: capital.
Latinos are one of the fastest-growing segments of small business owners in the United States. Estimates suggest by the end of the decade there could be as many as 12 million small businesses owned by Latinos.
A recent report from Biz2Credit, a website connecting small businesses with lenders, suggests assistance is needed to give Latino and other small business owners greater access to the capital they need.
The “Biz2Credit Small Business Lending Index” from March 2013 shows loan approval rates increased for the fourth consecutive month at small banks. Those rates reached an all-time index high of 50.8%. Rohit Arora, co-founder of Biz2Credit.com, says the numbers suggest the recovery is starting to bring relief to some small business owners.
But others continue to struggle. Among those are groups that have traditionally lacked access to capital, including Latino and women business owners.
Hector Barreto recently told Fox Business many factors contribute to this lack of access to small business loan capital among Latinos. Barreto is the former head of the U.S. Small Business Administration. He now leads The Latino Coalition, a national organization that represents Latino interests. The Latino Coalition is engaged in advocacy on behalf of Latinos, including Latino small business owners. The Latino Coalition also provides resources for Latino business owners.
Barreto used the interview to announce a partnership with Biz2Credit to help more Latino businesses obtain the financing and credit they need.
Barreto said recent data shows there are currently 3 million Latino small business owners in the U.S. He says businesses owned by these Latino entrepreneurs generate about $500 billion in sales annually.