The proportion of credit applications from larger Latino-Owned Businesses (LOBs) increased relative to smaller businesses.
Credit applications from highest-revenue businesses (>$250K) is up from 22% in Q4 to 27% in Q1
Credit applications from mid-tier businesses (annual revenue $100K-$249K) shrank considerably from 32.2% to 26.9% quarter over quarter
In Q1, LOBs reported an average annual revenue of $258K. Even if they retain or improve this level of income, it is less than half the general market average of $600K annually. This is not adequate to provide a secure income, much less build a pathway to long-term generational wealth.
80% of Latino business owners say that their business will be the same or better than before the pandemic
45% of LOBs have gross revenues of less than $9K per month
LOBs applied and received funding in significantly lower amounts because they could not, or believed they could not complete the application process.
12% of LOBs received COVID relief from the government
32% of LOBs did not receive relief because they didn’t have resources to apply or were disqualified for technical reasons
The ability of LOBs to remain open and recover depends on the speed of the recovery and the economic support available.
This edition of the survey marks exactly one year since Camino Financial released its first Quarterly issue. We take this opportunity to review the year and highlight the impact of COVID on access to credit by Latino-Owned Businesses (LOBs).