Q2 2020

Latino-Owned Businesses (LOBs) are in a credit crunch caused by a disproportionate lack of access to government relief funds and other lines of credit, which will deepen and prolong the crisis for them. Given the scale of this community, this has implications for the recovery of the U.S. economy as a whole.

Credit Crisis of Latinos

Capital critically needed for survival and recovery

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80% experienced a decline in sales

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70% had to close at some point during the first half of the year

Credit Crunch: Capital even more difficult for Latino SMBs to obtain

LOBs experience significant obstacles in applying for government business relief

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71% of Latinos did not apply for government business relief

OF THOSE THAT DID NOT APPLY:

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69% did not apply, required technical assistance or believed they would not qualify

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19% required technical or other assistance in completing the application process

Latino-owned businesses discouraged from applying for Credit

Credit bias towards risk borrowers, foreshadowing a credit crunch with smaller and earlier stage business

37%

Latino applicants revenue increased by 37% in Q2 2020 vs PQ

32.6%

Business with less than 2 years of operation saw a revenue decrease of 32.6% in Q2 2020 vs PQ

Resilience during unprecedented times

The road to recovery is long but microenterprises are adjusting

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67% of LOBs are open for business

The remaining 33% are expected to re-open

View other quarters

Q3 2020

Summary:
Latino entrepreneurs launched new businesses at an increasingly rapid rate in 2019, despite lack of credit history.

Q1 2020

Summary:
Immigrants and undocumented business owners have been disproportionately impacted by the lack of access to credit and access to stimulus programs in the face of the COVID-19 crisis.