Newsletter Category: Morning Roundup

New U.S. Small Business Administration (SBA) data shows the number, rate and share of SBA-backed loans going to Hispanic or Latin-owned businesses have grown significantly under the Biden Administration. 

The SBA said it has backed more than 7,300 SBA loans to Latino-owned businesses so far in Fiscal Year 2023 through the 7(a) and 504 programs. Total loan dollars ($2.8 billion) and overall share of SBA-approved loans (12.2%) to Latino-owned businesses are both up more than 1.5 times since Biden took office. 

SBA Administrator Isabella Casillas Guzman joined Congressional Hispanic Caucus (CHC) Chairwoman Nanette Barragán, D-California, and other CHC members in Orlando to announce the new data. 

 “America’s more than five million Latino-owned small businesses create jobs, deliver over $800 billion to our economy every year, and add to our nation’s global competitiveness—and they could do even more if we invested in them equitably,” Guzman said. “We are seeing a small business boom and the fastest creation rate of Latino-owned businesses in over a decade.” 

 Guzman added, “Since day one of the Biden-Harris Administration, the SBA has been committed to expanding access to capital and addressing historic gaps in small business lending to this highly entrepreneurial community and this 1.5x increase in loans to Latino-owned small businesses demonstrates the positive impact of President Biden’s economic agenda. We are on the right path, and we will continue to do more to deliver the needed funding to advance opportunities for all.” 

 Under the Biden-Harris Administration, the United States has experienced a historic small business boom being led by women and people of color, with 13.6 million new business applications filed since President Joe Biden took office, a rate 65% faster than the pre-pandemic average.   

 SBA said it has taken significant steps aligned with the president’s Investing in America agenda to increase access to its core capital programs, including among Latino entrepreneurs. These include:   

• Expanding the Community Advantage Program, which supports lending to small businesses in underserved communities through mission-driven, community lenders, and making mission-oriented lending a permanent part of the SBA loan program through the Community Advantage Small Business Lending Company license; 
• Deploying the $100 million Community Navigator Pilot Program funded under President Biden’s American Rescue Plan; 

• Launching the Biden-Harris Administration’s cross-country Latino Prosperity Tour; 
• More than tripling the number of Women’s Business Centers at Hispanic-Serving Institutions; and 
• Implementing new reforms to address persistent capital access gaps. 

 “Latino-owned businesses are seeing the fastest creation rate in more than a decade due to the deliberate efforts of the Biden-Harris Administration. The U.S. Small Business Administration’s new benchmark loan numbers show a strong uptick in lending to Latino small business owners,” Barragán said, 

 While there is a long way to go to fully ensure equal opportunity for all Latino small businesses, the SBA and Biden Administration initiatives have allowed more Latino small business owners across America to access much-needed capital, Barragán said. 

“The Congressional Hispanic Caucus applauds this promising trend and remains committed to working alongside the Administration to deliver positive results for Latino small businesses,” she added.