According to a recent report released from the U.S. Hispanic Chamber of Commerce (USHCC), “nearly 4.4 million Latino-owned businesses in the United States contribute more than $700 billion to the American economy” each year. The number has seen huge growth as ” Latino-owned companies have grown 31.6 percent since 2012, more than double the growth rate of all businesses across America (13.8 percent)”
The U.S Census also revealed good news for the Latino population as the current number of 55 million is expected to reach 120 million by 2060 and account for 28.6% of the American population. Currently Latinos make up 17%.
When focusing on businesses, the top industries Latinos appear include the following; “Accommodation and Food Services 19.6 percent, Services (except Public Administration) 16.3 percent, Construction 14.4 percent, Retail Trade 13.3 percent, Transportation and Warehousing 6.9 percent.”
According to Biz2Credit, Latinos have seen a rise in average annual revenue from$258,702 in 2017 to $327,189 in 2018 with an increasing average credit score growing 2 points from 592 in 2017 to 594. “The average credit score for Latino entrepreneurs is still below 600. This is problematic because 600 is a benchmark that many banks use when considering whether or not to approve a loan request.”
In addition, business “loan applications requests on Biz2Credit’s online lending platform in 2017-18 by Latinos came predominantly from California, Texas, New Jersey, Florida, and New York. These five states comprised 60 percent of the applications for loans for Latinos over the past 12 months. California (22 percent) and Texas (20 percent) combined for more than 40 percent of the Latino small business loan requests.”