Hispanic Business LoansLoans for Latino Business Owners

 

The number of Hispanic-owned businesses is growing at more than twice the national rate.

A 2010 survey of business owners, conducted by the Census Bureau,  found that Hispanic-owned companies accounted for 2.3 million (or about 8.5 percent) of the 27.1 million U.S. businesses. Up from 1.6 million in 2002, Hispanic-owned businesses saw a 43.7 percent increase, while the national average leveled out at just 18.0 percent.

Hispanic business owners struggle to find financing for their small business.

However, a recent study administered by the Brigham Young University, found that Hispanics seeking small business loans were treated differently than their white counterparts, despite having identical qualifications on paper. Researchers found the Hispanic mystery shoppers were offered less information on loan terms, were asked more questions about their personal finances, and given less application help by loan officers.

Moreover, according to a study conducted by the Small Business Administration (SBA.gov), 16.5 percent of Hispanic-owned firms that applied for credit were denied, while only 10.8 percent of non-Hispanic white-owned firms reported being turned down.

Alternative lenders filling the void for Hispanic business owners.

Unlike their traditional equivalents, alternative lenders advance against the assets of a business and usually do not require perfect credit from the borrower. Additionally, the approval process takes only days, and with minimal documentation needed from the applicant, the entire process is very easy for the business owner to complete.

At Bizfi, the leading marketplace for small business funding, Hispanic business owners can pre-qualify for business funding in seconds.

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