In Sept. 2020, Camino Financial released their quarterly report pertaining to Latino-owned businesses and their successes – the findings are inspiring.
COVID-19 hit the world hard – impacting public health, socialization, and perhaps most notably, the economy. Although every community was affected in some way, the Latino community found itself struggling to make ends meet. In fact, over half of all Hispanic workers lost their jobs or had their pay decreased as a direct result of the pandemic (Pew Research Center, 2020).
To get more insight on this situation, Camino Financial took a deep dive into Latino economics by conducting their quarterly survey. As they explain, “The report is derived from 32,940 business loan applications to Camino Financial, a platform that uses proprietary artificial intelligence to aggregate data that drastically reduce financing costs for Latino small businesses with limited or no credit history” (Camino, 2020).
Although many of their findings were disheartening truths about the effects of COVID-19, there were also bouts of optimism. Here are some of Camino Financial’s findings:
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Latino-owned businesses are resilient
- The pandemic forced the majority of Latino-owned businesses to close temporarily in 2020, and 46% saw revenue declines above 30%. Despite that, 78% have reopened and 44% have returned to pre-COVID revenue.
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Latino-owned businesses are optimistic
- 70% of Latino-owned businesses believe their business will be as good as or better than pre-pandemic levels, yet up to 10% believe they will have to close their business permanently.
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Full recovery will not be quick
- Limited access to capital remains the single largest impediment to unlocking Latino-owned business growth potential. 60% have less than four months of operating capital, including 21% with less than three weeks. Despite that, Latino-owned businesses are discouraged from seeking additional funding or relief, with only 46% even applying.
To view the full report, click here
If you have questions or would like to learn more, please contact Sarah Brashear at [email protected] or Elianet Romero at [email protected].
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