Administrator Isabella Casillas Guzmán, director of the U.S. Small Business Administration (SBA), recently presented new data showing the number, rate and proportion of loans backed by the SBA, showing that sales to Hispanic-owned businesses have increased significantly.

Casillas Guzmán said in a press release:

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.

Support for Latino Businesses

According to information shared by the SBA, under the Biden Administration the U.S. has experienced a historic small business boom led by women and people of color.

Since his possession, 13.6 million new commercial applications have been filed, a rate 65% faster than the pre-pandemic average.

Likewise, this small business boom has seen the fastest rate of creation of Hispanic-owned businesses in more than a decade—more than 20% faster than pre-pandemic levels.

“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,” highlighted Casillas Guzmán.

Growing Increase

According to SBA data, the agency has approved nearly 7,300 loans to Latino-owned businesses so far in fiscal year 2023 through the 7(a) and 504 programs.

“We are seeing a small business boom and the fastest creation rate of Latino-owned businesses in over a decade. We are on the right path and we will continue to do more to deliver the needed funding to advance opportunities for all,” added Casillas Guzmán.

There are 5 million Hispanic-owned small businesses that help power America's economy! Learn more about the economic impact of Latino and Latina entrepreneurs and celebrate #HispanicHeritageMonth: https://t.co/axm7bOmC0N https://t.co/PxSTDNLshh

— SBA (@SBAgov) September 26, 2023

Total dollars in loans ($2.8 billion) and the overall share of loans approved by the SBA (12.2%) to Latino-owned businesses have increased more than 1.5 times since the start of the Biden administration.

Key Measures

These are some of the measures the SBA has taken to increase access to its capital programs among Latino entrepreneurs:

• 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
• Implementing new reforms to address persistent capital access gaps

“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,” pointed out Rep. Nanette Barragán, chair of the Congressional Hispanic Caucus.

SBA has backed more than 4,300 loans to Black-owned businesses so far in FY 23 through the 7(a) & 504 programs. Total loan dollars ($1.3 billion) & overall share of SBA-approved loans (7.5%) to Black-Owned businesses have also more than doubled since 2020. https://t.co/QFaTq5M14E https://t.co/uAMNYL3u59 pic.twitter.com/iSej3zJD7Z

— SBA (@SBAgov) September 22, 2023

Support for Black Businesses

The SBA also reported that it has approved more than 4,300 loans to Black-owned businesses so far in FY23 through the 7(a) and 504 programs.

Total loans ($1.3 billion) and the overall share of SBA-approved loans (7.5%) to Black-owned businesses have also more than doubled since 2020.

“Today’s benchmark loan numbers show our work under President Biden’s Investing in America agenda making inroads to support more of America’s Black small business owners,” stressed Casillas Guzmán.

About Loans

The SBA 7(a) loan is the SBA's primary business loan program. Provides guarantees to lenders supporting small business financing for working capital and a variety of other uses, up to $5 million.

The SBA 504 loan, meanwhile, provides long-term fixed-rate financing of up to $5.5 million for large fixed asset purchases by small businesses.

The SBA guarantee allows lenders to offer credit to businesses that would not otherwise qualify. SBA lenders must comply with interest rate caps and fee restrictions.

There are 5 million Latino-owned businesses in the United States that contribute more than $800B a year to the American economy. Learn about resources to help small businesses in every community start and grow: https://t.co/yR58RgV7jG #HispanicHeritageMonth #USHCCOrlando23 https://t.co/3sopOAlmHz

— SBA (@SBAgov) September 25, 2023

Complete SBA loan data for FY23 will be available after the end of the fiscal year.

“Economic mobility and success are vital to achieving the American dream, but for far too long small businesses owned by Black Americans have faced roadblock after roadblock on that path,” said Congressman Steven Horsford (NV-04), chair of the Congressional Black Caucus.