On October 30, U.S. Small Business Administrator Isabel Guzman, President Biden’s representative for America’s more than 33 million small businesses, announced new data showing that the rate of SBA-backed loans to Latino-owned small businesses has more than doubled and surpassed $3 billion in lending.
Affordable loans backed by the federal government are a vital funding option that the SBA’s lending programs provide small businesses in a tightening credit environment. In Fiscal Year 2023, the SBA’s flagship 7(a) and 504 loan programs provided over 7,700 SBA loans to Latino-owned small businesses, twice as many as it did in Fiscal Year 2020.
Since the beginning of the Biden-Harris Administration, the total loan dollars for Latino entrepreneurs increased by almost $1.4 billion.
The SBA has increased access to its core capital programs, particularly for Latino entrepreneurs, by taking essential actions that align with the President’s Investing in America agenda. These consist of:
- Extending the Community Advantage Program, which makes mission-driven lending a permanent component of the SBA loan program through the Community Advantage
- Small Business Lending Company license and provides lending to small businesses in underserved communities through mission-driven community lenders
- Using the $100 million Community Navigator Pilot Program made possible by President Biden’s American Rescue Plan, initiating the Biden-Harris Administration’s nationwide Latino Prosperity Tour, increasing the number of Women’s Business
- Centers at Hispanic-Serving Institutions by more than three times, and putting new reforms into place to address enduring gaps in capital access.