Online Small Business Financing Platform Reveals Record Year for Latino-Owned Businesses
Biz2Credit is an online small business financing platform that uses technology to streamline the funding process. It was founded in 2007 by Rohit Arora. The platform handles more than 5,000 new loan applications each month and was named one of Crain’s “Fast 50” New York companies in 2014. One of the rankings it produces on a regular basis is the Biz2Credit’s Latino Lending Report.
This year Biz2Credit published its annual study, the Biz2Credit Study of Latino-Owned Businesses, with a whole host of promising numbers. For starters, the average revenue of Latino-owned businesses improved 46.5%. Last year, it increased from $327,189 to $479,413. The number of credit applications has also experienced a spike of 23% over the past 12 months.
The boom in Latino-owned businesses is established news by now. Since 2012, they have grown 31.6%. Revenue has jumped 23% from 2017-2018. Latino businesses are thriving and expanding. They are recognized as major contributors to the overall strength of the U.S. economy.
Another key finding of the report is that accommodation and food services represent the largest category of Latino-owned companies. Runners-up include construction, retail trade and transportation and warehousing. The average annual revenue of these businesses is gaining on Non-Latino-owned businesses. In 2018-2019, the average annual revenue of Non-Latino-owned businesses was reported as $590,110, while the same figure for Latino-owned businesses was only $25,067 lower, at $479, 413. Based on this report, credit and obtaining financing remain concerns for Latino businesses.
The Small Business Administration (SBA) continues to connect entrepreneurs with lenders and funding to help them plan, start and grow their business. Meanwhile, Latino companies continue to seek funding for long-term needs, such as commercial real estate and equipment purchases, as well as shorter, cash flow-related issues. Lately, many Latino businesses have been applying for SBA microloans of up to $50,000. These are offered by regional and community banks with government guarantees, which encourage lending to companies that normally do not qualify for bank loans. Companies located in under-served areas that need larger amounts can apply for up to $250,000 in SBA Community Advantage Loans.
Keeping up with small business news is an essential part of what we do here at the Law Office of H. Benjamin Sharlin LLC, www.sharlinlaw.com. Providing this information to current and future clients is even more crucial. In order to be partners in the Latino-owned business boom, owners and small-business lawyers need to remain fully informed of all opportunities for growth.
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