In Indiana, the Great Lakes Region and nationwide, the small business startup boom is largely owners from traditionally underserved communities – and the Latino community helps lead the way. In the last three years, America has experienced the fastest creation rate of Latino-owned small businesses in three decades.
From Sept. 15 to Oct. 15 each year, National Hispanic Heritage Month acknowledges the contributions, diverse cultures and their historical impact in America, like the current record-high Latino entrepreneurship. Under landmark bi-partisan legislation passed under the Biden-Harris Administration’s Investing in America economic agenda, Hispanic small business owners are at the forefront of strengthening America’s economy.
They’re gaining contracts, increasing revenues and creating good-paying jobs from infrastructure projects such as high-speed internet installation, lead pipe abatement, EV parts manufacturing and maintenance, climate-resilient roads and bridges, and energy efficient homes and buildings. Customer growth and revenue expansion bodes especially well for small firms who are certified through SBA’s contracting assistance programs such as HubZone, women-owned small business, service-disabled veteran-owned, or the 8(a) Business Development program.
Job creation by Hispanic small businesses contributes to closing the wealth gap, wherein Hispanic and Latino households only own about 15 to 20 percent of the net wealth held by the average White household. Equity has been a priority from day one of the Biden-Harris Administration and the SBA. Being in the field, I’m acutely aware that finding business funding and trusted advisers that impart the knowledge capital needed to manage funding and run a business can be daunting. And for too long, systemic obstacles have prevented most Latino entrepreneurs from accessing the money, tools and resources for business success.
That’s why the SBA works hard to deliver affordable capital, accessible contracts and unbiased counseling to Latino entrepreneurs. Under SBA Administrator Isabel Casillas Guzman’s leadership, the U.S. Small Business Administration (SBA) has made extraordinary progress knocking down barriers. Under Administrator Guzman’s leadership, the Latino share of the SBA’s lending portfolio has grown 4 percentage points in the last three years, from 7.8% to 12.2%. In fiscal year 2023, the agency funded a record-shattering $3 billion to Latino-owned small businesses. In Indiana and the five states in the SBA’s Great Lakes Region, over the last three years we’ve increased funding by nearly a third to Latinos since fiscal year 2021.
American small business ownership is at a green zeitgeist with the Investing in America economic agenda. It’s critical to advance both business success and sustainability while addressing climate change to ensure that businesses, families and communities have clean air, water, and affordable and safe transportation. All this enriches our daily lives in business, work, education and recreational activities, while creating energy savings and lowering the costs of doing business and advancing financially stronger and healthier communities.
During Hispanic Heritage Month, let’s celebrate the success of Hispanic-owned small businesses and together ensure they receive ongoing support to thrive in America, so we all continue to benefit.
Created in 1953, the SBA is the only cabinet-level federal agency fully dedicated to small business and provides counseling, capital and contracting expertise. Connect with SBA staff and resource partners across Indiana at www.sba.gov/in and follow us on LinkedIn.
