How Biden’s administration Can Help Latino Small Business Community
The Latino small business community was hit exceptionally hard by the financial impact of the pandemic. According to the Stanford Latino Entrepreneurship Initiative, 86% of Latino business owners felt immediate negative effects from COVID.
Recovery was not easy as many of them struggled with less cash on hand. They were also only half as likely as their white counterparts to receive PPP Loans that would provide financial assistance.
The Biden Administration’s new PPP Loan initiatives offers relief addressing the needs of Latino business owners in two ways.
- A two-week exclusive application period was made available for small business owners with fewer than 20 employees. This went into effect on February 24.
- Loans were made available to non-citizen business owners including green card holders.
Loans also could not be denied to those who are delinquent on student loans.
Biden’s Policies and the Latino Community
The PPP Loan initiatives are providing Latino business owners with the financial assistance they need. Here are other pillars that will improve their financial situations.
- A Focus on Reducing Social and Economic Inequality: Biden is appointing an advisor within the White House immediate work circle increasing the focus on minority income and providing Latinos with opportunities for better living, working and economic conditions.
- A Rescue Plan Put in Place: The rescue plan will prevent small Latino and other minority businesses from closing due to the pandemic.
- The Development of a Strategy to Support Latino and Minority Businesses: This initiative will allow people in disadvantaged areas to start businesses that create more jobs in the community. It will be made possible through an increase in state, local and tribal loan budget to $100,000 million which will provide an expansion of access to low interest rate financing.
- Additional Help and Advice Services for Business Owners: Latino business owners will be offered guidance on how to access the PPP Loan.
- Increased Financing for Local and State Initiatives: More than $50,000 million will be dedicated to local and state initiatives through public-private venture capital funds that support businesses through investment.
The Biden Administration’s efforts are aiming to develop a stronger economy through the recovery and growth of small, minority owned businesses. Prior to the COVID crisis, Latino business owners were showing impressive forward movement through increases in funding, improved credit ratings and boosts in revenue. This can be further leveraged through vigorous reemergence efforts.
However, the shape of economic recovery is dependent on a variety of factors including public policies, government intervention and societal issues. It also rests on how well Latino owned businesses can adapt to shifting patterns in supply and demand. Those that are prepared to evolve with changing times will be better equipped to conform and thrive in the climate of the world’s new normal.