There are more than 300,000 Hispanic-owned businesses in the U.S., and last year the Latino community recorded the greatest rate of new entrepreneurs, according to research from the Kauffman Foundation and U.S. Census Bureau.

The entrepreneurship rate was cited as part of the Kauffman Indicators of Entrepreneurship, as reported in an article in the foundation's newsletter Currents.

"Interestingly, over the Indicators' 25-year span, the Latino rate of new entrepreneurship has consistently led the U.S., and in 2021, 24.2% of the country's entrepreneurs were Latino – up from 10.0% in 1996," says economics professor Robert Fairlie lead researcher for the Kauffman Indicators of Early-Stage Entrepreneurship, in the Currents interview.

According to the latest American Community Survey, there are 347,000 Hispanic-owned businesses in the United States as of 2019, accounting for approximately 6% of all businesses in the country, says a U.S. Census Bureau press release for this year's Hispanic Heritage Month, Sept. 15-Oct. 15.

"Despite being the fastest-growing demographic among entrepreneurs in the U.S., however, Hispanic-owned businesses have problems with accessing capital and stay smaller in part because of that," points out a blog by the U.S. Chamber of Commerce.

The blog cited Stanford research indicating Hispanic businesses receive fewer funding opportunities than entrepreneurs from other ethnic groups, "meaning many of these businesses can't scale as well."

Consider the following opportunities for grants, loans, or other funding options if you are one of the hundreds of thousands of Hispanic business owners in the United States.

CDFI Fund

In your community, look for institutions or organizations certified by the U.S. Treasury's Community Development Financial Institution Fund (CDFI Fund), an agency established to help address the lack of funding for underserved communities and populations.

According to its website, the CDFI Fund assists member institutions with funding, training, research, and advocacy, allowing them to invest in their communities by constructing affordable housing, ensuring equitable neighborhood development, fostering small business growth, and providing financial counseling on topics such as credit building and homeownership.

Accion Opportunity Fund (AOF)

According to its website, the nonprofit Accion Opportunity Fund offers loans of various types, mentoring, and support networks in both English and Spanish to Hispanic and other minority-owned businesses around the United States.

Loans range from $5,000 to $100,000, with interest rates as low as 5.99 percent.

The AOF says it works differently than more traditional institutions. To the AOF, you're more than a number. When considering business viability, the organization reviews more than just the credit score. 

Furthermore, according to the website, AOF customizes loans and repayment terms. Because no two businesses are alike, they design loans that work for you, not for someone else's.

Because it does not exist to make a profit, the AOF claims it can reinvest the money it receives from loan repayments to help other local business owners.

National Community of Latino Asset Builders (NALCAB)

According to its website, the National Community of Latino Asset Builders (NALCAB), a CDFI-certified grantmaker with locations in San Antonio and Washington, D.C., primarily supports Latino low- and moderate-income communities that do not have sufficient access to financial products.

According to the organization, NALCAB offers intermediate lending to small business lenders (including CDFIs and aspirant CDFIs) to assist them in increasing their lending to Latino business owners.

It also provides ”secured and unsecured loans to affordable housing developers, including acquisition, pre-development, construction, and bridge financing."

Camino Financial 

Sean and Kenny Salas, identical twins, founded Camino Financial in 2014 to fill a need. They identified the necessasity for this when their mother, a successful entrepreneur, lost her restaurant business due to a lack of financing and resources. 

"Camino Financial’s purpose is to invest in opportunity, believe in ideas and back America’s small businesses," the website says. "By unlocking capital for these underserved micro entrepreneurs, we enable economic growth within overlooked communities."

Loans from Camino Financial range up to $400,000, with monthly interest rates from 1% to 2.5% and a 24 to 60 months repayment period. You can also access resources in both English and Spanish.

Loan criteria at Camino Financial are "more flexible than other financial institutions," the company says. "Our terms are based primarily on the cash flow of your small business, your credit score, and the planned use for the funds."

Your company must be in operation for at least nine months and generate $30,000 in yearly sales, or $2,500 per month, to be eligible for a business loan from Camino Financial.

Grants.gov

Grant.gov, the largest database of federal grants, is a useful tool for Hispanic-owned firms and other companies wishing to access and apply for federal funding possibilities.

More than 1,000 grant programs from several federal grant-making agencies are centralized by Grants.gov, which is run by the Office of Management and Budget. It also standardizes grant information, application packages, and procedures for locating and applying for federal grants.

Business owners who believe they qualify for a grant must register on the website to apply.