Credit Crisis of Latinos
Capital critically needed for survival and recovery
80% experienced a decline in sales
70% had to close at some point during the first half of the year
Credit Crunch: Capital even more difficult for Latino SMBs to obtain
LOBs experience significant obstacles in applying for government business relief
71% of Latinos did not apply for government business relief
OF THOSE THAT DID NOT APPLY:
69% did not apply, required technical assistance or believed they would not qualify
19% required technical or other assistance in completing the application process
Latino-owned businesses discouraged from applying for Credit
Credit bias towards risk borrowers, foreshadowing a credit crunch with smaller and earlier stage business
37%
Latino applicants revenue increased by 37% in Q2 2020 vs PQ
32.6%
Business with less than 2 years of operation saw a revenue decrease of 32.6% in Q2 2020 vs PQ
Resilience during unprecedented times
The road to recovery is long but microenterprises are adjusting
67% of LOBs are open for business
The remaining 33% are expected to re-open
