National Hispanic Heritage Month, observed from Sept. 15 to Oct. 15, is a time when Americans celebrate the rich contributions, diverse cultures and deep histories of the Latino community within the United States. It serves as a reminder that Hispanic heritage and traditions are integral to our national identity, showcasing the tapestry of diverse traditions and stories that make up America. This celebration underscores the strength of our country’s diversity.
Under the leadership of administrator Isabella Casillas Guzman, the U.S. Small Business Administration exerts a strong commitment to supporting Hispanic communities. The surge in Hispanic-owned businesses, contributing $800 billion annually to the national economy, highlights the growing entrepreneurial spirit within this community. Over the past decade, Latino entrepreneurs have seen remarkable growth rates, outpacing non-Latino businesses by tenfold. In the southeast alone, Hispanics own over 1 million businesses, making significant contributions to local economies.
President Joe Biden and Administrator Guzman have prioritized the strengthening of Hispanic-owned small businesses. In the last 33 months, the rate of Hispanic-owned business creation has been the fastest in more than a decade, surpassing pre-pandemic levels by more than 20%. The president’s goal to increase federal contracting dollars to small, disadvantaged businesses by 50% by 2025 equates to an additional $100 billion for minority-owned and underserved businesses, fostering more opportunities for entrepreneurial dreams to flourish.
Lending to Hispanic small businesses is also on the rise. In the 2023 fiscal year, lenders have approved more than $743 million in SBA backed loans in the southeast region, assisting 1,787 small businesses and saving or creating nearly 15,000 jobs. This is a 46% increase in the number of loans afforded to Hispanic businesses compared to last year.
SBA’s Equity Goals For Direct Assistance
This administration has also initiated an ambitious government-wide interagency plan aimed at advancing equity, justice and opportunities for Latino communities. The Small Business Administration has established four equity goals to provide direct assistance:
Improve access to capital for underserved communities, including Hispanic small business owners. SBA is investing in additional technology to match underserved borrowers with Community Financial Institutions, including Community Development Financial Institutions. For borrowers, application requirements will be simplified, data will integrate automatically, a high-quality customer service support system will be available, and the process will be mobile-friendly.
Expand access to federal procurement and contracting opportunities. SBA will enroll more small, disadvantaged businesses into its business development and contracting programs including the 8(a) Business Development program, HUBZone program and Economically Disadvantaged Women-Owned Small Business certification program. The goal is to strengthen those businesses’ capabilities to compete and perform on contracts.
Provide support and expanded access to disaster assistance. SBA will work with its field and program offices to develop a systematic and formal process with its resource partners to assist minority-owned businesses with disaster loans including application completion, reconsiderations, credit repair, and managerial and technical services.
Increase access to business counseling, training and services. SBA will investigate innovative approaches for reaching Hispanic and immigrant clients through its Community Navigators Pilot Program, Women’s Business Centers, Small Business Development Centers, SCORE and Procurement Technical Assistance Centers.
This equity plan complements legislative successes over the last three years such as the American Rescue Plan, the bipartisan Infrastructure Investment and Jobs Act and the Inflation Reduction Act of 2022, which aim to reduce costs, level the playing field and create opportunities for small businesses, particularly those that minorities, women and veterans own.
Additionally, we have formed strategic alliances with three organizations in the region that have strong ties to Hispanic communities: Prospera, an economic development, nonprofit organization that serves Florida and the Carolinas, specializing in providing bilingual assistance to Hispanic entrepreneurs trying to establish or expand their business; the Hispanic Interest Coalition of Alabama, a community development and advocacy organization that champions economic equality, civic engagement and social justice for Latino families in Alabama; and the Hispanic Business Council, a Florida-based, nonprofit organization with the mission of helping all members of the local small business community to grow, network, learn, support, engage and advocate for one another and the business community at large.
During National Hispanic Heritage Month, we continue to honor Hispanic culture and entrepreneurship, paying tribute to generations of Hispanic leaders who have contributed to our nation’s growth and continue to advocate for equality and justice. It is also an opportunity to invest in the next generation of Hispanic entrepreneurs who hold the future of our nation in their hands.
Our SBA district offices stand ready to assist residents locally. To find a nearby district office, please visit sba.gov/local-assistance. To stay up-to-date on the latest news in the region, follow the SBA on Twitter at @SBASoutheast and LinkedIn at SBA Southeast Region.
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