According to a report published by The Hill, there has been a significant expansion of lending to Latino-owned businesses in the United States during the Biden administration. Latino companies faced challenges in obtaining credit from traditional lenders, and the U.S. Small Business Administration (SBA), a government agency, played a crucial role in supporting these companies.

According to official data, the SBA supported 7,746 loans to Latino businesses totaling more than $3 billion in fiscal year 2023. This represents a significant increase compared to the previous five fiscal years, when an average of just over 5,000 loans to Latino companies were granted. In 2020, there was a dip due to the pandemic, with only 3,877 loans supported by the SBA.

The publication also points out that while the SBA supported a record 9,951 loans to Latino businesses in 2006, the total amount of money distributed that year was much smaller, about $1.3 billion. However, under the Biden administration, dollar amounts for loans to Latino companies have increased significantly, reaching $3 billion in fiscal year 2023.

SBA Administrator Isabella Casillas Guzmán highlights the importance of Latino small businesses in the U.S. economy, creating jobs and contributing more than $800 billion annually. She notes that Latino companies are experiencing remarkable growth and the fastest rate of business creation in more than a decade.

However, Latino businesses face challenges in obtaining loans from traditional financial institutions. Even when applying for assistance at rates similar to those of white business owners, Latinos are less likely to receive the necessary funding. This is supported by data showing that 31% of Hispanic- and Asian-owned businesses had their credit needs met, compared to 50% of white-owned businesses.

There is still a disparity between the growth of Latino companies and the lack of lending, which has led to a significant increase in the SBA's share of financing these companies. According to the publication, the agency reports a 47% growth in Community Advantage (CA) loans going to Latino companies, resulting in a higher share of those loans going to Latino companies. Now, Latino companies account for 12% of the total SBA-guaranteed loan portfolio.