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The $700 billion Hispanic business market in the U.S. is now at the tipping point

The $700 billion Hispanic business market in the U.S. is now at the tipping point

  • As gridlock over another round of stimulus for small business in Washington continues, 5 million Latinos are at risk of bankruptcy, a new study reveals on Sunday.
  • Pre-pandemic they were the fastest-growing cohort on Main Street and contributed 4% to U.S. GDP.
  • Latino companies that applied for the Paycheck Protection Program have seen a 21% drop in revenue since February while their costs for PPE and other safety measures rise.



a group of people walking on a city street: Small businesses line Bagley Avenue in the Mexicantown neighborhood of Southwest Detroit, Michigan.


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Small businesses line Bagley Avenue in the Mexicantown neighborhood of Southwest Detroit, Michigan.

As gridlock over another round of stimulus for small business in Washington continues, 5 million Latinos are at risk of bankruptcy, a new study reveals on Monday. Pre-pandemic they were the fastest-growing cohort on Main Street and contributed 4% to U.S. GDP. Their demise portends a troubling trend that can upend communities across America.

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Statistics reveal the story. Latino companies that applied for the Paycheck Protection Program saw a 21% drop in revenue from February through September while their costs for PPE and other safety measures rose and continue to remain high. Additionally, they retrofitted their businesses to deal with the pandemic, which resulted in a huge amount of expenditure that exceeded their revenue in the summer. They spent a lot to stay open and ended with a negative 11% margin.They are now cash flow negative and are on the brink of going out of business, the annual Latino Small Business Biz2Credit survey reveals.

Times were particularly hard for companies in the Northeast and Midwest, but as the coronavirus spread across the country, other areas have suffered, as well. The Biz2Credit research found that non-Latino businesses also have struggled, although their revenue remains slightly above break even.

For the study, Biz2Credit analyzed the financial performance of 35,000 companies, including 3,000 Hispanic-owned

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