Why providing more credit to Latino-owned businesses is vital for the future of the US economy

0

LOS ANGELES, February 10, 2022 /PRNewswire/ — Latino-owned businesses are the fastest growing segment of new businesses in United Statesaccording to zinc Co-founder Francois de Alba.

“Ensuring their continued success with access to credit to grow their businesses should be everyone’s priority, as they have become a major driver of the economy. They now make up 24% of all new businesses, compared to just 10% he barely ten years ago.” says DeAlba.

Latinos are also the fastest growing segment of the American population and the best way for them to achieve wealth is through entrepreneurship. This is why they are also twice as likely as the general population to start a business.

De Alba and his business partner Salvador Gomezwho is also co-founder of zinc, help these entrepreneurs, who would normally not have access to credit, to receive business loans so that they can expand or stay in business to provide employment opportunities while promoting economic growth.

Yet access to working capital has always been a challenge for many despite a strong entrepreneurial spirit within the community as few financial companies are willing to offer credit.

“Instead, these entrepreneurs are forced to rely on personal savings, friends or family to start their business and for financial support when working capital is needed,” Gomez said.

According to a 2021 survey of Stanford Universitywhen applying for government Payroll Protection Program (PPP) funding to help pay employee wages during COVID, Latino-owned businesses were approved at half the rate of white-owned businesses.

Nowadays, zinc provided more than $300 million in more than 12,000 US small business loans, which would not normally qualify for a bank loan. Many of these small business owners are Latinos.

“These loans help businesses stay open so they can pay salaries, suppliers and drive economic growth. If this capital did not exist, it is likely that many of these entrepreneurs would go bankrupt, which would weigh more on the economy,” Gomez said.

If these businesses fail, the business owner is out of work, along with all the employees. Worse, it hurts everyone in the supply chain and the local economy. This has a multiplier effect because the company’s suppliers have just lost a customer, and they will buy less from their suppliers and so on.

Both De Alba and Gomez are Latino entrepreneurs with unique financial skills, having worked in the private equity industry for many years. In 2019, they acquired Merchant Capital Source and turned it into zinc.

Their goal is to help small businesses find capital, especially Latino entrepreneurs. Because De Alba and Gomez share the same culture, they understand the challenges these people face and can instantly connect with them to deliver real solutions to grow their businesses.

Despite Latino entrepreneurs’ continued contributions to the US economy, access to capital has been an ongoing issue for them, stalling their businesses and the county’s overall economic growth.

“Our mission at zinc is to change and fix this so that Latin American businesses can thrive and contribute to the growth of the American economy for the long-term benefit of all,” De Alba said.

For more information or to schedule an interview, contact Francois de Alba at (866) 969-7878 or [email protected].

Contact:
Francois de Alba
zinc
https://zinchfin.com/
Los Angeles, CA
Phone: (866) 969-7878
Fax: (949) 209-2636
E-mail: [email protected]

SOURCE Zinc

Share.

About Author

Comments are closed.