Why Offering More Credit to Latino-owned Businesses is Vital to the Future of the U.S. Economy

LOS ANGELES, Feb. 10, 2022 /PRNewswire/ -- Latino-owned businesses are the fastest-growing segment of new businesses being created in the United States, according to Zinch Co-Founder Francisco De Alba.

"Ensuring their continued success with access to credit to grow their businesses should be everyone's priority because they have become a major driving force in the economy. They now represent 24 percent of all new businesses, compared to only 10 percent just a decade ago," said De Alba.

Latinos are also the fastest-growing segment of the U.S. population and the best way for them to reach wealth is through entrepreneurship. That's why they're also twice as likely as the general population to start a business.

De Alba and his business partner Salvador Gomez, who is also a Co-Founder at Zinch, are helping these entrepreneurs, who wouldn't normally have access to credit, receive business loans so they can expand or stay in business to supply job opportunities while providing economic growth.

Yet, access to working capital has always been a challenge for many of them despite a robust enterprising spirit within the community because few financial companies are willing to offer credit.

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

According to a 2021 survey from Stanford University, when requesting funding from the government Payroll Protection Program (PPP) to help pay employee salaries during COVID, Latino-owned businesses were approved at half the rate of white-owned businesses.

To date, Zinch has provided more than $300 million in over 12,000 loans to U.S. small businesses, which wouldn't 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 stimulate economic growth. If this capital didn't exist, it's likely that many of these entrepreneurs would go out of business putting another burden on the economy," said Gomez.

If these businesses fail, the business owner is unemployed and so are all the employees. Even worse it hurts everyone down the supply chain and the local economy. It has a multiplier effect because the business's suppliers just lost a customer, and they will buy less from their suppliers and so on.

De Alba and Gomez are both Latino entrepreneurs with unique financial skillsets, having worked in the private equity industry for many years. In 2019, they acquired Merchant Capital Source and transformed it into Zinch.

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

Despite the continued contributions of Latino entrepreneurs to the U.S. economy, access to capital has been an ongoing problem for them, stalling their businesses and the county's overall economic growth.

"Our mission at Zinch is to change and to solve that problem so Latino businesses can prosper and contribute to the growth of the U.S. economy for everyone's long-term benefit," said De Alba.

For further information or to schedule an interview, contact Francisco De Alba at (866) 969-7878 or [email protected].

Contact:
Francisco De Alba
Zinch
https://zinchfin.com/
Los Angeles, CA
Phone: (866) 969-7878
Fax: (949) 209-2636
Email: [email protected]

SOURCE Zinch