Latinx-Owned Small Businesses Showing Signs of Recovery from the Pandemic Crisis, Survey Finds

Sam Blake

Sam primarily covers entertainment and media for dot.LA. Previously he was Marjorie Deane Fellow at The Economist, where he wrote for the business and finance sections of the print edition. He has also worked at the XPRIZE Foundation, U.S. Government Accountability Office, KCRW, and MLB Advanced Media (now Disney Streaming Services). He holds an MBA from UCLA Anderson, an MPP from UCLA Luskin and a BA in History from University of Michigan. Email him at samblake@dot.LA and find him on Twitter @hisamblake

Latinx-Owned Small Businesses Showing Signs of Recovery from the Pandemic Crisis, Survey Finds

Latinx-owned small businesses are proving resilient in their recovery from the coronavirus crisis. Most were forced to shut down, but over three-fourths have reopened their doors.

So says a new national report from L.A.-based fintech firm Camino Financial that looked at the impact of the pandemic on these businesses.


"The Latino business market continues to be resilient," Camino CEO Sean Salas said, but "access to capital is drastically needed to enable Latino entrepreneurs to drive a quicker economic recovery."

The study examined nearly 35,000 Camino loan applications over the last two years and surveyed 368 of those small-business applicants. Nearly half of those initially saw their revenues decline over 30% after the pandemic hit. Most were forced to shut down, but 78% have reopened, and 44% reported revenues returning to pre-pandemic levels.

Coupled with this resilience, the surveyed businesses are feeling optimistic; 70% reported they think business will be as good as or better than before the pandemic.

The report also found a 14% quarterly increase in loan applications among Latinx-owned sole proprietorships, which Camino called a "leading indicator of recovery." Another encouraging sign is that loan applications among Latinx-owned businesses in operation for two years or fewer have returned to pre-pandemic levels.

These businesses face obstacles to a rebound, however. Sixty percent of those surveyed have less than four months' worth of operating capital, for instance, and 21% have less than three weeks'.

Access to capital and financial education continues to be an issue for these companies. Camino found that businesses with a pre-existing relationship with a lender were nearly seven times more likely to receive PPP relief funds compared to those going it alone.

What's the Remedy?

"What is needed is more access to capital, coupled with education and technical support from lenders focused on lending to underbanked communities," Salas told dot.LA.

He pointed to Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs) as steps in the right direction. But there's more to be done, he said.

"We can't just invite CDFIs and MDIs to participate; we also need to give them access to low-cost liquidity to enable the flow of capital into underserved markets," Salas said, noting that CDFIs were shut out of the first phase of the PPP process.

Salas called for a "rethink and redesign" of the next round of PPP, suggesting a more finely tuned approach. "We need to recognize the nuances of a microbusiness vs. a small business vs. a mainstreet business," he said.

Salas also advocates for including undocumented folks in such programs, noting that population contributes over $30 billion in federal and state taxes.

"We need to see capitalizing Latino entrepreneurs as part of the solution," Salas concluded. "A hand-up, not a hand-down."

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samblake@dot.la

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Regard Raises $15M for AI-Powered Software That Help Doctors Diagnose Patients

Decerry Donato

Decerry Donato is dot.LA's Editorial Fellow. Prior to that, she was an editorial intern at the company. Decerry received her bachelor's degree in literary journalism from the University of California, Irvine. She continues to write stories to inform the community about issues or events that take place in the L.A. area. On the weekends, she can be found hiking in the Angeles National forest or sifting through racks at your local thrift store.

Regard Raises $15M for AI-Powered Software That Help Doctors Diagnose Patients
Courtesy of Regard

Culver City-based health care startup Regard, which uses AI-driven software to help physicians accurately diagnose patients, has raised $15.3 million in Series A funding.

Pasadena-based Calibrate Ventures and Colorado-based Foundry Group led the investment in Regard, formerly known as HealthTensor. Other investors that participated in the round include TenOneTen Ventures, Susa Ventures, Brook Byers of Byers Capital and Dropbox CEO Drew Houston. The new funding will be used to grow Regard’s team and customer base, the company said in a press release.

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This Week in 'Raises': Regard Secures $15M, MaC Venture Capital Raises $203M for Second Fund

Decerry Donato

Decerry Donato is dot.LA's Editorial Fellow. Prior to that, she was an editorial intern at the company. Decerry received her bachelor's degree in literary journalism from the University of California, Irvine. She continues to write stories to inform the community about issues or events that take place in the L.A. area. On the weekends, she can be found hiking in the Angeles National forest or sifting through racks at your local thrift store.

This Week in 'Raises': Regard Secures $15M, MaC Venture Capital Raises $203M for Second Fund
Image by Joshua Letona

This week in “Raises”: A local healthcare startup secured funding to help grow the team and deploy its software to more physicians and hospitals, while Black-led, seed-stage venture capital firm surpassed its goal for its second fund.

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Braid Theory's Plan to Foster the Next Generation of Ocean Tech Startups

Keerthi Vedantam

Keerthi Vedantam is a bioscience reporter at dot.LA. She cut her teeth covering everything from cloud computing to 5G in San Francisco and Seattle. Before she covered tech, Keerthi reported on tribal lands and congressional policy in Washington, D.C. Connect with her on Twitter, Clubhouse (@keerthivedantam) or Signal at 408-470-0776.

Braid Theory's Plan to Foster the Next Generation of Ocean Tech Startups
Photo courtesy of the Port of Los Angeles.

San Pedro-based Braid Theory is one of the growing number of accelerators in the country looking to grow the so-called blue economy, which spans a range of ocean-related industries and is estimated at $2.5 trillion a year.

The accelerator is accepting online applications until July 18, with its second-ever program kicking off in August.

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https://twitter.com/KeerthiVedantam
keerthi@dot.la
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