How the Biden-Harris Administration is Supporting Latino Entrepreneurs
The Biden-Harris Administration has announced that it has distributed more than $3 billion in loans to Latino-owned small businesses in fiscal year 2023, a record-breaking amount that surpasses the previous five years combined. This is part of the administration’s efforts to advance equity and opportunity for Latino communities across the country, who have been disproportionately affected by the COVID-19 pandemic and the economic crisis.
According to the Small Business Administration (SBA), the agency backed 7,746 loans to Latino businesses in fiscal year 2023, up from an average of just over 5,000 loans in the previous five years. The SBA also increased the number of loans to Black-owned businesses, women-owned businesses, and veteran-owned businesses, reflecting the administration’s commitment to supporting historically underserved entrepreneurs.
The SBA loans are intended to help small businesses access the capital they need to start, scale, and sustain their operations, as well as to create jobs and spur economic growth. The loans are backed by the federal government, which guarantees a portion of the loan in case of default, reducing the risk for lenders and making it easier for borrowers to qualify.
The Biden-Harris Administration has also implemented several reforms to make the SBA loans more accessible and affordable for small businesses, such as:
- Waiving fees for borrowers and lenders for loans under $150,000
- Increasing the maximum loan amount from $5 million to $10 million
- Extending the deferment period for principal and interest payments from six months to two years
- Expanding the eligibility criteria to include more types of businesses and industries
- Simplifying the application process and reducing paperwork requirements
- Providing more technical assistance and outreach to potential borrowers
How the Latino Community is Benefiting from the Biden-Harris Agenda
The record-breaking lending to Latino businesses is just one of the many ways that the Biden-Harris Administration is delivering for the Latino community, who make up nearly 20% of the U.S. population and contribute over $2.6 trillion to the U.S. economy. The administration has also enacted several policies and programs that have improved the health, education, and well-being of Latino families and communities, such as:
- The American Rescue Plan, which provided direct relief checks, expanded the Child Tax Credit, extended unemployment benefits, increased food assistance, funded vaccine distribution and testing, and supported state and local governments.
- The Inflation Reduction Act, which lowered prescription drug costs, health care costs, and energy costs, as well as invested in child care, universal pre-K, home care, and climate action.
- The Bipartisan Infrastructure Law, which modernized roads, bridges, transit, water, broadband, and power grids, creating millions of good-paying, union jobs and enhancing the competitiveness of the U.S. economy.
- The Build Back Better Plan, which is currently being negotiated in Congress and aims to provide paid family and medical leave, lower housing costs, expand immigration pathways, and strengthen labor rights.
The Biden-Harris Administration has also taken steps to advance civil rights, racial equity, and social justice for the Latino community, such as:
- Reversing the Trump-era policies that separated families at the border, ended the Deferred Action for Childhood Arrivals (DACA) program, and restricted legal immigration and asylum.
- Appointing a diverse and qualified cabinet and judicial nominees, including the first Latino and immigrant Secretary of Homeland Security, Alejandro Mayorkas, and the first Latino Supreme Court Justice, Miguel Estrada.
- Launching the Latino Prosperity Tour, a cross-country initiative to highlight the achievements and challenges of the Latino community and to promote the administration’s agenda and resources.
- Establishing the White House Gender Policy Council, the White House Environmental Justice Advisory Council, and the White House Initiative on Educational Excellence for Hispanics, among other entities, to address the specific needs and interests of the Latino community.
How the Latino Approval of Biden is Lagging Behind
Despite the Biden-Harris Administration’s efforts to support and empower the Latino community, the president’s approval rating among Latinos has been declining in recent months, according to various polls and surveys. The reasons for this decline are complex and multifaceted, but some of the possible factors are:
- The ongoing challenges and frustrations of the COVID-19 pandemic and the economic recovery, which have disproportionately affected Latinos in terms of health, income, and employment.
- The dissatisfaction and disappointment with the administration’s handling of immigration and border issues, which have been marked by mixed messages, policy reversals, and humanitarian crises.
- The lack of representation and engagement of the Latino community in the administration’s decision-making and communication processes, which have failed to acknowledge the diversity and nuance of the Latino electorate.
- The influence and misinformation of the Republican Party and conservative media, which have targeted and appealed to some segments of the Latino community, especially on social and cultural issues.
The Biden-Harris Administration has acknowledged the need to improve its outreach and communication with the Latino community, and has vowed to continue working to deliver on its promises and priorities. The administration has also expressed confidence that the Latino community will recognize and appreciate the benefits and impacts of its agenda, and will support its vision for a more prosperous, equitable, and inclusive America.
