![]() ![]() We need an administration that is not only committed to deploying stimulus into the economy, but is also intentional about designing stimulus programs around those with less. “This election is by far the most influential presidential election that will ever shape the destiny of millions of businesses and associated jobs in the U.S. Salas added that the recent Presidential election is extremely important for LOBs. And yet, 86% of LOBs are experiencing significantly lower to flat year over year growth as of August 2020.” Research shows LOBs are resilient with 78% at least partially open and 70% believe their business will be as good or better than pre pandemic levels. I would say that, out of all industries, restaurant and retail businesses are struggling the most with the closing, reopening, and reclosing of the economy. “LOBs that are innovating and adapting to the situation are the ones that are surviving by generating new opportunities to drive revenue. So which sectors of LOBs are doing well? Which sectors are struggling? Salas had this to say: ![]() Further capital injections are required to bolster the recovery of these businesses.” “In the absence of a second stimulus, several LOBs are going to find it difficult to survive. LOBs have limited cash-on-hand to operate their business beyond 3 weeks,” shared Salas. This is primarily driven by business readiness for outside capital, coupled with technical assistance and constant communication offered by lenders.”Īs the US government has struggled to put together a second stimulus package to aid businesses harmed by the ongoing health crisis, we asked Salas how important another COVID support program would be for LOBs. ![]() “However, Camino Financial research identified a cohort of LOBs, those with a pre-existing relationship with a lender, were 6.6x more likely to access PPP and other COVID support programs. “The PPP was largely unsuccessful at supporting LOBs with about ~3% penetration in the market,” said Salas. Salas criticized PPP as falling short of its intended goal: We asked Salas about the government support programs and more specifically, the impact of the Paycheck Protection Program (PPP) for LOBs. “That being said, they aren’t out of the woods yet, and the road to recovery requires additional capital to be injected into this market.”Ĭrowdfund Insider reached out to Salas for some additional feedback on Latino Owned Businesses and the current economic environment. Sean Salas, CEO and co-founder of Camino Financial, says that the report shows LOBs are displaying signs of resiliency in the face of adversity. The report also claims that LOBs are “discouraged from seeking additional funding or relief, with only 46% even applying.” 60% have less than four months of operating capital, including 21% with less than three weeks. Limited access to capital remains the single largest impediment to unlocking LOB growth potential. 70% of LOBs believe their business will be as good as or better than pre-pandemic levels, yet up to 10% of LOBs believe they will have to close their business permanently. In spite of the challenge, 78% have reopened and 44% have returned to pre-COVID revenue. The pandemic forced the majority of LOBs to close temporarily in 2020, and 46% saw revenue declines above 30%.
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