Who Are Today's Latino Business Owners? Texas Rises, Construction Leads and Latinas Build Lean
October 15, 2026 | Last Updated on: October 15, 2026
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The typical Latino- and Hispanic-owned business seeking financing today is an established company, not a startup. It has been operating for about six years, is most likely an LLC, and is increasingly based in Texas and building homes, roads, and offices. Biz2Credit looked at more than 11,000 Latino-owned businesses that applied for financing between October 2025 and September 2026 to see who’s gaining, who’s getting funding, and what the profile of a Latino-owned business looks like compared to the same period last year.
Texas passes California
Texas is now the #2 state for Latino-owned business funding requests. Its share of Latino-owned applications rose from 17.2% to 19.2%, and the number of applications grew 12.8%. California slipped to third, falling from 19.1% to 18.2% as its applications dipped 3.7%.
Florida held first place with 21.7% of all Latino-owned applications nationwide. Within Florida, Latino-owned businesses made up 26% of all applicants; in Texas, 24%.
| Rank | State | Share of all Latino-owned applications (U.S.) | Latino-owned share of the state’s applications |
|---|---|---|---|
| 1 | Florida | 21.7% | 26.4% |
| 2 | Texas | 19.2% | 23.8% |
| 3 | California | 18.2% | 20.9% |
| 4 | New York | 5.4% | 13.6% |
| 5 | New Jersey | 3.8% | 16.7% |
| 6 | Arizona | 3.3% | 19.5% |
| 7 | Colorado | 2.3% | 16.9% |
| 8 | Illinois | 2.3% | 10.4% |
New Mexico stands out for concentration. Nearly a third (32%) of businesses there that applied for financing were Latino-owned, the highest share of any state.
Construction is 1 in 5
Construction accounted for 20.8% of Latino-owned applicants this year, up from 19.1%. That's about 1.5 times its share among non-Latino-owned businesses (13.7%).
The rest of the top five: Other Services (13.4%), Accommodation and Food Services (11.5%), Transportation and Warehousing (8.6%) and Retail Trade (8.4%). Retail fell out of the top four, down from 10.0%. Health care is the fastest-rising category, growing from 5.5% to 6.4% of Latino-owned applicants.
More structure, fewer sole proprietors
Latino-owned businesses are formalizing. LLCs made up 62.9% of applicants and corporations 25.6%, up from 24.3%. Sole proprietorships fell from 10.4% to 8.8%.
Latina-owned businesses: lean and growing, with room to close the gap
Latina-owned businesses made up about a quarter (25%) of Latino-owned applicants. They are smaller and younger than other Latino-owned businesses: average revenue of $754,143 vs. $950,079, and about 69 months in operation vs. 76.
They run just as efficiently. Latina-owned businesses posted a 7.4% margin, essentially matching the 7.5% of other Latino-owned businesses. They also improved their credit standing, with average scores rising 11 points to 649.
The gap shows up in the dollars, but it’s moving. The median funded amount for a Latina-owned business rose 17% this year, from $30,000 to $35,000, keeping pace with the 20% increase for other Latino-owned businesses (from $50,000 to $60,000).
What this profile means
Latino-owned businesses are concentrated in industries that build and serve their communities: construction, personal services, restaurants, and transportation. These businesses often need financing for equipment, materials, and payroll ahead of payment. For Latina-owned businesses, the data points to one priority: closing the gap in funded amounts so financing matches the businesses' performance.
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Methodology: Biz2Credit analyzed 11,138 applications for financing submitted by Latino-owned businesses between October 1, 2025 and September 30, 2026, compared with 11,015 submitted between October 1, 2024 and September 30, 2025. Industry categories follow NAICS. "Latina-owned" refers to applicants identifying as female; "other Latino-owned businesses" includes applicants identifying as male or not reporting gender. Revenue and operating expenses above $5 million were excluded.
Disclaimers
The data set out in this report is based on based on applications submitted through Biz2Credit's platform; it does not reflect the performance of funded financings, and is provided for informational purposes only. It is not investment advice, legal advice, or an offer or solicitation to buy or sell credit or any security. Aggregate portfolio metrics reflect the performance of a subset of Biz2Credit's portfolio applications in the reporting period, are not indicative of individual business results, and should not be extrapolated to any small business population as a whole or any subpart thereof. Past performance does not guarantee future results. Third-party data may be included in this report. Biz2Credit does not independently verify any such third-party data. All data and metrics included in this report are subject to revision as underlying data is updated.
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