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About the Biz2Credit Latino Small Business Credit Study

Biz2Credit, a leading online funding provider to small businesses, analyzed the financial performance of over 82,000 companies, including more than 10,000 Latino-owned firms, that submitted funding requests through the company’s online funding platform. The report covered small businesses across the country, from start-ups to established companies, from July 1, 2022 to June 30, 2023.

gqb-1 Overall, it was a stellar year for Latino-owned businesses. Average revenues were up significantly, but so were expenses, a reflection of inflation during the past year. Fortunately, earnings also rose sharply. gqb-2


Latino-Owned Businesses Versus Non-Latino Counterparts In Key Business Performance Categories During 2022-23

According to data gleaned from applications for financing in the past year, the following key facts emerged:
  • Average annual revenue for Latino-owned companies ($601,636) was Lower than those of non-Latino-owned companies ($667,204) in 2022-23.
  • Average Operating expenses for Latino business owners is $488,368 in comparison to $507,840 for non-Latino business owners in 2022-23
  • Average earnings (Annual Revenue - Operating Expenses) across all businesses rose by 67%. Latinoowned companies ($113,268) had lower profit than non-Latino-owned companies (159,365) in 2022-23.
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Latino-Owned Businesses Versus Non-Latino Counterparts In Key Business Performance Categories During 2022-23

  • Based on submitted applications, the average credit score for Hispanic business owners jumped from 632 in 2021-22 to 641 in 2022-23, while credit score for non-Hispanic business owners increased from 635 to 648.
  • The average age of business (in months) for Latino-owned businesses is lower (54) than for non-Latino businesses (63) in 2022-23. That’s approximately ten years in business.

Average Approved Amount For Latino-Owned Companies Is Lower Than For Non-Latino Companies

The average approved amount for Latino-owned companies was $20,516 less than non-Latino-owned firms in 2022-23.

The average loan size for Latino-owned companies was lower than for non-Latino-owned firms in 2022-23

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Loan Originations By State

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Loan Origination By Industries

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Juan Carlos Lomas – CEO and Founder of Vital Foods in South Carolina is continuing to see successful growth with his business.

gqb-1 We started with three employees and now we have over 1,200 employees working for us. We were looking to expand our business, open a new processing plant. Three new factories are on the way, and to keep the production going we need operational funding. gqb-2

Latino-owned vs. Non-latino-owned firms (YEAR-OVER-YEAR COMPARISONS)

Over the last year, businesses have seen an increase in performance across key metrics. With that, Latino-owned businesses have increased their revenue, however, their earnings have remained the same. Non-Latino year-over-year (YoY) change has outperformed Latino YoY change.

2022-23 vs. 2021-22 Percent Change

Key Categories Latino YoY % Change Non-Latino YoY % Change
Avg Annual Revenue +23.1% +54.4%
Avg Operating Expenses +23.6% +48.8%
Average Earnings +21.1% +75.2%
Avg Credit Score +1.3% +2.0%
Avg Age of business (in Months) +2.7% +15.8%
Source: Biz2Credit Latino-Owned Business Study for 2022-23

Latino-owned vs. Non-latino-owned firms (YEAR-OVER-YEAR COMPARISONS)

Detailed breakdowns of the changes in key metrics of Latino-owned businesses and Non-Latino year-over-year (YoY).

Latino 2022-23 2021-22 % Change Difference
Avg Annual Revenue $601,636 $488,827 +23.1% $112,809
Avg Operating Expenses $488,368 $395,265 +23.6% $93,102
Average Earnings $113,268 $93,562 21.1% $19,706
Avg Credit Score 641 632 1.30% 8
Avg Age of business (in Months) 54 52 2.7% 1
Non-Latino 2022-23 2021-22 % Change Difference
Avg Annual Revenue $667,204 $432,260 54.4% $234,943
Avg Operating Expenses $507,840 $341,316 48.8% $166,523
Average Earnings $159,365 $90,944 75.2% $68,420
Avg Credit Score 648 635 2.00% 13
Avg Age of business (in Months) 63 54 15.80% 9

Overall Growth Of Latino Businesses

  • According to Yahoo News, Lack of investment in Latino-owned businesses is contributing to a $900 Billion marketplace inefficiency.
  • At the time of application for national bank loans, Latino-owned businesses:
    • Have gross revenue that is 3 times larger than White-owned businesses
    • Have similar business and personal credit scores
    • Have lower outstanding debt on average than White-owned businesses
    • Have lower approval rates than White-owned businesses when requesting loans above $50,000.
  • Based on JPMorgan, Latino entrepreneurs make up 29 percent of the U.S. population by 2050, up from 17 percent today.
  • If Latino owned businesses grow as fast as the U.S. average, they could add $1.4 trillion to the U.S. economy. Which would add almost eight percent to the $18 trillion U.S. economy.
Source: Yahoo News, Hispanic Executive, JPMorgan Chase

Overall Growth Of Latino Businesses

The Latino population, which includes people of any race, increase by 767,907 in 2021, 1.2% growth (62.57 million in 2020). Since 2010, the Hispanic/Latino population grew 23%, while the non-Hispanic/Latino population has only increased by 4.3%.

Growth for period 2000-23

Population Segment Population Growth % Growth % of Total Growth
Hispanic 31,258,148 88.7% 52%
non-Hispanic White -7,080,206 -3.6% -13.3%
non-Hispanic Black 6,728,295 20% 11.2%
non-Hispanic Asian/PI 10,692,578 102.7% 17.8%
All Others 11,479,348 152% 19.1%

Into the Future : The Multicultural Boom 2023-2028

Population Segment Average Growth in Population 2023-2028
Year Month Day Hour
Hispanic 1,505,463 125,455 4,091 170
non-Hispanic White -1,158,565 -96,547 -3148 -131
non-Hispanic Black 252,577 21,234 686 29
non-Hispanic Asian/PI 338,508 28,234 921 38
All Others 494,300 41,192 1,343 56
  • New Claritas Report Reveals that the U.S. Hispanic Population Grew 89% Since 2000 – and Will Exceed 74 Million Consumers by 2028
  • According to the report, the U.S. Hispanic population is exploding. Today, around 66.5 million Hispanic consumers live in the United States, representing more than $1.7 trillion in annual buying power.
Source: Claritas Population Fact 2023


Industry Sector Definition : For the analysis, Biz2Credit examined the financials of companies that applied in the 2023 study in the following sectors:

  • Accommodation and Food Services - Activities of this sector are providing customers with lodging and/or preparing meals, snacks, and beverages for immediate consumption.
  • Construction - Activities of this sector are erecting buildings and other structures (including additions); heavy construction other than buildings; and alterations, reconstruction, installation, and maintenance and repairs.
  • Finance and Insurance - Activities of this sector involve the creation, liquidation, or change in ownership of financial assets (financial transactions) and/or facilitating financial transactions.
  • Health Care and Social Assistance - Activities of this sector are providing health care and social assistance for individuals.
  • Other Services (except Public Administration) - Activities of this sector are providing services not elsewhere specified, including repairs, religious activities, grantmaking, advocacy, laundry, personal care, death care, and other personal services.
  • Professional, Scientific, and Technical Services - Activities of this sector are performing professional, scientific, and technical services for the operations of other organizations.
  • Real Estate and Rental and Leasing - Activities of this sector are renting, leasing, or otherwise allowing the use of tangible or intangible assets (except copyrighted works) and providing related services.
  • Retail Trade - Activities of this sector are retailing merchandise generally in small quantities to the general public and providing services incidental to the sale of the merchandise.
  • Transportation and Warehousing - Activities of this sector are providing transportation of passengers and cargo, warehousing and storing goods, scenic and sightseeing transportation, and supporting these activities. Industry
  • Wholesale Trade - Activities of this sector are selling or arranging for the purchase or sale of goods for resale; capital or durable non consumer goods; and raw and intermediate materials and supplies used in production and providing services incidental to the sale of the merchandise.

Data Collection:

  • The data included in this study was collected from the submitted cases between July 1st, 2022, and June 30th, 2023. The study encompassed over 56,000 applications.
  • Based on verified cash flows of merchants on the Biz2Credit marketplace (using Submitted Annual Revenue and Submitted Operating Expense), we excluded cases where the ‘annual revenue’ or ‘operating expense’ exceeded $5 million from the analysis of revenue and expenses.
  • Biz2Credit used 2021-22 submitted applications to conduct a year-over-year comparison for 2022-23 data, showing average revenue, average operating expenses, and average earnings.

Data Preprocessing Methodology:

The four most important variables considered in pre-processing were:

  • Annual Revenue
  • Operating Expenses
  • Age of Business
  • Personal Credit Score

About Biz2Credit

Founded in 2007, Biz2Credit has arranged more than $7 billion in small business financing. Through its state of the art online platform, Biz2Credit directly offer business funding products. Biz2Credit believes small business funding should be easy to understand, easy to access, easy to use and always available when needed most. That is why Biz2Credit’s goal has always been to create the best and fastest small business funding platform.

To learn more and apply for business financing, visit or twitter @Biz2Credit, Facebook and LinkedIn

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