Latino Business Recovery From Pandemic Crisis Is Nascent And Fragile

LOS ANGELES, May 26, 2021 /PRNewswire/ -- The first quarterly Camino Financial U.S. Latino Small Business Credit Survey offers insights on credit trends and the impact of COVID-19 on microenterprises between January 2021 to March 2021. Our Q1'2021 survey highlights about 12% of Latino-owned businesses (LOBs) received COVID relief from the government. Our analysis also indicates a gradual, yet still fragile recovery among LOBs.

 Download and subscribe to the Survey here.

Other key insights from the survey include:

• Recovery is nascent. - Applicant credit scores rose from 642 to 651 QoQ, offering evidence of stronger household balance sheets among Latino business owners, likely driven from pay off of debt and higher household savings from stimulus funds
• LOBs are optimistic, but the bar is low. - 80% of Latino business owners say that their business will be the same or better than before the pandemic
• LOBs were left out from the 2nd round of stimulus funding. - 32% of LOBs did not receive relief because they didn't have the resources to apply or were disqualified for technical reasons

This survey will be followed by quarterly-issued U.S. Latino Small Business Credit Surveys informed by 39,081 small business loan applications received directly by Camino Financial and a separate survey of 449 LOBs relating to the impact of COVID-19 on Latino small business owners.

About Camino Financial
Camino Financial is the first AI-powered Community Development Financial Institution ("neo-CDFI") expanding access to credit for underserved Latinx entrepreneurs in the U.S. The Company is uniquely positioned to offer affordable loans as it combines its proprietary AI technology with access to CDFI designated low-cost capital and resources.  Camino Financial has also produced the largest bilingual content hub to empower Latinx entrepreneurs to thrive and graduate into lower cost, longer term credit products. 

SOURCE Camino Financial, Inc.