Texas ranks as the second-top state for Latino-owned small business loan applications, according to a new Biz2Credit study.
Other top states include California, New York, Florida and Arizona.
While the small business loan group saw Latino-owned firms’ earnings grow by 28 percent from 2015 to 2016, Biz2Credit found the firms’ credit scores fell in the same period.
The company also noted a 5 percent decrease in the number of loan applications by Latino entrepreneurs through their online lending platform in the past year.
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“Latino-owned companies had strong revenue figures in 2016. Usually this correlates to an uptick in requests for small business loans. However, it was not the case,” said Rohit Arora, CEO of Biz2Credit.
“Part of this could be related to uncertainty regarding immigration, President Trump’s insistence on building a wall along the border with Mexico, and an overall unease amongst the Hispanic community about Trump’s policies.”
Latino-owned businesses in the U.S. contribute over $ 668 billion to the national economy each year, according to the U.S. Latino Chamber of Commerce.