Report

Closing the Capital Gap

Closing the Capital Gap

Closing the Capital Gap

Latino-owned businesses are a fast-growing and vital part of the US economy, contributing significantly to job creation and small business growth, yet they remain systematically underfunded. Despite strong revenue growth and comparable credit profiles to white-owned businesses, they receive less than 1% of major venture and private equity funding and face barriers accessing affordable capital. This gap becomes critical around the $1 million revenue stage, where growth slows due to reliance on high-cost debt. Structural issues in lending, limited access to equity, and lack of awareness of financing options further constrain growth. Addressing these gaps through targeted investment, improved lending models, and tailored support could unlock trillions in economic potential.

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