Addressing Disparities in Finance for Hispanics and Latinos

Source: https://tinyurl.com/2p9cy4jp

By: Vianessa Castaños |

 

One of the most significant social issues facing Latinos in America is the myriad obstacles preventing them from building a secure financial future. These financial disparities begin with high-interest lending services, insufficient credit history and higher than average student loan debt, among other factors.

The effects of these disparities appear in the demographics of rental and homeownership rates in many areas. While the homeownership rate among Hispanics increased by 47.5% since 2019, many younger Latinos find that their path to homeownership and financial security are hindered by monthly student loan repayments, which in turn prevents many of them from being able to build up their savings. Meanwhile, other more vulnerable members of the Latino community, such as immigrants and non-native English speakers, face challenges with predatory lending practices and unfavorable financing options.

5 Financial Barriers and Solutions

There are a number of obstacles that prevent the Hispanic and Latino community from being able to grow their savings and achieve their financial goals. Learning to save, predatory lending practices and poor or insufficient credit history are just some of the major barriers that prevent the community from reaching financial stability. And when each of these factors compound, many find themselves in a situation where they are unable to invest their money and create generational wealth.

1. Learning How to Save and Make Investments

Many Latino immigrants are unbanked, meaning that they don’t rely on financial institutions to deposit and save money. This practice stems from a lack of distrust in the financial institutions in their home countries, coupled with a lack of financial education in general. It’s also common for individuals to put their funds toward caring for family members or supporting their children through school rather than saving for their own retirement. And while many Latinos are responsible with their finances, they lack money mentors within their communities who can teach them how to properly plan for retirement or provide guidance on making financial investments.

BEST OPTIONS TO MANAGE SAVING AND INVESTING

If available, take advantage of your employer-sponsored 401(k) or brokerage account. Also, consider an additional savings vehicle, such as an individual retirement account (IRA), Roth IRA or certificate of deposit (CD), which is a type of low-risk federally insured savings account.

2. Predatory Lending Practices

The Hispanic and Latino community can often have limited access to financial literacy materials, which means the community can be left without the tools necessary to manage finances and build up savings. Limited access to resources coupled with the potential financial implications of maintaining a commercial bank account can push individuals to rely on predatory alternative financial services that may be mortgage scams, which can charge upwards of 400% APR. In 2017, people who relied on alternative financial services such as payday loans, check cashing services and rent-to-own stores ended up spending more than $173 billion in fees and interest charges.

BEST OPTIONS TO MANAGE PREDATORY LENDING PRACTICES

Whenever possible, seek out a commercial banking institution and avoid or limit the use of products that do not actually help you build your credit, such as prepaid credit cards. While you may think that you are banking with an accredited institution, many alternative “banking” entities charge above-average interest rates. They may not carry insurance, thereby putting your investment at risk while at the same time doing nothing to help build your credit-worthiness.

Juntos Avanzamos works with a network of 108 credit unions in 26 states that serve to empower Hispanic and immigrant communities. These credit unions will work with you to open a checking or savings account and establish your credit, even if you don’t have a social security number.

3. Limited Access to Credit and Low Credit Scores

The median FICO credit score for Hispanics was 684 in 2018. Compare that to 742 for non-Hispanic whites and 722 for the overall population. You can get a picture of the discrepancy between each demographic. These lower credit scores can be attributed to limited access to credit-building opportunities as well as limited knowledge and access to information on how to build and maintain a healthy credit score. And because credit-worthiness is taken into account when qualifying for loans and mortgages, aspiring Hispanic homeowners can often find their options for financing a new home limited, or they are unable to secure a conventional home loan or down payment altogether.

BEST OPTIONS TO MANAGE LIMITED ACCESS TO CREDIT AND LOW CREDIT SCORES

The first step to improving your credit score is getting a copy of your credit reports from the three nationwide credit reporting companies — Equifax, Experian and TransUnion. You can easily do this by using an online credit report, like a credit report from Central Source LLC, which grants you access to all three credit reports for free once a year. By knowing your credit score isn’t enough, you’ll also want to understand what that score means, which is where the list of consumer reporting companies from the Consumer Financial Protection Bureau can help. The website offers a broad range of financial education materials in nine languages on topics ranging from how to rebuild your credit to how to get a home loan, all available for free.

4. High Cost of Buying a Home Relative to Income

Because Hispanic populations tend to be more concentrated in high-cost markets, the homes Hispanic and Latinos buy are valued at lower than median market rates. But they are more expensive overall relative to their income level. While the majority of Hispanics finance their homes through traditional methods, they disproportionately have to rely on FHA insured mortgage loans. These loans often end up being costlier and can negatively impact lifetime wealth-building potential. Another instance in which Hispanics and Latinos can find themselves in a high-cost market is due to gentrification. Real estate appreciation can often lead to displacement and sees many families priced out of their own communities. Gentrification drives up housing costs and demand for low wage workers, who then, in turn, cannot afford to buy homes in their very communities.

BEST OPTIONS TO MANAGE HIGH COST OF BUYING A HOME RELATIVE TO INCOME

Down payment assistance programs exist to help homebuyers find loans and grants that can help drive down the cost of your potential down payment. These programs are typically meant for first-time homebuyers, but depending on the program, some exceptions can be made. You can also contact local community organizations in your state to inquire about homebuyer education programs that can teach you what to expect when buying a home — from how to select a mortgage to how to negotiate the selling price.

5. Student Loan Debt

Many Latinos are first-generation college students who are left to navigate higher education costs without much guidance. And while there are options for financial aid for Hispanic students available, 72% of Latino students take on student loan debt in order to attend university. In fact, 12 years after starting college, the median Latino student borrower still owes 83% of their initial loan. This debt affects their ability to save money well into adulthood, which is further compounded when they become delinquent or default on payments.

BEST OPTIONS TO MANAGE STUDENT LOAN DEBT

This financial literacy handbook is a great place to start learning about managing your money and navigating major expenses. Also, check out The Hispanic Center for Financial Excellence — it offers free financial education services and can teach you how to reduce your debt and develop a savings strategy.

Expert Insight on Navigating Financial Constraints

What are your own observations about the financial disparities within the Latino/Hispanic community? Why do you think these disparities exist?
Student loan debt is seen as a major barrier to financial security for many. Can you offer any advice on how to tackle (or avoid) student loans?
What are some tips to start saving and develop a strong relationship with money for Hispanics and Latino?
What are the best ways for Hispanics and Latino to get educated on finances? Are there any specific resources you recommend?

Financial Resources for the Hispanic and Latino Community

There are many resources available to help in your journey to financial success. From debt management programs to scholarships and mortgage financing assistance, these organizations and programs can help you get ahead.

Financial Services and Programs

Latino Educational Fund: LEF’s financial literacy courses provide Latinos with the knowledge they need to make informed decisions about their futures and their families’ futures related to banking, credit, bankruptcy and mortgage lending.
Fuente Credito: Fuente Credito, a small-dollar credit pilot program coordinated by UnidosUS, facilitates access to affordable loans. It offers an online credit application designed to provide fast and personalized options for immigrants who need assistance in financing immigration fees related to Deferred Action for Childhood Arrivals (DACA), citizenship or other legal services.
FDIC Money Smart: Money Smart offers a Spanish-language financial education program to help individuals improve their financial health.
Free Financial Literacy Course: This six- to 10-hour course from Alison concentrates on the basics of personal finance. From budgeting and saving to debt management and retirement planning, this class aims to improve your overall financial literacy to ensure you can manage your today and plan for tomorrow.

Technical Tools, Apps and Assistance

Mortgage Calculator: MoneyGeek’s simple and free mortgage calculator helps you estimate your monthly mortgage payment with the principal and interest components, property taxes, homeowner’s insurance and HOA fees. Once you input the numbers, you’ll see a detailed mortgage payment schedule.
Mission Asset Fund: MAF offers loans to help individuals cover their immigration expenses; part of the process includes a financial education course. You can download their app to track your progress, review your loan and track your payment history and credit score.
Mint: Mint is a budget tracker and planner that helps you easily manage your finances. One feature that makes this app so appealing is that it allows you to track your credit score for free.

Professional Organizations

Association of Latino Professionals in Finance and Accounting (ALPFA): The ALPFA provides professional development and career-building opportunities for Latinos. They partner with several educational institutions to help educate Latino leaders in finance.
Hispanic Heritage Foundation: The White House founded the Hispanic Heritage Foundation in 1987. It offers a series of free podcasts and videos focused on money management, debt management and wealth mindset, along with programs to promote leadership and education within the Hispanic community.
Congressional Hispanic Caucus Institute (CHCI): CHCI provides leadership, public service and policy experiences to Latino students and young professionals.
American Society of Hispanic Economists: This professional association of economists is focused on addressing the under-representation of Hispanic Americans in the economics profession. Its work centers on researching policy and economic issues affecting Hispanics in the U.S.
National Organization for Hispanic Real Estate Professionals (NAHREP): The NAHREP work to champion homeownership in the Hispanic community. They are advisers and advocates who are available to help Hispanic families create generational wealth.
United States Hispanic Chamber of Commerce (USHCC): The USHCC promotes the economic growth and development of Hispanic businesses. It provides support to small and minority-owned businesses.
The Hispanic Institute: The Hispanic Institute manages several ongoing projects, including the study of Hispanic economic contributions, media monitoring, consumer fraud protection, citizenship education and technology and telecommunication research.
New America Alliance: This organization of American Latino business leaders promotes the Latino community's economic advancement, focusing on economic and political empowerment and public advocacy to improve the quality of life in the United States.

Advocacy Organizations

UnidosUS: Formerly known as NCLR, Unidos serves the Latino community through nearly 300 affiliates throughout the country. It provides advocacy in civic engagement, civil rights and immigration, education, workforce and the economy, health and housing.
Mission of the League of United Latin American Citizens (LULAC): LULAC is to advance the economic condition, educational attainment, political influence, housing, health and civil rights of the Hispanic population of the United States.
Hispanic Federation (HF): Established in 1990, HF is a nonprofit organization to support the Hispanic community, families and institutions. Its work includes education, health, immigration, civic engagement, finances and the environment. HF offers advocacy services, community assistance programs and capacity-building opportunities.

Community Support Groups

Healthy Hispanic Living (HHL): HHL fosters wellness and quality of life for Hispanics by focusing on all aspects of health — physical, mental, financial and societal. It works to include issues and concerns the community faces from a cultural perspective.
Arte Sana (Art Heals): Arte Sana is a nonprofit organization dedicated to eliminating sexual and gender-based violence. It offers cyber advocacy and survivor activism, prevention and survivor empowerment through art, and training courses on sexual assault in Spanish and English.
National Compadres Network: The National Compadres Network is an organization that works to decrease issues such as domestic violence and child abuse, substance use, gang violence, racial inequity, teen pregnancy and issues around heterosexism. Its goal is to enhance and re-root individuals, families and communities by honoring, rebalancing and redeveloping their traditions, values, practices and identities.

Housing Resources

U.S. Dept. of Housing and Urban Development (HUD): HUD offers housing counseling to help consumers make informed housing decisions. HUD works with organizations, such as UnidosUS, in developing and supporting Latino homeownership programs in various states across the country.
Homeownership Assistance Programs: MoneyGeek’s very own guide to help you better understand the homeownership process. Here, you can find information on grants, loans and home purchasing programs.
Federal Housing Administration (FHA) Loan Requirements: This MoneyGeek guide provides educational resources to educate home buyers about FHA, VA and USDA government-insured mortgage loans.

Scholarships and Financial Aid

Scholarships for Hispanic Students: MoneyGeek offers a full, comprehensive guide to finding scholarships and resources for Hispanic students.
Hispanic Association of Colleges and Universities (HACU): HACU is an advocate for Hispanics in higher education and offers a number of resources, including a scholarship resource list.
TheDream.US: This is the largest college access program for DACA recipients and undocumented students. They offer scholarships to those who do not qualify for federal financial aid or in-state tuition due to their residency status.
FAFSA: The Free Application for Student Financial Aid (FAFSA) is a U.S. Department of Education service for applying for federal financial aid for students.

Health Resources

Medicare Advantage’s Latino Health Resource Guide: Medicare Advantage compiled this resource guide for Latinos and Hispanics to find health care providers by state and categories, such as dental, senior care and caregiving, substance abuse and mental health. This guide is available in Spanish and English.

About the Author

Vianessa Castanos formerly worked as a scriptwriter and producer for personal finance adviser Ramit Sethi of I Will Teach You to be Rich. She is also a culture & lifestyle writer who specializes in issues pertaining to the Latinx community in the U.S. and abroad.

STC Consulting certified to do business with the Port of Houston

"Among the many partnerships formed in 2021, one community leader was able to make a significant connection that thrust her business to a new level. Founder and CEO of STC Consulting, Soledad Tanner joined forces with the Port of Houston as she became certified to do business with one of the world’s largest ports on the Gulf Coast. “The process of getting certified as a Minority Business Enterprise (MBE) and Women Business Enterprise (WBE) was step by step, easy to follow. I was already certified by the City of Houston, which is one of the accepted certifications,” Tanner said".

The partnership was not only a strategic move, but it created a whole new world of opportunities for her thriving company whose firm helps improve the profit and productivity of businesses. “The Port of Houston is a massive and strategic engine of our local economy. The potential of working with them on future procurement opportunities is a life-changing event, not only for my business but for so many local businesses,” Tanner shared. 

As the community continues to navigate through unchartered waters in the coming year, one thing is certain, the Houston East End Chamber of Commerce will continue to be a changemaker leading the way for more members to form partnerships highlighting the camaraderie and determination of neighbors coming together to help one another. We invite you to become a member and allow us to help you connect with other businesses and grow in 2022". 

(pag 12 & 13 on pdf file)

 

Latinos Accounted For 50%+ U.S. Growth In Past Decade

Source: https://tinyurl.com/y7vnhehr

Written by: Karla Fernandez Parker , Columnist, August 27, 2021

(Source: Latest US Census)

1.Latinos drove population growth in the U.S., having increased from 50.5 million in 2010 to 62.1 million people in 2020. That accounts for 51.1% of the overall population growth of 22.7 million. By contrast, the general population in the U.S. only grew by 7.4% during the same period.

2.Latino businesses accounted for 80% of all net new businesses created in the past 10 years.

Soledad Tanner, M.I.B

The figures are out from the latest U.S. Census, and it’s clear Latinos drove population growth in the U.S., having increased from 50.5 million in 2010 to 62.1 million people in 2020. That accounts for 51.1% of the overall population growth of 22.7 million.

By contrast, the general population in the U.S. only grew by 7.4% during the same period.

The states with the highest percentage change of Latino growth in the past decade were Pennsylvania (45.8%); North Carolina (39.8%); Florida (34.9%); and Georgia (31.6%). Add to this the fact that Latino businesses accounted for 80% of all net new businesses created in the past 10 years, and we can clearly see this economic engine is becoming more powerful.

Latinos account for 18.7% of the total population, meaning nearly one in five Americans are Latino. Looking at the U.S. population in general, 53% of people under the age of 18 are persons of color. Practically every major metropolitan area saw population growth, while the population of rural areas continues to decline.

So where are the retailers in all of this? Retail marketers continue to woefully underspend on the Latino market -- and take a generic view of this extremely diverse group of Americans who span a myriad of skin tones, racial backgrounds, levels of acculturation, and countries of origin and identity.

Ad agencies have made little progress in diversifying their employee rosters. The proof is in the advertising product that continues to treat the Latino market as a monolith. In an age when we can narrowly target by diet selection, neighborhoods, and brand affinity, one can only think marketers are reluctant to recognize how powerful this segment has become and would rather stick with demographics they are comfortable with.

The reality is advertisers keep taking the easy way out at the expense of increased profits. We have more evidence than ever that the Latino population has more spending power, is in major metropolitan areas, and is driving small business creation as well as gaining in higher education attainment.

It’s way past time to look at who is on your marketing team, at your ad agency, and in your marketing messages.

Good News For Minority-Owned Businesses: Community Banks Get First Crack At The New Round Of PPP Loans

Soruce: https://tinyurl.com/y3hgvm83

Written by: Brian ThompsonSenior Contributor
Personal Finance
JD/CFP® helping LGBTQ entrepreneurs thrive in business and in life.

LARGO, MD - FEBRUARY, 08: (L) Louvenia Williams, esq owns Corporate Title, Inc. She's doing the ... [+] THE WASHINGTON POST VIA GETTY IMAGES

The Paycheck Protection Program (PPP) reopens tomorrow, but it won’t offer the same edge to big, well-financed businesses as the first iteration did. You might remember the uproar over some very large businesses—with plenty of other sources of liquidity—swooping in to claim PPP money. This time, to promote access to capital, initially only community financial institutions will be able to make First Draw PPP Loans on Monday, January 11, and Second Draw PPP Loans on Wednesday, January 13. Then PPP will open to all participating lenders shortly thereafter. Let’s talk about why this change is happening and how to take advantage of the change if you’re one of those borrowers.

The first round had problems

The initial rollout of PPP was a mess, and it’s easy to see why. The Coronavirus Aid, Relief, and Economic Security (CARES) Act, signed into law on March 27, 2020, allotted $349 billion for the Paycheck Protection Program. Eligible business, the self-employed, sole proprietors, freelance and gig workers were all welcome to apply. Many rushed to take advantage of favorable features including no personal guarantees or collateral required and payments deferred for six months. Best of all, part of the loan could be forgiven and not counted as income as long as the money was spent on certain operating expenses during the first weeks after origination.

On Tuesday March 31st, Treasury Secretary Steven Mnuchin announced that “Treasury and the Small Business Administration expect to have this program up and running by April 3rd so that businesses can go to a participating SBA 7(a) lender, bank or credit union, apply for a loan and be approved on the same day.” That gave banks four days to set up a brand-new system that would allow small businesses to apply for a loan and be approved in the same day.

Four days turned out to be too fast, and chaos ensued. Just hours before the April 3rd start date, banks began notifying customers that they wouldn’t be ready for the deadline. Then when the program got going, big banks allotted scarce funds to their best customers and faced lawsuits over the way they handled the rollout. The self-employed, sole proprietors, freelancers and gig workers were locked out for the first week—a big problem when the initial funds were exhausted in less than two weeks. Many aspects of the program had to be clarified on the fly. So far there have been almost 30 Interim Final Rules and 11 pages of Frequently Asked Questions.

Shortly after the initial funds ran out, Congress allocated an additional $320 billion to the program. By the beginning of May, the program had made over 2.5 million loans with a total value of $187.1 billion—about 60% of the funds available in round two. And by the initial end of the program, PPP had 5.2 million loans worth $525 billion to America’s small businesses, supporting an estimated 51 million jobs. According to SBA data more than 87% of the loans were $150,000 or less, with an average loan size of $101,000. Additionally, the SBA says 27% of the funds went to low- to moderate-income communities.

Despite the program’s progress, PPP still had a huge problem. Initially, an April 6th report from the Center of Responsible Lending (CRL) found that roughly 95% of Black-owned businesses, 91% of Latino-owned businesses, 91% of native Hawaiian or pacific Island-owned businesses, and 75% of Asian-owned business “stand close to no chance of receiving a PPP loan through mainstream bank or credit unions.”

A later Brookings Institution report showed that:

• On average it took 31 days for small businesses with paid employees in majority-Black ZIP codes to received PPP loans — seven days longer than those in majority white communities.
• For non-employer businesses, the loan delay between majority-Black and majority white neighborhoods grew to nearly three weeks.

Brookings points out that “This delay is particular acute because, according to the JPMorgan Chase Institute, in at least 90% all majority-Black and majority-Latino or Hispanic neighborhoods, a majority of small businesses have cash buffers of less than three weeks, compared to only 35% of majority-white neighborhoods.”

Minority-owned firms have been shut out for a variety of reasons. They’re less likely to have a relationship with lending banks. Their owners may not have access to financial and legal expertise. Even after the government expanded participation to FinTechs and community banks and set aside $60 billion explicitly for community finance institutions, minorities got less than their share. Brookings noted that Black business owners were more likely to be denied PPP loans compared to white business owners with similar application profiles due to outright lending discrimination.

Why this is important

This is not the first time communities of color have been left out of sweeping government reform. In fact, it’s happened repeatedly Reconstruction after the Civil War to The New Deal during the Great Depression to The Great Recession of 2008. The book The Color of Money: Black Banks and the Racial Wealth Gap by Mehrsa Baradaran, takes a deep dive into the history of discrimination in federal programs. The author demonstrates that “the hand that drives black poverty is not a natural and invisible one, but rather the coercive hand of the state that has consistently excluded black from full participation in American capitalism.”

I’ve written about the Racial Wealth Gap before, but these statistics are worth repeating

• The financial crises of 2008 wiped out 53% of total black wealth
• Today, black families have a median net wealth of $17,150 compared to a white family’s median of $171,000. The median net worth of Latino Households was $20,720.
• The wealth gap exists at every income and education level. On average white families with college degrees have over $300,000 more wealth than black families.
• Moreover, studies reveal that the gap is accelerating — over the last 30 years, the average wealth of white families has grown at three times the rate for the average black family.

Discrimination doesn’t just affect black and Latino families. In the past, California passed laws against Japanese businessmen after they became economically success. Native American had their land taken away when oil was discovered on it.

Small businesses have been touted as the backbone of the U.S. economy. Additionally, the racial wealth gap is much less significant for entrepreneurs than for any other sector of the population. Yet an October 2020 Main Street Alliance and Color of Change poll found that almost half of Black-owned small business have shut down already or will soon.

What it’s like now

Funds in the next round of PPP are limited, as they have been in previous rounds. Congress has approved $284 billion in new loans, and the deadline to apply is March 31st, 2021. Now that forgiveness and tax rules are clearer, the money is likely to go much faster. The Trump administration expects that this new round of funding will be sufficient to meet demand, but we’ll see.

The SBA is taking steps to ensure the hardest hit communities don’t miss out as they did last time. Small Business Administration (SBA) Administrator Jovita Carranza said the new “guidance builds on the success of the program and adapts to the changing needs of small business owners by providing targeted relief and a simpler forgiveness process to ensure their path to recovery.”

Some of those steps include:

• Accepting PPP loan applications only from community financial institutions or at least the first two days when the PPP loan portal reopens
• Direct Lender Match borrower inquiries to small lenders who can aid traditionally underserved communities
• Match small businesses through Lender Match with Certified Development Companies (CDC), Farm Credit System lenders, microloan intermediaries and traditional small asset size lenders.

In its guidance, the SBA called upon its lending partners to “redouble their efforts to assist eligible borrowers in underserved and disadvantaged communities.” Some questions still exists, however, of whether institutions that have been enlisted in offering a head start will actually be ready. We may end up with a situation as we did last April where the desire to start the program doesn’t match reality.

Next steps

If you happen to be in one of these underserved and/or disadvantaged communities, now is your chance to make the most of this program before the program funds run out. Here are a few steps that you can take to make the most of this opportunity.

Get educated on the program updates

• The Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act provides key updates to the PPP program including:
• PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs;
• PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures;
• The Program’s eligibility is expanded to include 501(c)(6)s, housing cooperatives, direct marketing organizations, among other types of organizations;
• The PPP provides greater flexibility for seasonal employees;
• Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount; and
• · Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan.

Additionally, you’re generally eligible for a Second Draw PPP Loan if you:

• Previously received a First Draw PPP Loan and will or has used the full amount o for authorized uses;
• Have no more than 300 employees; and
• Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.

I’ve written in more detail on the updates for small businesses here, here and here. Take time to figure out if and what you’re eligible for.

If you have not applied for loan before, look for a community lender including a Community Development Financial Institution, Minority Depository Institution, certified development company or microlender intermediary. In addition to finding them online, the SBA offers a Lender Match program that can match you with smaller lenders who can aid traditionally underserved communities. You can also ask a local SBA district office for assistance.

Do yourself and your lender a favor by reviewing the application for First Draw Loans and Second Draw Loans and getting as prepared as possible.

Don’t delay

Your head start is only a few days, so don’t delay. Take advantage of this opportunity while you have it. Additionally, spread the word to your fellow entrepreneurs.

This effort is just the beginning in the much-needed work to equalize access to business ownership and support. This moment provides an opportunity for us to explore and take significant steps towards fixing a monumental problem.

Everything You Need to Know About the Second Round of Paycheck Protection Program (PPP) Loans

Source: https://tinyurl.com/y6ng2zdm

Guía del importador en Estados Unidos

 

How to grow your business in Houston

State of latino entrepreneurship 2019

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SBA Relief Loans - Covid19

Source: https://tinyurl.com/wmdqkyc

Coronavirus Emergeny Loans for Small Business Guide and Checklist

Source: https://tinyurl.com/wmdqkyc

Hispanic Employment in the United States Sets New Record High

Source: https://tinyurl.com/uuz8h9e

Written by: Carlos Dela Vega (staff@latinpost.com)

(Photo : Pexels)

Hispanics are known as hard working people. They work night and day with few complaints just to provide the basic needs of their families. They are also becoming the main workforce of the United States.

There are millions of Hispanics who currently live and work in the country. Each of them wishing to have a job and hoping for a brighter future. It is one of the main reasons they decided to leave their place of origin and chose to live in the United States.

According to the U.S. Bureau of Labor Latinos (BLS), Hispanics are expected to have the most labor force growth from 2018 to 2028. They are expecting that there will be an increase of 7.4 million to 8.9 million Hispanic people in the workforce compared to other races and ethnicity.

In the recent report of BLS, the employed Hispanics for February this year have increased to 28,531,00 surpassing the employment in January which is estimated to be around 28,397,000. This means that an additional 134,000 Hispanics were added and employed in February.

Moreover, Hispanics' participation in the workplace has also increased. There were 29,852,000 who actively participated in their workplace for February. This is slightly higher compared to the 29, 672,000 in January. An increase of 180,000 Hispanics participated in their workplace.


Even though it is true that there is an increase in Hispanics' employment rate in the United States, the unemployment rate has also increased. According to a published article in CNS News, an increase of 4.4 percent of Hispanics and Latinos were recorded unemployed for February.

It is the highest unemployment rate since the Latino and Hispanic community has a record low of 3.9 percent unemployment rate in September 2019. This means that both the employment and unemployment rate among Hispanics and Latinos in the United States has increased.

The growth of Hispanic employment in the country is expected to increase as the Hispanic owners of small businesses are planning to expand and hire more employees. Hispanics are also opening more small businesses in the country compared to other ethnicities or races.

Meanwhile, President Donald Trump said during the Latino Coalition Legislative Summit that they were able to create more than 3 million jobs for Hispanic-Americans under his administration. He also mentioned that more Hispanics-Americans are now earning and can afford housing in the United States.

The aim of President Donald Trump to Make America Great Again (MAGA) has now clearly manifest. The creation of millions of jobs for the Hispanic-Americans means increasing the household income that will help their family to afford household, education, private healthcare services, and more.

The median household income has also reached its highest level in American history. Trump said that the median household income has surpassed $50,000 a year. This is indeed a good year to start the decade for the Hispanics in the United States.

They will greatly contribute both in the local and national economy of the country and will be the main workforce in the years to come. Hispanic owners of small business are contributing billions of dollars every year and Hispanic employees are helping the economy to work and grow.

Business Permit Office assists businesses in navigating Texas permitting

Source: https://tinyurl.com/sgh3j38

Business Permit Office
The Business Permit Office assists businesses in navigating Texas’ permitting, licensing and regulatory environment and aids in resolving permitting issues that arise. This office offers services to businesses of all sizes and resides within the Economic Development and Tourism Office at the Office of the Governor.

Ombudsman/Liaison

• Assists applicants in the resolution of outstanding issues identified by state agencies, including delays experienced in permit review.
• Aids applicants in obtaining timely and efficient permit review and in resolving issues arising from the review.
• Facilitates contacts between applicants and state agencies responsible for processing and reviewing permit applications.
• Makes recommendations for eliminating, consolidating, simplifying, expediting, or otherwise improving permit procedures affecting business enterprises.

Houston - The economy at a glance (2019)

New report charts economic impact of Hispanic Americans

Source: https://tinyurl.com/y6tq3w5x

The total economic output of Latinos in the United States was $2.3 trillion in 2017, up from $2.1 trillion, according to a new report. Sol Trujillo of Latino Donor Collaborative joins Morning Joe to discuss.

Minority, women business owners in Houston face lack of access to capital, city task force finds

Source: https://tinyurl.com/y5nmov2q

By Chris Mathews – Reporter, Houston Business Journal

Aug 19, 2019, 

In a city where over half of all businesses are minority-owned, minority and women business owners still face a lack of access to capital, according to a city task force.

The city of Houston’s Women- and Minority-Owned Business Task Force, led by city council member Amanda Edwards, presented findings Aug. 16 on how to better increase access to capital and other business resources for women and minority business owners in the Houston area. Among the recommendations was increasing funding to local business service organizations, or BSOs, like SCORE. The task force also recommended funding and “implementation alliance,” which would be responsible for overseeing a network of BSOs and capital providers, developing partnerships, tracking impact and more.

Edwards, who kicked off her election campaign for the U.S. Senate in July, said that there’s a role for everyone to play in overcoming the challenges facing Houston’s diverse community. But the task force acknowledged that many women and minority business owners face difficulty in access to capital from traditional lenders — especially when pursuing loans of less than $100,000. Edwards said that large banks, community banks and community development financial institution (CDFI) lenders alike need to increase loans to women- and minority-owned businesses.

“When everybody is committed to making sure that they’re going to do what they can and what can be possible in order to facilitate increases in lending to women- and minority-owned businesses, then you will see progress made,” Edwards said.

Houston’s opportunity zones were also a topic of discussion in the presentation. The provision of the GOP-backed tax bill that went into effect last year promised to drive trillions of dollars of investment into struggling communities across the country. Edwards said that she welcomes new investments coming into local opportunity zones — of which there are 105 in Harris County alone. But she also wants to see investments being made in existing businesses operating in those areas. The task force has recommended establishing a portal by which investors could fund small businesses already operating within an opportunity zone.

“Opportunity zones are an interesting situation because nothing in the statute requires you to be investing in these zones that benefits the existing residents or existing businesses,” Edwards said.

Houston Mayor Sylvester Turner, who attended the Aug. 16 presentation, lauded the task force for its efforts and agreed that Houston needs to set a comprehensive plan to level the playing field for women and minority business owners.

“I do think it would be very, very beneficial for the city of Houston — and now we get to the implementation phase,” Turner said.

Long-term recommendations include developing small business grants and forgivable loan programs, building out the existing capacity of CDFI lenders and launching a linked deposit program to encourage lending to underserved businesses.

Interactive maps help explain what opportunity zones mean for the Houston area

Source: https://tinyurl.com/y3bok3bh

Author: HEATHER LEIGHTON


Since being added to the tax code in December 2017, opportunity zones have been a complicated development that organizations, investors and community activists are trying to solve.

Fundamentally, an opportunity zone is an economically-distressed community where new investments, under certain conditions, may be eligible for preferential tax treatment, according to the IRS. But because this policy is a new one, there are a lot of mysteries that need to be clarified.

To unpack the complications of the new addition to the tax code, Kinder Institute for Urban Research's Houston Community Data Connections team has created an interactive storymap to break down the goals of Opportunity Zones in metro Houston. The map explains the locations of Houston-area opportunity zones, their demographics, how Opportunity Funds and Opportunity Zones work, and how the tax incentives for investment pays investors back.

"Opportunity zones are a huge topic of conversation but also a big black box right now," said Bill Fulton, director of the Kinder Institute. "Investors everywhere are trying to figure out how to leverage the opportunity, while at the same time community activists are (1) hopeful that opportunity zones will bring new investment that will benefit their community, and (2) fearful that opportunity zone investments will not be sensitive to neighborhood needs and concerns. We hope the opportunity zone storymap will be used by community folks who want to understand the opportunity zone process and investors who want to understand more about neighborhoods."

Within Texas' 145 counties, there have been 628 designated opportunity zones and Harris County has the most in the state at 105. A total of 147 opportunity zones, which are all low-income neighborhoods, sit inside Houston's nine-county area. To qualify as an opportunity zone, areas must be nominated by the state, and that nomination has to be certified by the Secretary of the U.S. Treasury, according to the IRS.

According to the American Community Survey 2013-2017 5-year estimates, the poverty rate in opportunity zones within Harris County (30.8 percent) is much higher than the county average (16.8 percent). Harris County's opportunity zones also have a higher unemployment rate (11 percent) compared to the county average (6.4 percent). Home values, rents, homeownership rates and educational attainment are all lower in opportunity zones than Harris County at large.

"We're hoping the map gives a general sense of how the program works, and where the opportunity zones are in metro Houston," said Jie Wu, director of research management at the Kinder Institute. "The map will also give basic information about the designated neighborhoods. The map has information on demographics, socioeconomic status and housing such as population by age group, poverty rate, unemployment rate, educational attainment, median household income, median home value, median gross rent, homeownership rate, renter’s cost burden and vacancy rate."

The newly-released storymap is the first part of a project tackling the explanation of what opportunity zones mean for Houston. With an estimated release in October, Part II will talk more about the historical demographics of opportunity zones in Houston and the potential neighborhood changes due to an influx of investment in those areas, according to Wu and her team.

PROJECTIONS YEAR OVER YEAR GROWTH FOR HOUSTON

“Houston’s economy will grow 5.4 percent this year and 4.4 percent in ’20, according to the latest forecast by The Perryman Group. As a result, Houston should add $27.4 billion to its gross regional product this year and another $23.9 billion next year. Real personal income, employment, population, and retail sales also show healthy gains. Inflation remains subdued. 

Every sector of Houston’s economy will grow and add jobs, based on the forecast. The largest employment gains are expected to occur in services (35,174), construction (8,017) and manufacturing (5,310). The largest output gains will be in mining, manufacturing and services.” Source: The Perryman Group.

The 2019 Kinder Houston Area survey

COMMUNITY GROWTH: Houston International Trade Development Council