Page 25 - Synchrony US Hispanic Market Playbook

HISPANIC-OWNED BUSINESSES

As is the case with employment, Hispanic-owned businesses are overrepresented in
the hardest hit sectors of the economy during the pandemic, placing them at higher
risk of facing financial trouble. Furthermore, because of lower access to credit, 80% of
Hispanic-owned SMEs did not receive PPP funding which benefitted other
businesses**.

Hispanic businesses are also 2.5 times as likely as White-owned businesses to depend
on informal sources of funding, and thus tend to be smaller and again, at higher risk

during the pandemic***.

 Only 50% of Hispanic-owned businesses had enough cash to cover 2 months’
worth of expenses (vs 7% of businesses owned by White men).

*McKinsey Report: “US Hispanic and Latino lives and livelihoods in the recovery from COVID-19”. September 2020.

**Suzanne Gamboa, “Few Hispanic business owners got coronavirus relief loans, Latino survey finds,” NBC News, April 24, 2020,
nbcnews.com

***McKinsey & Company SMB Survey, May 8–13, 2020

25