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When Ciclaly Lopez and her mother, Rosa Salas, look around their store, Salas Fashion, at 2900 Valmont Road in Boulder, they’re content.
Having come through a rough year, the store that specializes in quinceañera dresses and accessories recently received a $5,000 grant from United Parcel Service Inc. and soon will move to a bigger space nearby. And with Lopez doing well in college, everything seems to be on a glidepath for success.
“I’ve worked at the store ever since I was a little girl. It’s just a little cramped in here now,” she said, looking around at the formal quinceñera dresses and other apparel spilling into the aisles. The new location — just two blocks away — will provide much more room for the 9-year-old retailer’s wares.
Salas Fashion caters to Boulder County’s growing Latino population, which has increased from 14% of the total population in 2010 to 14.6% in 2020, according to the U.S.
Census Bureau. Statewide, Colorado’s Latino population increased to 22%, with the Fort Collins, Colorado Springs and Greeley metro areas showing the biggest percentage gains.
Such population gains demonstrate economic opportunity — and clout. According to a report by The Latino Donor Collaborative prepared by California Lutheran University, the total economic output of U.S. Latinos reached $2.7 trillion in 2019. If U.S. Latinos were an independent country, that would tie it for the seventhlargest economy in the world, matching France.
Latino-owned businesses often outperform non-latino enterprises. According to the annual Biz2credit LatinoOwned Business Study, Latino business owners recorded revenue of $45,435 more on average than non-latino owned enterprises. The report also stated that annual earnings for Latino-based companies are $162,725, which was better than non-latino businesses, which earned $132,753.
Latino businesses also spent
$95,526, a 37% rate of their revenue on operating expenses, which was less than non-latino companies, which spent 38%, representing $80,063 in expenditures.
But even with superior performance metrics, the rate at which Latino businesses are funded stands at 4.5%, which is lower than the rate for non-latino companies, which are funded at a rate of 36.6% according to the Biz2credit report.
The disparity raises questions about how such a sturdy and robust economy keeps coming up short or at least shorter than their counterparts who are not in the same ethnic category for aid and yet consistently keep outpacing these other businesses.
Latino businesses in Boulder County face challenges common to Latino businesses nationwide. In spite of the numbers, many businesses still find it hard to determine where to seek grants and loans.
Although Lopez, 21, has a great deal of business acumen for her age, she and her mother had no idea how to obtain help from banks or other private or governmental entities.
Enter Berenice GarciaTellez, a board member and volunteer at the The Latino Chamber of Boulder County. While canvassing local businesses, Garcia-tellez came upon Salas Fashion and began to share strategies for surviving lackluster sales due to the pandemic.
“We really didn’t know about programs and help available,” Lopez said. “Berenice and the chamber helped us a lot.”
The help proved to be invaluable. Garcia-tellez’ advice culminated in the grant from UPS and a loan under the U.S. Small Business Administration’s Paycheck Protection Program, which Salas used to pay past-due bills and for rent to help make it through the tough times. Challenges with traditional loans
The grant and PPP funds provided valuable financial resources, even as Lopez and Salas were skeptical about a traditional loan. That skepticism reflected concerns about what is happening nationally to Latino businesses trying to obtain funding.
Minority-owned businesses often battle opposition to them receiving targeted help, with lawsuits challenging programs that dedicate funds based on race.
For example, multiple lawsuits were filed over the Restaurant Revitalization Fund, part of President Biden’s American Rescue Plan, with plaintiffs claiming that the SBA was discriminating by prioritizing early funding for minority business owners. In Colorado, a barbershop owner sued over a $4 million state stimulus package for minority-owned businesses.
Supporters say such programs are intended to address the disparity in loans and other assistance received by Latino businesses compared with other races.
According to the Latino Entrepreneurship Initiative’s State of Latino Entrepreneurship 2020 report, prepared by Stanford Business School, Latino businesses were less likely to obtain loans from national banks than white applicants, even when the Latino business reported strong metrics on key loan criteria.
“Sometimes, applicants had challenges with citizenship or obtaining other financial documents needed for certain loans,” Garcia-tellez said.
The Latino Chamber works with local businesses to navigate the process for grants and loans, helping about 100 businesses secure funds.
“A lot of people when applying for grants and loans don’t even know what due diligence is needed,” she said, referring to a variety of documents and filings that are required.
Latino Chamber board member Ricardo Cabrera adds, “A real big one is if they have no Social Security number or a tax ID. That’s a real headache because they still are paying taxes and have no access to programs.”
The Stanford study notes that only one out of four Latino business owners knows their credit score.
Lack of knowledge may explain why some businesses in Boulder County have favored obtaining grants rather than pursuing the traditional loan options from local financial institutions.
“First, there’s a wide range of Hispanic businesses out there,“Cabrera said. “There are highly sophisticated members of the business community, and there are those who are part of the underrepresented part of the community which have other specific needs.”
Social services
While other chambers of commerce focus mostly on the business needs of their members, the Latino Chamber goes several steps further, helping members with a variety of business-consulting services, as well as social programs.
Among members’ needs are finding documents that may be located in another country or interpretation services for legal documents. The chamber also helps with local permitting and zoning, and filings with the Colorado Secretary of State.
On the social side, the chamber organizes vaccination clinics and assists with issues that families might be having at their children’s schools.
Some of these concerns mirror factors that can be assets for Hispanic business owners. According to the Stanford report, Hispanic businesses hold a wide array of traditional values, (including family and a strong desire to keep current on outstanding bills), which translates to business stability.
However, many Latino business owners still hope their children pursue a future rooted in education rather than entrepreneurship.
That also reflects a goal of the Latino Chamber. Although business is one of the fields the Chamber must prioritize, GarciaTellez points to another target.
“We want to see Hispanics represented in more fields where we are underrepresented,” she said.
Garcia-tellez points to underrepresentation in medical fields and other professional fields, as well as municipal jobs. She says she would like to see more fire personnel and police as two of the most in need of representation around the country.
Again, Lopez and her mother reflect this trend.
“Right now, I’m in college at CU Denver. I want to go into the medical field,” Lopez said.
She splits her time at the store and at school while finding time to study whenever she can.
The Latino Chamber also is trying new and innovative ways to reach the Latino business community, including having meetings and seminars over Facebook.
That’s how Salas Fashion first learned of the UPS grant.
“I remember we saw Berenice interviewing another business on Facebook, so my mom asked for her number, and that’s how we started to find what we needed to do for the UPS grant,” Lopez said.
It’s precisely the type of relationship that the Latino Chamber is working to foster.
“We are looking to keep the relationships we’ve built with the business community and partner with them for many years. Hopefully to engage in all aspects of business and whatever help they may need,” Garcia-tellez said.