Unfortunately, anti-immigrant policies threaten to derail this economic engine. As attacks on immigrants are rising, local economies are weakening, with the fear of immigration raids keeping people home. Many immigrants, including those with legal status, have stopped spending money at local restaurants or stores, choosing instead to save for lawyers, paperwork, and guardianship plans for their children in case they become separated. The destabilizing effects of draconian immigration policies, along with the whiplash of tariffs and harmful cuts to federal small business programs, undermine our nation’s economic future.
The American dream of business ownership isn’t only about individual success — it’s about building strong local economies where opportunity is available to anyone who has the grit to make it. When small businesses thrive, they create jobs, pay taxes that support local schools and infrastructure, and build community wealth. Supporting every emerging business in America is an investment in the nation’s entire economic future.
As leaders of organizations dedicated to Latino economic advancement and entrepreneurship, we see three critical areas where action is needed today more than ever unlock the full potential of Latino and immigrant entrepreneurs:
First, Congress must restore federal baseline support and philanthropy must maintain, or increase, their investments to help small businesses grow, including investing in business coaching resources, such as small business assistance centers and accelerators. With coaching, small business owners can successfully navigate the technical aspects of running a business, such as creating a business plan, accessing complex government procurement opportunities, and managing cash flow. Business coaching can also offer lifelines for small businesses navigating challenges like tariffs or wildfires. Unfortunately, access to business coaching resources will be harmed by proposed funding cuts to the U.S. Small Business Administration as well as rural small business programs run through the U.S. Department of Agriculture. It’s also essential that business coaching is available in each and every community – which runs counter to the recent dismantling of the Minority Business Development Agency, which will shutter many small business resource centers in diverse communities.
Second, philanthropy and lawmakers must make investments in community development financial institutions (CDFIs) so that Latino- and immigrant-owned businesses can access the funding they need to thrive. Latino entrepreneurs are about half as likely as white-owned businesses to receive the full amount of funding they apply for. CDFIs help close this gap by specializing in lending to small businesses too small for traditional bank loans – from food carts to barber shops – and understanding the unique finances and credit histories of immigrants. Latino-led CDFIs are more likely to serve Latino clients but only make up about 15% of California’s CDFIs. The Latino Community Foundation launched the Latino Capital Accelerator initiative to support and grow the capacity of these community-based and trusted institutions. CAMEO Network is a key partner providing said capacity where our collective work essentially supports over 300 Latino businesses annually by coaching and training Latino-led CDFIs.
Finally, it’s also important that policymakers directly address discrimination in lending, to ensure no business owner is turned down because of their name or what they look like. The Federal Reserve found that Latino business owners were denied funding at twice the rate of white business owners. The Consumer Financial Protection Bureau had finalized a rule that would help root out discrimination in lending by requiring measurement of demographics in small business lending, but it will not be enforced by the current administration.
Today, America faces a choice between two economic futures: one that embraces the talents, drive, and contributions of Latino and immigrant entrepreneurs, or one that focuses on an increasingly narrow version of what it means to be American. The economic data is clear – we are stronger with an economy that makes room for all entrepreneurs to pursue their dreams.
Small business ownership has always been at the heart of prosperity in America. Owning a business is one of the leading pathways for building wealth in this country. For immigrants and their children, entrepreneurship represents the promise of America – that hard work, determination, and creativity can lead to a better life. Latino-owned businesses could add $1.1 trillion to the U.S. economy if they had the same average revenue as white-owned businesses. By investing in the success of immigrant and Latino entrepreneurs, we’re supporting more than individual dreams; we’re building a more resilient, dynamic, and prosperous nation for all Americans.
Undermining and threatening economic power in immigrant communities is bad business. When Latino businesses rise, America rises. Our policies and institutions must recognize this fundamental truth.
The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.
