Gabriel Villarreal of Opportunity Fund (a Small Business Borrowers’ Bill of Rights founder) sat down with Clarinda Landeros, Associate Director of Policy, for the National Association for Latino Community Asset Builders (NALCAB). The organization became an Endorser of the Rights just last month (March 2018).
Clarinda Landeros, a seasoned policy expert who spent time working on small business policy with the House Small Business Committee, is passionate about the growth of Latino-owned businesses in the United States, “You can’t have a conversation about asset building and improving economic trajectories in the Latino community without talking entrepreneurship,” she says. “That’s why I joined NALCAB.”
Recognizing a dearth of capital access and wealth building tools within the Latino community nationwide, a group of community and economic development leaders representing rural and urban Latino communities gathered in 2002 to identify ways to address these challenges. This group would become NALCAB, a coalition of more than 100 community-based organizations with a mission to build assets for Latino families, communities and organizations, and advance economic mobility for low and moderate-income people.
With small businesses accounting for two thirds of new jobs created in today’s economy, the expansion of Latino-owned small businesses is a major economic force. Recognizing this, one of NALCAB’s many initiatives is to support the development of Latino entrepreneurship, “Entrepreneurship is a way to take a hold of the American Dream,” says Clarinda. “Small business ownership spurs innovation and creates jobs. Latinos are starting businesses in great numbers, this is good for the economy and good for asset building within the Latino community.”
NALCAB supports small business development by offering support grants to its members. Some of these services include CDFI certification and loan fund capitalization, the technical assistance and lending best practices, as well as the development of key performance indicators.
“Access to capital and technical assistance are two of the biggest challenges facing Latino entrepreneurs,” says Clarinda, “How to write a business plan, accessing capital, compliance costs - these are just some of the challenges startups face in getting their business off the ground .” Cultural barriers like language can also scale up challenges for new business owners, “Culturally relevant and sensitive technical assistance, materials offered in Spanish… It’s getting better but the challenge is still there.”
These challenges are why NALCAB endorsed the Small Business Borrowers’ Bill of Rights, “When you look at the incredible start-up and growth numbers of Latino-owned small businesses and compare them to the lending numbers, you see that there is still a huge gap between Latino-owned businesses and their counterparts,” says Clarinda. This gap in capital access from mainstream financial institutions, she notes, can cause these business owners to seek financing from high-cost, short-term lenders, which can threaten the businesses’ long-term viability.
“Giving our community a guideline, something that shows people how to recognize responsible lending products, can make all of the difference between a business taking out an unaffordable loan and a responsible loan that helps them grow,” says Clarinda. For a new small business, that distinction is vitally important.
We thank NALCAB for taking the time to talk with us about their business development work and the importance of the Small Business Borrowers’ Bill of Rights for small business owners
If you are interested in learning more about the Small Business Borrowers’ Bill of Rights please email info@borrowersbillofrights.org.
If your organization is currently a signatory or endorser of the Small Business Borrowers’ Bill of Rights and would like to be featured in our blog, please contact Gabriel at Gabriel@opportunityfund.org.
Clarinda Landeros, a seasoned policy expert who spent time working on small business policy with the House Small Business Committee, is passionate about the growth of Latino-owned businesses in the United States, “You can’t have a conversation about asset building and improving economic trajectories in the Latino community without talking entrepreneurship,” she says. “That’s why I joined NALCAB.”
Recognizing a dearth of capital access and wealth building tools within the Latino community nationwide, a group of community and economic development leaders representing rural and urban Latino communities gathered in 2002 to identify ways to address these challenges. This group would become NALCAB, a coalition of more than 100 community-based organizations with a mission to build assets for Latino families, communities and organizations, and advance economic mobility for low and moderate-income people.
With small businesses accounting for two thirds of new jobs created in today’s economy, the expansion of Latino-owned small businesses is a major economic force. Recognizing this, one of NALCAB’s many initiatives is to support the development of Latino entrepreneurship, “Entrepreneurship is a way to take a hold of the American Dream,” says Clarinda. “Small business ownership spurs innovation and creates jobs. Latinos are starting businesses in great numbers, this is good for the economy and good for asset building within the Latino community.”
NALCAB supports small business development by offering support grants to its members. Some of these services include CDFI certification and loan fund capitalization, the technical assistance and lending best practices, as well as the development of key performance indicators.
“Access to capital and technical assistance are two of the biggest challenges facing Latino entrepreneurs,” says Clarinda, “How to write a business plan, accessing capital, compliance costs - these are just some of the challenges startups face in getting their business off the ground .” Cultural barriers like language can also scale up challenges for new business owners, “Culturally relevant and sensitive technical assistance, materials offered in Spanish… It’s getting better but the challenge is still there.”
These challenges are why NALCAB endorsed the Small Business Borrowers’ Bill of Rights, “When you look at the incredible start-up and growth numbers of Latino-owned small businesses and compare them to the lending numbers, you see that there is still a huge gap between Latino-owned businesses and their counterparts,” says Clarinda. This gap in capital access from mainstream financial institutions, she notes, can cause these business owners to seek financing from high-cost, short-term lenders, which can threaten the businesses’ long-term viability.
“Giving our community a guideline, something that shows people how to recognize responsible lending products, can make all of the difference between a business taking out an unaffordable loan and a responsible loan that helps them grow,” says Clarinda. For a new small business, that distinction is vitally important.
We thank NALCAB for taking the time to talk with us about their business development work and the importance of the Small Business Borrowers’ Bill of Rights for small business owners
If you are interested in learning more about the Small Business Borrowers’ Bill of Rights please email info@borrowersbillofrights.org.
If your organization is currently a signatory or endorser of the Small Business Borrowers’ Bill of Rights and would like to be featured in our blog, please contact Gabriel at Gabriel@opportunityfund.org.
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