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Every year, during Hispanic Heritage Month, we collectively celebrate the Hispanic-Latino community’s economic, cultural, and social contributions to our nation. We honor the hard work of past generations, which has allowed children and future generations to benefit from more opportunities.
As a strong and diverse community, we come together to help build a future where there are no barriers to success. At Bank of America, we strive to do our part to make an impact by helping build Hispanic-Latino wealth in Arkansas.
The numbers are clear: The 2020 Census revealed that the Hispanic-Latino population in the United States rose to 62.1 million, making up 18.7% of the total U.S. population and accounting for slightly more than half (51.1%) of the population growth between 2010 and 2020. Census data shows that Arkansas’s Hispanic population has grown consistently over the past three decades, increasing from 3.2% in 2000 to 8.5% in 2020, with 256,847 Arkansans identifying as Hispanic.
Hispanic-Latinos now open more small businesses than any other group in the country and are also the fastest-growing demographic of small business owners across the nation. It is not surprising that Hispanic-Latino economic power continues to rise year after year.
When we invest in young people, we invest in future professionals and business leaders who will build Hispanic-Latino wealth and contribute to our state’s economy and culture. This is something we can celebrate together for years to come.
Investing in Business
Investing in Hispanic-Latino wealth means supporting entrepreneurs, so they are set up for success. Early-stage funding is critical for the growth of a new business, especially when Hispanic-Latino entrepreneurs are still faced with gaps in financial literacy and business education, funding and networking opportunities.
According to data from Crunchbase, Latino-founded startups accounted for only 2.1% of venture investments in the U.S. last year. This is unjustifiable.
As part of our commitment to advancing racial equality and economic opportunity, we have dedicated $350 million to minority- and women-led companies through capital investment by mission-focused venture funds. Of the funds we have in our portfolio, one in every four is led by Hispanic-Latino managers, providing capital that will help entrepreneurs and small business owners grow their businesses, create jobs and improve financial stability.
An important element to creating opportunities for Hispanic-Latinos to build wealth, whether as a business owner or an employee, is ensuring that young people recognize higher education as a pathway to achieve success. That means partnering with colleges and universities and investing in job creation, skills-building and support services for students. In Arkansas, we do this by investing in and providing financial education to El Zocalo Immigrant Resource Center, whose mission is “to promote a dignified life for immigrants in Arkansas through connecting families with resources and services and fostering community-wide understanding through education.”
When we invest in young people, we invest in future professionals and business leaders who will build Hispanic-Latino wealth and contribute to our state’s economy and culture. This is something we can celebrate together for years to come.
Investing in Sustainable Homeownership
Sustainable homeownership provides a lasting investment for future generations and cycles capital back into the community. The National Association of Hispanic Real Estate Professionals (NAHREP) recently released data showing an increase in Latino homeownership, from 47.5% percent in 2019 to 48.4% in 2021, the highest level since the mid-2000s. Through the Community Homeownership Commitment, which provides low down payment loans and closing cost grants, families can take their savings and turn them into lasting legacies.
It is a pillar for families to build wealth.
Locally, we partner with Habitat for Humanity of Central Arkansas, a nonprofit organization that helps people build or improve a place they can call home. Building Hispanic-Latino home equity increases the amount of capital families can use now or in the future, helping build our economy.
During the past decade, the rate of Hispanic-Latino economic development has far outpaced rates among non-Hispanics. Supporting and honoring our Hispanic-Latino clients is not just a month-long initiative but a long-term, generational investment in America. We are proud to be investing in a more robust economy for Arkansas now and for years to come.
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Luis Cantú is a senior vice president and regional operations manager for Bank of America Arkansas.