Did you know that Latino-owned businesses are among those that will be benefited from the latest $1.9 trillion COVID relief bill approved by the United States Congress?
Yes, in fact, from that total, nearly $15 billion have been earmarked to assist minority-owned companies including those operated by members of the Latino community.
Meanwhile, other forms of financing including SBA-guaranteed loans and ITIN loans like the ones offered by Camino Financial are also alternatives that Latino small business owners can look into if they need funding to keep their companies afloat until the virus situation is behind us.
How are small businesses benefited through this relief bill?
According to the recent bill approved by Congress – known as the American Rescue Plan – a total of $10 billion was approved for states through the State Small Business Credit Initiative, which helps local governments in allocating low-interest loans.
Meanwhile, another $29 billion are being destined for restaurants specifically, as this particular sector of the economy has been among the most battered during the crisis.
Finally, the Small Business Administration (SBA) has received a total of $1.325 billion to strengthen its organizational structure so it can improve its internal procedures to keep supporting small businesses until the health emergency subsides.
It is important to note that any credit obtained through these programs will be forgiven if the company spends at least 60% of the money in covering its payroll, rent, utilities, and mortgage expenditures.
If you are a member of the Latino community and the proud owner of a small business, you can apply for any of these reliefs shortly, or you can also look into other funding opportunities such as those offered by financial technology firms like Camino Financial.
Among these offerings, you’ll find ITIN loans, which are instruments that allow individuals who have not yet received a Social Security Number (SSN) to apply for a loan for their financial needs.
Even though the interest rate applicable to these loans tends to be a bit higher than the one applicable to government-backed financing alternatives, they can be quite useful to individuals or companies that are not eligible for that kind of aid.
How do ITIN loans work?
An Individual Taxpayer Identification Number is issued by the Internal Revenue Service (IRS) to individuals that are required to pay federal taxes regardless of their immigration status.
Although most traditional financial institutions will not grant you a loan unless you provide a Social Security Number (SSN), certain lenders have identified the need for these loans – especially among minority business owners – which has led to the creation of ITIN loans.
ITIN loans work like any other loan except that, during the application process, the borrower will not be asked to provide a Social Security Number (SSN).
Aside from that, ITIN loans pretty much work like any other form of financing, meaning that the borrower will have to pay a monthly installment and the loan will be considered as fully paid once all installments are paid.
The interest rate applicable to these loans varies depending on the candidate’s creditworthiness, while certain providers even offer alternatives to individuals with bad credit.
As you can see, Latino business owners have multiple alternatives to obtain funding for their companies so they can stay afloat during these unprecedented times.
One option is to turn to government-backed aid such as the funding alternatives offered by the Small Business Administration (SBA) or other programs backed by local governments.
On the other hand, if you lack a Social Security Number (SSN) or have not been approved for this kind of aid, ITIN loans can be an alternative for you to obtain the funding you need.