Loan Fund Launched to Help Latino Entrepreneurs

(Photo : flickr.com)

Latinos who aspire to become entrepreneurs, but can't get loans from banks, now have a chance to jumpstart their dream business through a revolving fund launched by LiftFund in partnership with the Bank of America, according to an article by KSAT.com.

For starters, LiftFund and Bank of America will be releasing $100,000 that will benefit four to five businesses. The beneficiaries receive around $20,000, and will undergo the education component under the loan program.

Bank of America seeded the fund which is distributed by LiftFund.

"So that $100,000 (from Bank of America) is going to help four to five small businesses," said Janie Barrera, president and CEO of Liftfund. "As that principal payment comes back into the fund, we'll have enough to lend out to a sixth borrower, a seventh, an eighth, so in perpetuity, that $100,000 is going to be revolving in our community."

Barrerra added, the businesses can range from restaurants, day care providers, painters, lawn care providers, to people in marketing and people who work in technology.

"Part of our underwriting is you've got to let us know how you're going to pay it back," Barrera said.

As of writing, Latinos account for 66% of LiftFund's San Antonio clients.

Among them is Marcela Freeman, a mom of one. Using the fund, she launched Burn It In 30, where she and her team motivate women to get healthier through nutrition, fitness coaching, workouts, and help them gain a sense of community. This business started with her passion for a healthier lifestyle.

"I always knew that working for someone had a cap as far as how far I could go," she said. "To me, it's not just about making money, I care about making an impact."

Four years ago, she quit her job in marketing to pursue her personal fitness training which used to be her side-hustle. She was also inspired to embark on this business when she met a client who shared her insecurities with her body.

"She told me, 'I hate what I see. I'm disgusted with myself.' That really broke my heart," Freeman said. "I knew that I had something that could help her and all the other women that feel like that."

Although Freeman had the technical know-how, she didn't have the financial capability to start her dream business.

With the $35,000 she loaned at LiftFund through the San Antonio Latino Dream Makers Fund, she was able to open her brick-and-mortar space at 15814 University Oak.

For Freeman and her clients, opening her own business has been a game-changer and although it took a great risk to leap into entrepreneurship, Freeman says it's worth it.

"Some mornings, I get up at 3 to be at a 5 a.m. class, but I don't ever feel like, 'Oh, I have to go to work,'" she said.

LiftFund and Bank of America has a fundraising goal of one million US dollars which hopes to help more people like Freeman.

"Latino entrepreneurs are among the fastest-growing segments in the country, and that's especially true here in San Antonio," Jessica Miller, Bank of America's local market president, said in a statement. "We look forward to seeing what participants accomplish for many years."

Entrepreneurs who are interested in applying for a loan or donating can visit LiftFund's website.

In 2012, there were already 3.3 million Latino entrepreneurs in the United States and they are projected to rise in the succeeding years. Moreover, a Harvard Business School study showed that immigrants make great entrepreneurs, with experts citing the "immigrant mindset" as a major asset they bring to companies.