Every year at this time – Hispanic Heritage Month – we collectively celebrate the economic, cultural and social contributions of the Hispanic-Latino community to our nation. We honor the hard work of past generations that have 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, and at Bank of America Corp., we strive to do our part to make an impact by helping build Hispanic-Latino wealth in Rhode Island.
The numbers are clear: The 2020 census revealed that the Hispanic-Latino population in the U.S. rose to 62.1 million, making up 18.7% of the total population and accounting for slightly more than half (51.1%) of the population growth between 2010 and 2020. 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 each year.
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 in minority- and women-led companies through capital investment by mission-focused venture funds. Of the funds we have in our portfolio, 1 in every 4 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 is ensuring that we reflect the diverse communities we serve and do our part to help address societal challenges. In support of this work, Bank of America is delivering on our commitment of $1.25 billion over five years to advance equality and economic opportunity for people of color, including Hispanic-Latinos individuals and communities. In Rhode Island this year alone, that has meant meaningful support to organizations such as Progresso Latino, Amos House, Year Up Inc. and The Genesis Center.
Sustainable homeownership provides a lasting investment for future generations and cycles capital back into the community. The National Association of Hispanic Real Estate Professionals recently released data showing an increase in Latino homeownership, from 47.5% 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. Building Hispanic-Latino home equity increases the amount of capital families can use now or in the future helping build our Rhode Island 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 neighbors is not just a monthlong initiative, it is a long-term, generational investment in America and we are proud to be investing in a stronger economy for Rhode Island now and for years to come.
Yahaira “Jay” Placencia is a senior vice president at Bank of America Corp. in Rhode Island.
