The standard reply to all of this is that the ventures are not fundable on merit. The data answers it directly, and not in the direction the reply assumes.
| Measure | Latino-owned | Comparison |
|---|---|---|
| Median venture deal size when funded | $6M | above US median |
| Profitable in 2024 | 84% | outpacing white-owned |
| Construction sector growth, 2017–2023 | 86% | 2% white-owned |
| Pursuing acquisitions | 38% | 26% white-owned |
| Operating internationally | ~50% | higher median margins |
A filter screening honestly for merit produces survivors clustered at the bar — barely good enough, because everyone above the line got through. These survivors are 43x the sector growth, above-median deal sizes and higher profitability than the firms already funded.
When the people who clear a gate consistently outperform the people inside it, the gate is not measuring quality. It is measuring something else, and rejecting quality on the way.
Where it happens
Ten doors. Eight owe you a specific written reason, one is contested, and one owes you nothing — and that last one is where the money is.
SBA 7(a) Loan
The general-purpose SBA loan. Made by a bank or credit union, guaranteed by the federal government.
Reason required by lawSBA 504 Loan
Long-term fixed-rate financing for real estate and heavy equipment, through a Certified Development Company.
Reason required by lawCDFI Loan
A federally certified mission lender that underwrites differently on purpose.
Reason required by lawBank Term Loan
A conventional business loan from a bank or credit union, no federal guarantee.
Reason required by lawBusiness Line of Credit
Revolving working capital — draw it, repay it, draw again.
Reason required by lawBusiness Credit Card
Revolving credit in the business name, often personally guaranteed.
Reason required by lawMerchant Cash Advance
Cash today against a slice of tomorrow's sales. Structured as a purchase, not a loan.
Coverage contestedVenture Capital
Equity. You sell part of the company. Not credit, and not covered.
No disclosure dutyBy state
Ten states require non-bank financing providers to disclose real terms before you sign. Forty-one do not. Find yours.