Do I have a right to know why my business loan was denied?

On a business credit application, yes. Under the Equal Credit Opportunity Act and Regulation B, 12 CFR 1002.9, you can request a statement of the specific principal reasons within 60 days. If your gross revenue last fiscal year was $1 million or less the lender must answer within 30 days of your written request. The reasons must be specific — the regulation says pointing to internal standards or policies, or to a failed qualifying score, is insufficient.

What percentage of Latino business owners are told why they were denied?

51%, against 87% of white owners, according to the Stanford Latino Entrepreneurship Initiative.

Does this apply to venture capital?

No. Venture investment is equity, not credit, so ECOA and Regulation B do not apply and no federal law requires an investor to give you a reason.

Under Two Percent — Brown to the Back

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< 2%of all US venture funding in 2025 went to Latino-owned businesses

Set that against the formation numbers everyone quotes: 465,202 Latino-owned employer businesses, up 44% between 2018 and 2023 while white-owned businesses slightly declined, and more than 55% of every net new firm in California and Florida.

Formation is celebrated. Capital is not discussed. Those two facts appear in the same research, in the same year, about the same businesses, and only one of them travels.

A country that believed those formation numbers would be funding them. Under 2% is not a lag. It is a different decision being made at a different desk.

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 law

SBA 504 Loan

Long-term fixed-rate financing for real estate and heavy equipment, through a Certified Development Company.

Reason required by law

SBA Microloan

Up to $50,000 through nonprofit intermediary lenders.

Reason required by law

CDFI Loan

A federally certified mission lender that underwrites differently on purpose.

Reason required by law

Bank Term Loan

A conventional business loan from a bank or credit union, no federal guarantee.

Reason required by law

Business Line of Credit

Revolving working capital — draw it, repay it, draw again.

Reason required by law

Equipment Financing

A loan or lease secured by the machine itself.

Reason required by law

Business Credit Card

Revolving credit in the business name, often personally guaranteed.

Reason required by law

Merchant Cash Advance

Cash today against a slice of tomorrow's sales. Structured as a purchase, not a loan.

Coverage contested

Venture Capital

Equity. You sell part of the company. Not credit, and not covered.

No disclosure duty

By state

Ten states require non-bank financing providers to disclose real terms before you sign. Forty-one do not. Find yours.

Sources. Funding figures: Stanford Graduate School of Business, State of Latino Entrepreneurship, 2023–2025 reporting years, reproduced as published; where two groups are compared both numbers come from the same survey instrument in the same year. Notification rules: Equal Credit Opportunity Act, Regulation B, 12 CFR 1002.9. State commercial financing disclosure laws: American Bar Association state survey and Venable LLP tracking, 2026. County economic type: USDA ERS 2025 County Typology Codes; markets: 2020 Commuting Zones. We publish the source so the arithmetic can be checked rather than trusted.

Less than 2% of all US venture funding goes to Latino-owned businesses.

Where it happens

By state