Building Prosperity: The Economic Impact of Hispanic Entrepreneurs

 

Hispanic Heritage Month gives us an opportunity to celebrate culture and highlight the significant contributions that Hispanic and Latino entrepreneurs make to both our communities and the economy. The rapid growth of Hispanic and Latino-owned businesses — nearly twice the national average — reflects inspiring stories of resilience, risk-taking, and determination to achieve the American Dream.

For Leo Lopez, Senior Vice President and Community Lending Market Executive at Old National Bank, those stories are deeply personal. He came to the United States at 13 years old, leaving behind his homeland and embarking on a journey that forever changed his life and the generations of his family, who would later call America home.  His first jobs were in landscaping and construction, hard work that also became a motivator and a reminder of the sacrifices his parents made for him to pursue greater opportunities in America.

Lopez notes that many immigrants arrive with little to lose, which fuels the drive to work hard and succeed in their new home. He explains that drive is one of the defining characteristics of Hispanic entrepreneurs. "Our community often lives at the intersection of exploitation and opportunity. But the beautiful part is that, in spite of challenges, we focus only on opportunity."

The Power of Hispanic-Owned Businesses

According to Brookings research, Hispanic and Latino-owned businesses are one of the fastest-growing groups of the American economy, expanding at an annual rate of 7.7% between 2017 and 2022. The number of Hispanic or Latino-owned employer businesses jumped 44.4%, including a 14.6% increase in just one year (2021–2022), outpacing the national growth rate of 2.3% during the same period.

This momentum is not just about personal success. Hispanic entrepreneurs reinvest in their neighborhoods and often employ people who look like them, creating a "wealth wheel" that extends opportunity to others. Lopez has seen this firsthand. "We've worked with businesses that started with as little as $10,000 and grew into multimillion-dollar companies," he says. "That sense of possibility is alive in our community. Whether it's a micro-business or a large enterprise, Hispanic entrepreneurs are building prosperity for themselves and for those around them."

The Challenges Hispanic Entrepreneurs Face

Still, systemic barriers remain. The same Brookings research shows that while Hispanic-owned firms are growing in number, they often generate lower average revenues and are concentrated in industries with tighter margins. 

A key factor, Lopez notes, is the wealth gap: Latino households hold about one-fifth the wealth of white households, which translates into lower credit scores, less money available for down payments, and tighter cash flows.

“The truth is, these are good businesses,” Lopez says. “But without intentionality, they don’t always get the chance to prove it.”

A Banking Partner That Listens

Old National's Empowerment Small Business Loan Program was created to help bridge this gap. Supported across the bank — from leadership to credit and marketing — the program includes a lower credit minimum, offers flexible repayment terms, modified collateral requirements, and partners with community development financial institutions when appropriate.

“This isn’t a side project,” Lopez says. “The Empowerment Program looks and feels like every other part of Old National because it is a company-wide commitment.”

A dedicated team of commercial lenders and underwriters ensures the program is delivered consistently and fairly. Since its launch, it has provided more than $55 million to over 160 historically underutilized businesses that might not have otherwise qualified.

One story that sticks with Lopez is of an older business owner in South Chicago who had been turned down repeatedly because of a low credit score. A deeper review revealed a $15,000 charge-off on his credit report tied to a point-of-sale system he had returned years earlier. "He didn't owe that money, but the system had written it off against him," Lopez recalls. "No one else bothered to help him fix it, but we took the time to dig deeper, resolve the issue, and help him secure financing to buy a building. That's the kind of difference intentional banking can make."

Advice for Hispanic Entrepreneurs

What can Hispanic and Latino entrepreneurs do to prepare themselves for growth? With over 30 years of banking experience, Lopez shares essential tips for business owners.

"First, the growth of a company is directly proportional to the growth of the owner," he says. "Entrepreneurs have to stretch, learn, and build emotional intelligence as well as technical skills. Second, personal credit matters — a lot. Taking care of personal finances is one of the best things you can do to prepare for business financing."

He also stresses the importance of relationships. "Ask questions. Find a banker who will take the time to understand you and your business. Once you understand expectations, you can manage your business to meet them, and you'll know how to advocate for yourself if you're not treated fairly."

Lopez encourages entrepreneurs to tap into Hispanic Chambers of Commerce, nonprofit lenders, and cross-community networks. "Some of the most successful Latino businesses I know have built intentional networks not just in the Latino community, but with African American, Asian, and mainstream business communities at large."

Looking Ahead

Despite challenges, Lopez is bullish on the future of Hispanic entrepreneurship. "There's opportunity for growth," he says. "We're seeing new venture funds targeting Latino entrepreneurs and new pathways to scale companies beyond micro-businesses. That's exciting."

For financial institutions, policymakers, and communities, the call is clear: representation and intentionality matter. "When entrepreneurs walk into a bank, it matters if they see someone who looks like them," Lopez says. "At Old National, we've worked hard to make sure they do, because it builds trust and opens doors."

For Lopez, Hispanic Heritage Month is both a celebration and a call to action. "It's a chance to highlight success and to foster more success," he reflects. "But ultimately, we aspire to a place where we are celebrating and engaging every day of the year."

In his own journey, from being an immigrant teenager to now, a banking executive, Lopez embodies the story of possibility he sees in so many of the clients he serves.  With the right support, Hispanic and Latino entrepreneurs are not only building businesses; they are building prosperity for their families, their communities, and the future of our economy.

Old National offers a diverse team of professionals with a deep commitment to meeting their clients where they are and supporting their path to success. If you're ready to capture your American Dream, contact one of our Small Business Relationship Managers, and let's partner for your success. Or, click here to learn more about the Empowerment Small Business Loan Program.