Tim Espinoza owns Mitten Ties Clothing. One year ago, he was selling Michigan-themed clothing from a kiosk inside Woodland Mall. Then came an opportunity to grow the business into a mall storefront, which would require getting loans. The first-generation Hispanic business owner explains it became an uphill battle.
“I was getting denied left and right. Nobody wanted to give me a loan. It didn’t matter my personal credit score, my business credit score. It didn’t matter my tax return; how profitable we were.”
Eric Foster, Co-founder, Chair and Managing Director of Rende Progress Capital says business owners of color are historically confronted with racial bias and that limits access to traditional lending and investments.
“We cannot get to reducing the racial wealth gap and using entrepreneurship as an equalizer if these credible, bona fide businesses are not financed.”
The U.S. Small Business Association reports Hispanic entrepreneurs represent more than 14% of business owners and that number is growing. Foster’s expertise is in financing promising minority-owned businesses. He says the return on investment has been successful.
“Doing the right thing and being inclusive of diverse businesses is an economic and social benefit for the entire West Michigan region.”
Espinoza agrees.
“We all help each other out. From Grand Rapids to Holland to Muskegon, there are a lot of small companies that are up-and-coming and we all promote each other and support each other.”
