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Minority Lending During Economic Crisis
The COVID-19 pandemic caused unparalleled levels of economic damage to Florida businesses and communities. It tested our resilience at a fundamental level, and many are still recovering. For lenders, particularly those serving minority communities, the challenge was both acute and urgent: to deploy capital that would extend lifelines and ensure survival in tremendous uncertainty.
Benworth Capital rose to the challenge. Between 2020 and 2021, we disbursed $4.5 billion in loans to more than 311,000 small businesses and individuals. We played an important role in shielding entrepreneurs and their employees from the pandemic’s harshest economic consequences.
Our efforts were recently recognized by the Latin Builders Association (LBA)[ https://benworthcapital.com/latin-builders-association-awards-benworth-capital-lender-of-the-year/]. The LBA awarded Benworth Lender of the Year, in part because of the assistance we provided during the pandemic. This is an esteemed honor that recognizes the profound impact lenders can have during crises in supporting and maintaining small businesses.
What’s Behind Crisis Lending
According to the U.S. Department of Commerce, small and minority-owned businesses contribute nearly $2 trillion in revenue to the U.S. economy. By most measures, this level of economic participation translates to a significant engine for economic growth, yet small minority enterprises are also the most vulnerable to economic hardship. This means that in times of crisis, lending becomes paramount to preventing their extinction.
Lending during such times demands agility and innovation. Benworth’s success was not born from sheer luck, but from decades of collective experience. Founded in 2008 during a financial downturn, Benworth previously weathered times of economic downturn, and those unfortunate but formative experiences shaped our robust response to COVID-19. We know how to lend in times of crisis despite the challenges, especially for minority-owned small businesses. Our approach includes:
- Access to Capital: Access to timely and flexible capital can be a game-changer in moments of economic distress. Benworth’s agile capital response frequently equips businesses with the necessary financial support to seize life-changing opportunities — whether buying a home, keeping employees paid, or keeping their businesses operating.
- Proven Track Record: Benworth’s reputation is one of reliably funding high-needs residential housing and fostering economic development across Florida. Our work contributes not only to the local housing supply, but also to job creation and community stabilization. This experience proved invaluable when deploying PPP aid swiftly and effectively during the pandemic, and it continues to prove important as families across the state seek safe, stable housing and financing for their businesses.
- Industry Expertise: Staying attuned to market needs and adapting for them is how we distinguish ourselves. Benworth has integrated market trends into its lending solutions to meet borrowers’ evolving requirements. A good example of this has been our adeptness at merging traditional lending practices with automation and technology to improve efficiency and accuracy in lending practices. This adeptness helped us more easily navigate the COVID-19 landscape, providing critical support where it was most needed.
Lender Support Matters
At its core, lending is about empowering communities and people. It’s a catalyst for growth, resilience, and opportunity. During the pandemic, this support translated into averting business shutdowns, preserving livelihoods, and countless other benefits.
Small businesses are the heartbeats of our communities. They spur economies and offer cultural and social vibrancy. In Miami, people from all over the world rely on our community to be able to establish businesses and thrive despite the challenges of the immigrant experience. If the survival of these businesses hinges on financial assistance during tough times, Benworth will continue to do the work of finding a financial path forward for them.
We believe that when capital goes to families and businesses, communities thrive economically and socially: they hire more staff, invest in innovation, and contribute to a robust local economy. The ripple effects of these benefits create supportive ecosystems. Four years later, our clients are still telling us how integral we were to their survival.
The Future of Lending
The LBA’s recognition as Lender of the Year is more than an accolade for Benworth; it’s about the irreplaceable role of lenders in society. We are not merely lenders; we’re community builders and growth facilitators. And we do it proudly.
We are proud to have supported Florida communities through flexible, innovative, and accessible financial solutions during the COVID-19 crisis. We’re even prouder to represent the vast lending community that made similar contributions around the country. With our collective experiences, one thing is certain: we are not only prepared for the next challenge, but poised to emerge more resilient and united than ever before.
Bernie Navarro is the president of Benworth Capital, the largest private Latino lender in the SBA Paycheck Protection Program (PPP). He is the former Chairman of Miami Dade College.
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