KEY TAKEAWAYS 

• Most AAPI entrepreneurs lack confidence they could finance unexpected operating expenses or go after growth opportunities including contracts, marketing campaigns, or hiring additional workers.

• The capital needs of many of these entrepreneurs could be met by Community Financial Institutions (e.g. CDFIs and Minority Depository Institutions), but these sources of capital and guidance are not familiar to most AAPI entrepreneurs. 

• AAPI small business owners know, like and trust the Small Business Administration (SBA) more than any other segment of small business owners. The SBA should use its new-found position of trust to connect business owners to private sector resources including Community Financial Institutions, responsible FinTech lenders, and banks that can meet their needs.

BACKGROUND

• The last two years have taken a tremendous toll on AAPI small businesses and challenges persist for many AAPI entrepreneurs. Small businesses that do not have a financial cushion or a source of external financing remain at risk.

• Against this backdrop, we sought to better understand capital needs of small business owners and to assess confidence in their ability to meet those needs. We also wanted to take a pulse on attitudes toward a range of institutions where they might turn for capital.

• National ACE and Reimagine Main Street fielded a national survey from April 7 - April 28, 2022 to generate insights into needs and attitudes of AAPI small business owners compared to their Black-, Hispanic-, Native- and white-owned peer small businesses.