USHCC 2020-2021 Policy Platform by USHispanicChamber

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A letter from our President & CEO Ramiro A. Cavazos The United States Hispanic Chamber of Commerce (USHCC) was founded on the notion that the success of the American economy is inextricably linked to the success of the Hispanic business community. When Americans work together to create prosperity for our Hispanic Entrepreneurs and our workforce, the entire country benefits economically. Our board of directors and team are proud to represent the innovation and entrepreneurial spirit of our small business community nationwide. The purpose of the 2020-2021 Policy Platform is to concisely summarize the positions of the USHCC on the most important policies that impact Hispanic Business Enterprises (HBEs) and the broader Hispanic community.

Ramiro A. Cavazos

President & CEO USHCC

In the United States, there are 4.7 million Hispanic-owned businesses that, together, contribute over $800 billion dollars to the U.S. economy each year.1 Hispanic people are starting businesses at three times the rate of the general population, and half of all new Hispanic entrepreneurs are women.2 Overall, Hispanics power the economy with a $2.3 trillion gross domestic product (GDP) and comprise 18 percent of the American workforce.3 4 Despite the economic contributions of the Hispanic community, Hispanic Business Enterprises (HBEs) face undue

Welcome Letter

barriers that create challenges to starting, running, and scaling a business. If Hispanic-owned businesses were given the opportunity to scale at the same level as nonminority-owned businesses, there would be an additional $1.47 trillion contributed to the American economy, larger than the annual gross domestic product (GDP) of countries like Australia, Spain, Mexico, and Saudi Arabia.5 The USHCC is committed to closing the opportunity gap for the betterment of the American economy by expanding access to capital, providing small business assistance, creating procurement matchmaking opportunities, leading innovating trainings, growing our network of more than 250 chambers, and advocating for more resources. On behalf of the Hispanic business community, we look forward to working with our elected leaders in government to build a stronger minority business ecosystem and further evolve Americaâ&#x20AC;&#x2122;s economic leadership in the 21st century. Respectfully,

Ramiro A. Cavazos President & CEO United States Hispanic Chamber of Commerce

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USHCC Board of Directors

OFFICERS

Carmen Castillo

Alice Rodriguez

Betty Manetta

Raul F. Salinas

Victor Arias

Carlos A. Becerra

Ernie Câ&#x20AC;&#x2122;deBaca

Jessica Cavazos

Yuri Cunza

Reuben Franco

Chairwoman President & CEO SDI International Corp.

Ramiro A. Cavazos

President & CEO United States Hispanic Chamber of Commerce

Board Secretary President & CEO Argent Associates

Chair-Elect Consumer Bank Senior Advisor Managing Director JPMorgan Chase & Co.

General Counsel Managing Shareholder AlvaradoSmith

BOARD OF DIRECTORS

Managing Director & Partner in Charge DFW Office Diversified Search Group

President & CEO Wisconsin Latino Chamber of Commerce

Group Manager Customer Experience Strategy Toyota Motor North America

President & CEO Nashville Area Hispanic Chamber of Commerce

President & CEO Albuquerque Hispano Chamber of Commerce

President & CEO Orange County Hispanic Chamber of Commerce

Board of Directors

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USHCC Board of Directors Regina Heyward

Juan Carlos Liscano

Senior Vice President & Head of Supplier Diversity Wells Fargo & Company

Monika Mantilla

Vice President Miami, Caribbean & Latin America Operations American Airlines

Joe Mella

Vice President Finance Division Goldman Sachs

Mayra Pineda

Small Business Community Capital

Jackie Puente

Nelson Reyneri

Christine Rice

Jennifer Rodriguez

Rosa Santana

Managing Partner President & CEO Altura Capital

Senior Vice President Sales & External Affairs Liberty Power

Executive Vice President VisionIT

In Memoriam

Executive Director External Affairs Comcast Corporation

President & CEO Hispanic Chamber of Commerce of Louisiana

President & CEO Greater Philadelphia Hispanic Chamber of Commerce

Board of Directors

Founder & CEO Santana Group

Luis Alcantara

Group Vice President Vehicle Production Engineering Toyota Motor North America

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USHCC Professional Team Richard Garcia

Felipe Ugalde

Brianna Dimas

C. LeRoy Cavazos-Reyna

Fernando Meersohn

Laura Sosa

Vanessa Mondragon

Santiago Salas Oliva

Chief of Staff

Vice President Programs & Communications

Manager Programs & Events

Vice President Governmental & International Affairs

Associate Finance & Administration

Managing Director Financial Planning & Analysis

Senior Manager Corporate Relations

Fellow Government & International Affairs

Staff

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Table of Contents 07

The Mission of the United States Hispanic Chamber of Commerce

An Overview of the USHCC’s Policy Focus Areas

Recent Highlights

COVID-19: Ensuring Hispanicowned businesses recover from the pandemic

= Call to action

Racial Equity: Supporting Equity for Underrepresented Communities

Equality: Supporting the rights of the LGBT Community

Immigration: Supporting the United States Supreme Court’s Ruling on DACA

U.S. 2020 Census: Ensuring Hispanics are Accurately Counted

2019 Accomplishments: Advocating for Small Businesses in the USMCA

2019 Accomplishments: Advocating for Opportunity Zones

USHCC Supports Helping Hispanic Business Enterprises Leverage Federal Resources to Grow Their Companies

USHCC Supports Improving the Affordability of Healthcare for Small Business Owners

USHCC Supports Investing in America’s Infrastructure

USHCC Supports Investing in Puerto Rico’s Economic Development

The USHCC Recognizes the Vital Importance of HighSkilled Immigration to America’s Economic Recovery post COVID-19.

USHCC Supports Advancing the Health of the Hispanic Workforce

USHCC Supports Prioritizing Immigration as an Economic Imperative

USHCC Supports Building a Compassionate and Economical Approach to Border Security Using Tech

USHCC Supports Continuing Deferred Action for Childhood Arrivals (DACA) and Temporary Protected Status (TPS)

USHCC Supports Providing Access to Affordable Housing

The USHCC Supports Investments Geared Toward the Economic Recovery of Hispanic-Owned Businesses Impacted by COVID-19

Focus Area #3: Integrating Hispanic Business Enterprises in a Prospering and Sustainable Global Economy

Focus Area #2: Supporting the Broader US Hispanic Community

USHCC Supports Emphasizing STEM Education and Career & Technical Education

USHCC Supports Helping Hispanic Business Enterprises Access International Markets

2019 Accomplishments: Removing Tariffs and Barriers to Trade

USHCC Supports Ensuring Access to Excellent Education at Every Level

USHCC Supports Strengthening International Trade Relations that Benefit Hispanic Business Enterprises

Focus Area #1: Improving Outcomes for Hispanic Business Enterprises (HBEs)

USHCC Supports Building a Diverse and Inclusive Workforce

USHCC Supports Developing Secure Technological Infrastructure

USHCC Supports Privacy in The Data Economy

USHCC Supports Equitable Access to Capital

USHCC Supports Increasing Access to Affordable and Quality Healthcare

USHCC Supports Developing Communications Infrastructure

USHCC Supports Increasing Access to Capital for Hispanic and Other Minority-Owned Businesses

USHCC Supports Improving Energy Infrastructure

USHCC Supports Policies that Promote Environmental Sustainability

Table of Contents

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The Mission of the United States Hispanic Chamber of Commerce

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4.7 million Hispanic-owned businesses $800 Billion in economic impact 61 million Latinos live in U.S.

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The Mission of the United States Hispanic Chamber of Commerce (USHCC) is to foster economic development and to create sustainable prosperity for the benefit of American society. The United States Hispanic Chamber of Commerce actively promotes the economic growth, development, and interests of more than 4.7 million Hispanic-owned businesses, that combined, contribute over $800 billion to the American economy every year. It advocates on behalf of its network of more than 250 local chambers and business associations nationwide, and also partners with more than 260 major American corporations.

Mission

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An Overview of the USHCC’s Policy Focus Areas Our advocacy is driven by three main goals: 1. Grow business opportunities for Hispanic Business Enterprises (HBEs)

2. Support the broader US Hispanic community

3. Integrate Hispanic businesses into the global economy

To achieve these goals, the USHCC researches and develops policy positions to support Hispanic business in the areas of: • Access, Management, and Control of Capital

• Energy and Sustainability

• Puerto Rico

• COVID-19: Economic Relief and Reopening Our Economy

• Healthcare

• Tax Reform and Incentives

• Housing

• Technology, Data, Privacy, and Cybersecurity

• Education and Workforce Development

• Immigration • Infrastructure

• 2020 U.S. Census

• International Trade and Commerce

First, we advocate at the federal level to improve the conditions for Hispanic Business Enterprises (HBEs) to thrive within the United States. We support the following policies: • Ensure Equitable Access to Capital • Increase Access to a Range of Diverse Leaders • Help Hispanic Business Owners Leverage Federal Resources • Improve the Affordability of Healthcare for Small Business Owners

• Renovate Physical Infrastructure in the United States • Support Economic Development in Puerto Rico

• Federal Investments Aimed at the Economic Recovery of Hispanicowned Businesses Impacted by COVID-19

• Recognize the Vital Importance of High-Skilled Immigration to America’s Economic Recovery post COVID-19

• Build a Diverse and Inclusive Workforce

• Promote Career & Technical Education for Latinas and Latinos

• Increase Access to Affordable and Quality Healthcare

• Investing in the Next Generation of Latina and Latino Leaders by Ensuring Access to Excellent Education at Every Level

• Build a Compassionate and Economical Approach to Immigration Reform and Border Security

Overview

• Help Hispanic Businesses Access International Markets • Support for Small Businesses to Leverage International Trade Relations • Protection for Innovation and Intellectual Property • Develop Secure Technological Infrastructure • Privacy in the Data Economy

Second, we advocate for policies that generate prosperity and opportunity for the U.S. Hispanic community, which strongly correlate with improved economic outcomes of Hispanic businesses. We support the following policies: • Emphasize STEM Education

We advocate for policies that help Hispanic Businesses integrate and contribute to a prosperous and sustainable global economy. We support the following policies:

• Protection and a permanent solution for Deferred Action for Childhood Arrivals (DACA) and Temporary Protected Status (TPS) Recipients • Access to Affordable Housing

• Clean Energy and Sustainability

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Recent Advocacy Accomplishments The USHCC has been actively advocating for policies that support our mission across the private, public, and nonprofit sectors. Some examples of recent legislative victories and initiatives are detailed below.

COVID-19: Ensuring Hispanic-owned businesses recover from the pandemic Our work at the US Hispanic Chamber of Commerce has never been more important. As the nation undergoes one of the most difficult economic times in recent history, our work to assist the over 4.7 million Hispanic-owned businesses recover economically is vital to the American economy. With our presence in Washington D.C. and network of local Hispanic chambers of commerce, we are fighting hard to advocate for COVID funding to help Hispanic and minority-owned small businesses recover economically. While we continue to advocate on all the policy stances laid out in this document, we are responding to COVID-10 and helping Hispanic-owned businesses in several ways.

The USHCC’s advocacy in Congress resulted in Congressional leaders approving $441 billion out of $500 billion, this equals 88% of the requested funds approved for stimulus that can impact Hispanic and Minority-owned small businesses. We must continue to work with Federal Agencies and Financial Institutions to track this funding and make sure our community gets our fair share to economically recover.

More info on the USHCC’s specific actions be found in Section 1.

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Our work to assist the over 4.7 million Hispanic-owned businesses recover economically is vital to the American economy.

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Recent Highlights

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Racial Equity: Supporting Equity for Underrepresented Communities The United States Hispanic Chamber of Commerce (USHCC) Board of Directors stands in solidarity with Black Americans and people of all ethnicities, genders, and orientations to oppose all forms of racism. Today, we call for justice and reform through policy and action to meaningfully address social and racial injustice in America in every community. The USHCC does not tolerate any forms of racism or injustice. We understand the outpouring of peaceful protests and nonviolent gatherings happening around the country and the world because of the needless deaths of George Floyd in Minnesota, Breonna Taylor in Kentucky, Ahmaud Arbery in Georgia, and the countless others. It is unacceptable that far too many Americans live in constant fear of losing their lives in our country, which strives to stand as the beacon of freedom and justice. This unending violence should rattle us all to our core as it also should for Asian-Americans harassed and targeted with violence due to misinformation about COVID-19, Jewish-American victims of Anti-Semitic hate crimes murdered recently in a synagogue in Pittsburgh, HispanicAmericans senselessly murdered in an act of racial violence in El Paso, and other explicit examples throughout the country.

We must come together now as communities of color, as Americans, and as new allies, neighbors, friends, business leaders, and decision makers to stop racism and discrimination and promote reforms in education, housing, job creation and economic opportunity. The Hispanic business community puts out a call to build on the legacy left behind by the senseless killing of George Floyd, and countless others, through meaningful action to end racial inequalities in all their unlawful and inequitable manifestations.

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The USHCC does not tolerate any forms of racism or injustice.

Equality: Supporting the rights of the LGBT Community

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The United States Hispanic Chamber of Commerce (USHCC) proudly supports and applauds the decision by the U.S. Supreme Court that the language of the Civil Rights Act of 1964, which prohibits sex discrimination, applies to discrimination based on sexual orientation and gender identity. Our mission to foster Hispanic economic development and to create sustainable prosperity for the benefit of American society – includes advocacy and a strong commitment towards opportunity, equity, and inclusivity. Until this decision, it was legal in more than half of all U.S. states to fire workers for being gay, bisexual, or transgender. This vastly consequential decision permanently extends workplace protections to millions of people across the nation. Equity is the catalyst to protect all Americans from discrimination. We know that many of our own members have experienced discrimination in many forms and are proud that this ruling will protect many Americans. We stand against any act of discrimination whatsoever and support our LGBT community, which includes many Hispanic-Americans.

Discrimination in any form is bad for business. Equity creates wealth in all communities and lifts the overall economy. We will rise by lifting others.

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Immigration: Supporting the United States Supreme Court’s Ruling on DACA The USHCC applauds and celebrates the historic decision by the United States Supreme Court to block the Federal Administration’s attempt to end Deferred Action for Childhood Arrivals (DACA), a program that protects hundreds of thousands of immigrants brought to the United States as children from deportation and allows them to continue working. For more than 40 years, the United States Hispanic Chamber of Commerce Board of Directors has been a catalyst in serving as a resource and advocate for the Hispanic business community. Because of this longstanding legacy, we understand the importance of a strong immigration system and what immigrants represent as part of our society and economy.

Currently, 91% of all DACA recipients are employed, in school, or serving in the U.S. military.

Many Dreamers are entrepreneurs and many of them are also frontline workers providing essential services during this global pandemic.

One out every ten jobs in America is a job created by an immigrant-owned business. Today, 43% of all Fortune 500 companies is a business founded by an immigrant or the son or daughter of an immigrant. The USHCC will continue to work with individuals, on both sides of the aisle, who understand that immigration reform is an economic imperative. It is now up to Congress to unite and pass meaningful legislation that will create a pathway to U.S. citizenship for Dreamers.

U.S. 2020 Census: Ensuring Hispanics are Accurately Counted The 2020 Census is one of the most important events of the year – more than $1.5 trillion dollars in the federal funding is allocated based on the census data.7 The relevance of this population count transcends the possible modification of Apportionments and Redistricting. The Census will determine the electoral map for the next decade. It will also be used to evaluate the amount of funding that state governments and local communities receive from the federal government for the next 10 years. All the information collected in this year’s census will be the base from which policy makers and other government officials make decisions and allocate critical resources. Hispanics, along with other underrepresented groups, must be correctly identified by the Census to avoid being undermined by any state or federal agenda.

The USHCC successfully advocated to remove the proposed citizenship question on the 2020 Census that would have undercounted close to 6.5 million Hispanics in the United States.6

With Hispanics now the nation’s second largest population group and one out of every six Americans, full and accurate data about the Hispanic community is critical for our country’s economic, social, and civic well-being. The original proposed questionnaire for this year’s Census included asking every person about their legal status in the United States. This posed a great problem for immigrant communities who could be excluded from the census as they would fear being targeted after their response. To guarantee the accurate count of Hispanic communities, the USHCC effectively advocated to modify the Census and remove this section to assure that all immigrant workers participated in this critical process.

Recent Highlights

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2019 Accomplishments: Advocating for Small Businesses in the USMCA The combined GDP of the United States, Mexico, and Canada is over USD $24 trillion, making the North American economy the largest in the world.8 The United States-Mexico-Canada Agreement (USMCA) promises to strengthen economic ties in North America and boost the economy of the region. In particular, the focus to increase trade and investment opportunities for minority-owned small and medium-sized enterprises (SMEs) allows the firms to access international markets and supply chains.

The USHCC advocated for provisions in the USMCA that strengthened the ability for minority-owned businesses to access international markets.

The USMCA allows SMEs to export more goods without facing burdensome fees.9 In addition, Chapter 25 of the agreement establishes a ‘Committee on SME Issues,’ designed to help SMEs take advantage of commercial opportunities resulting from the USMCA.10 This chapter contains a provision specifically for minority business owners. The USHCC recognizes this initiative as a trilateral commitment to support small and mid-sized Hispanic businesses in the United States. Moreover, the Chamber will continue to support regulatory and legislative measures that facilitate international trade with both borders such as the capital increase of the North American Development bank.

2019 Accomplishments: Advocating for Opportunity Zones The USHCC supported the provision in the Tax Cuts and Jobs Act of 2017 that included a 20 percent pass-through deduction for small businesses.11 This provision of the new tax code increases cash flow for small business owners, helping businesses to scale. The USHCC aims to work with the federal government to help Hispanic business owners comply with the new tax code and take advantage of the small business deduction.

The USHCC supported provisions in the Tax Cuts and Jobs Act of 2017 that can generate up to $6 trillion dollars in investments in underserved communities and lower the tax rates for small businesses.

In addition, the USHCC is strongly supports of the opportunity zones created by the Tax Cuts and Jobs Act. The zones create tax incentives to encourage investment in businesses and real estate located in distressed communities. There are more than $6 trillion dollars in potential investments in underserved communities as a result of the opportunity zones.12 We encourage investors to take advantage of designated opportunity zones and invest in distressed areas, all while remaining committed to the needs of local communities. While we support provisions of the bill, we also encourage policymakers to consider the detriments of the Tax Cuts and Jobs Acts and take appropriate action to reign in the rising deficit and ensure that tax burdens are lifted for families with lower- and middle-class incomes.

2019 Accomplishments: Removing Tariffs and Barriers to Trade The USHCC joined private and public sector leaders to remove tariffs and barriers to trade on aluminum.

Recent Highlights

In June 2018, President Trump ordered the creation of a 10% tariff on aluminum for the European Union, Canada, and Mexico as part of his “America First” economic policy. This tariff caused the prices to skyrocket, creating unnecessary costs for every industry that uses aluminum on their products or manufacturing processes. The USHCC immediately addressed this situation and, with the help of the collective efforts of the rest of the industry, the tariff was lifted. One year later, the largest suppliers of aluminum to the U.S. market were liberated from this 10% duty.

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Improving Outcomes for Hispanic Business Enterprises (HBEs)

Focus Area #1:

USHCC Supports Equitable Access to Capital Overview Accessing capital is one of the greatest challenges faced by business owners, especially owners of small and mid-sized firms (SMEs). Ninety percent of small business owners in the United States believe that the inability to access capital hinders their success.13 Big banks approve only 2 out of 10 loan requests from small business owners, and unregulated alternative lenders sometimes engage in predatory practices.14 Challenges to capital access are exacerbated for minority business owners. According to the Minority Business Development Agency (MBDA), minority-owned businesses are less likely to receive loans than non-minority-owned businesses with the same credentials.15 Minority-owned firms that do acquire loans receive 57 percent less than non-minority businesses.16 It is imperative that every capital provider commit to equitable debt and equity investment for all businesses and entrepreneurs, regardless of race, gender, sexual orientation, or disability. The USHCC seeks to promote both debt and equity capital solutions for Hispanic business enterprises (HBEs).

How equitable access to capital aligns with the USHCC mission and values. The USHCC is committed to guarantee that financial institutions invest fairly and without prejudice to support all minority communities. Furthermore, the USHCC strongly believes that positive reform can help financial institutions engage in more lucrative investments while still following the CRA requirements. With measures such as allowing credit for loans given to entrepreneurs in newly created Opportunity Zones, banks would have diverse options to invest and tremendously benefit Hispanic-owned businesses. Equitable access to capital is a critical part of the USHCCâ&#x20AC;&#x2122;s mission.

Call to Action The current Administration has proposed a modification to the Community Reinvestment Act (CRA) that threatens to withdraw investments made to minority populations. The CRA has the objective of guaranteeing that banks provide mortgages, smallbusiness loans and other services in areas where they operate. The proposed modification pretends to

create a road, through technicalities, for banks to avoid lending to these communities while they still benefit from CRA credit. Additionally, providing technical assistance improves the ability for Hispanic-owned businesses to raise capital or seek debt financing. For this reason, the USHCC contemplates the expansion of Small Minority Business (SMB) assistance programs as one of the fundamental factors to ensure the maximization of government resources.

Focus Area 1

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USHCC Supports Increasing Access to Capital for Hispanic and Other Minority-Owned Businesses Overview For most Hispanic-owned businesses, accessing capital is as complicated today as it was 50 years ago.17 While there are various lenders including large and small banks, corporations, pension funds, insurance companies, credit unions, venture capital funds, angel investors, and family offices, minority-owned businesses still have less access to capital than anglo-owned businesses. According to the Minority Business Development Agency, the average loan amount for firms with more than $500,000 in gross receipts was $149,000, while the average for nonminority firms was more than twice that amount at $310,000.18

How increasing access to capital aligns with the USHCC mission and values. Minority-owned firms are less likely to receive loans than nonminority firms and, in fact, are more likely not to apply for loans due to rejection fears, according to findings from the U.S. Department of Commerce Minority Business Development Agency.19 If they do get loans, minority-owned firms are more likely to receive lower loan amounts than nonminority firms and pay higher interest rates on business loans.18 Increasing access to capital, at reasonable interest rates, is necessary for the launch and expansion of businesses in the Hispanic community.

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Call to Action

Minority-owned firms are less likely to receive loans than nonminority firms.

Focus Area 1

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We encourage all capital providers to boldly support the growth of Hispanic businesses that are part of their supply chains, communities, and business networks. The USHCC stands ready to work with all institutions to ensure that capital and opportunities are flowing to Hispanic business owners. Additionally, we support the development of more minority-owned and minority-focused financial institutions.

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USHCC Supports Helping Hispanic Business Enterprises Leverage Federal Resources to Grow Their Companies Overview We encourage Hispanic business owners to participate in government and publicprivate initiatives that facilitate both capital access and effective management of capital. For example, the U.S. Small Business Administration (SBA), U.S. Department of the Treasury, and the Minority Business Development Agency (MBDA) have a variety of programs that can be leveraged by business owners. Through the SBA, small businesses can connect with reliable lenders, receive an â&#x20AC;&#x153;SBA credit scoreâ&#x20AC;? that can help them qualify for loans, and take advantage of streamlined processing for loans under $350,000.20 The SBA also has regional Small Business Development Centers, some of which are housed in Hispanic chambers of commerce across the country. For example, through the small business development center in the Orange County Hispanic Chamber of Commerce, business owners can access technical assistance and find funding for their businesses. The Treasury Department provides access to microloans and flexible financing for small businesses. Through the Community Development and Financial Institutions Fund (CDFI Fund), the Treasury provides loans, financial services, and technical assistance to underserved populations.

How federal resources for Hispanic Business Enterprises align with the USHCC mission and values. With small business loans for Hispanics, as well as other economic opportunities, these business owners are getting more tools they need to run their businesses. Governmental and other resources that specifically support Hispanics and offer small business loans and grants for Hispanics have contributed to the growth of businesses launched by Hispanic entrepreneurs.

Call to Action The USHCC seeks to address the underutilization of these programs by Hispanic business owners. We encourage federal agencies to develop initiatives to increase Hispanic business participation, such as Spanish-language resources and outreach to our nationwide network of local Hispanic chambers.

Focus Area 1

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USHCC Supports Improving the Affordability of Healthcare for Small Business Owners Overview It is essential that Hispanic business owners have access to affordable and quality healthcare. According to the Small Business Majority, more than 5.7 million small business employees or self-employed entrepreneurs are enrolled in federal healthcare under the ACA.21 Two million of the entrepreneurs that gained coverage were insured due to the Medicaid expansion.22 The ACA also helped small business owners provide insurance to employees through both the small business healthcare tax credit (for firms with under 25 employees) and SHOP, the Small Business Health Options Program (for firms with 25-50 employees). It is imperative that these programs are continued and adequately funded. Without insurance, unexpected medical costs can shut down a small business.

How affordable healthcare aligns with the USHCC mission and values. The cost of healthcare is often excessively burdensome for small business owners, and many small employer firms are unable to provide healthcare for employees, forcing them to hire part-time instead of full-time workers. In a recent survey conducted by the National Small Business Association, 40 percent of small business owners stated that their greatest challenge was paying for healthcare.23 The cost burden of healthcare is even greater for minority business owners, who are less likely to own scaled businesses. Rising medical costs coupled with poor social determinants of health are often devastating to Hispanic Business Enterprises.

Call to Action It is essential that Hispanic business owners have access to affordable and quality healthcare. According to the Small Business Majority, more than 5.7 million small business employees or self-employed entrepreneurs are enrolled in federal healthcare under the ACA.24 Two million of the entrepreneurs that gained coverage

Focus Area 1

were insured due to the Medicaid expansion.25 The ACA also helped small business owners provide insurance to employees through both the small business healthcare tax credit (for firms with under 25 employees) and SHOP, the Small Business Health Options Program (for firms with 2550 employees). It is imperative that these programs are continued and adequately funded. Without insurance, unexpected medical costs can shut down a small business.

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USHCC Supports Investing in America’s Infrastructure Overview The USHCC supports infrastructure development and renovation across the nation. Today, the meaning of the word “infrastructure” has expanded far beyond bridges and roads. American infrastructure ranges from public transit systems to broadband internet connectivity to wind turbines. Across the United States, roads, bridges, transit systems, and electrical grids are in a state of disrepair, negatively impacting business owners. When power and power transit systems run inefficiently, businesses suffer. The USHCC encourages infrastructure development through both federal initiatives and public-private partnerships. For example, the North American Development Bank (NADB), created by NAFTA and continued under the USMCA, finances sustainable infrastructure that enhances the quality of life for people living on all sides of the U.S.-Mexico-Canada borders. We support increased capital for the NADB and similar institutions.

How investing in America’s infrastructure aligns with the USHCC mission and values. Building and strengthening infrastructure is critical for economic development. Despite the importance of infrastructure, the U.S. has not spent enough for decades to maintain and improve it. It accounts for about 2.5 percent of the economy, compared to about 3.9 percent spent in Canada, Australia and South Korea, 5 percent in Europe and 9-12 percent in China. The McKinsey Global Institute estimates that the U.S. must spend at least $150 billion more a year on infrastructure through 2020 to meet its needs. This would add about 1.5 percent to annual economic growth and create at least 1.8 million jobs.

Call to Action Support and encourage more funding toward infrastructure spending including increasing the investments provided by the North American Development Bank (NADB) to implement the USMCA. The USHCC is ready to support any bipartisan legislation that builds the nation’s infrastructure for the 21st century.

Focus Area 1

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USHCC Supports Investing in Puerto Rico’s Economic Development Overview The USHCC urges swift and strong support from the public and private sector to assist in growing and investing more economic development resources for Puerto Rico as its residents, especially for disaster recovery and businesses recovery from a series of ongoing earthquakes and natural disasters less than two years after the devastation caused by Hurricanes Irma and Maria. As Puerto Rico achieves economic recovery, attracts investment, and creates jobs, the USHCC is committed to leveraging its resources to ensure its fellow small businesses on the island lift Puerto Rico’s underground economy above ground.

How supporting Puerto Rico’s economic development aligns with the USHCC mission and values. The USHCC supports Hispanic Business Enterprises in all 50 states and US territories, including Puerto Rico. While Puerto Ricans are U.S. Citizens, Puerto Rico does not receive the same amount of support from the US federal government as other states. Investing in Puerto Rico’s infrastructure, education, healthcare, and economic development are necessary prerequisites to strengthen the Puerto Rican economy and its small and medium-sized businesses.

Call to Action In addition to advocating for the distribution federal resources to repair the infrastructure, minimize the disruption to the daily life of American citizens and the local economy, the USHCC advocates for immediate deployment of appropriated disaster aid to Puerto Rico. As the island recovers from natural disasters, the USHCC advocates for Hispanic

Focus Area 1

Business Enterprises (HBEs) to participate in public and private contracting opportunities to rebuild communities sustainably. Additionally, the USHCC acknowledges the critical need to make significant investments in catalysts to growth, such as sustainable infrastructure, public education, and workforce development, which are likely to stimulate the Puerto Rican economy in the short- and long-term.

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The USHCC Recognizes the Vital Importance of High-Skilled Immigration to America’s Economic Recovery post COVID-19. Overview The United States Hispanic Chamber of Commerce (USHCC) Board of Directors issues the following statement related to the proclamation signed by the President of the United States seeking to restrict immigrants from entering the country through the end of 2020 by restricting H-1B, H-2B, J, and L work visas: The USHCC is concerned about the negative impact that the proclamation will add to America’s economy at a time when we should embrace innovation, technology, and human capital to promote economic growth toward recovery and expansion. Since our founding as a nation, immigrants have built the strongest economy in the world.

How the Administration’s limit on visas goes against USHCC’s mission and values The USHCC supports Hispanic Business Enterprises in all 50 states and US territories, including Puerto Rico. While Puerto Ricans are U.S. Citizens, Puerto Rico does not receive the same amount of support from the US federal government as other states. Investing in Puerto Rico’s infrastructure, education, healthcare, and economic development are necessary prerequisites to strengthen the Puerto Rican economy and its small and medium-sized businesses.

Call to Action We urge the Administration to support American businesses by facilitating opportunities to leverage the economic power of temporary visa and green card holders. According to the Migration Policy Institute, an estimated 377,000 potential temporary workers and green card holders could be impacted by this measure.

One out of ten jobs in America are created by an immigrant-owned business, and American immigrants contribute 15% towards the overall American economy each year, according to the Economic Policy Institute. We must continue to work toward rescuing and strengthening our economy by embracing our collective economic impact.

Immigrants are frontline essential workers. Immigrants are working in hospitals, conducting research, inventing innovative technology, and leading breakthroughs in modern medicine. Now more than ever, immigrants need our support.

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The USHCC Supports Investments Geared Toward the Economic Recovery of Hispanic-Owned Businesses Impacted by COVID-19 Overview The USHCC has worked with Congressional legislation to approve $441 billion out of $500 billion, this equals 88% of requested funds approved for stimulus that could impact Hispanic and Minority-owned small businesses. We must continue to work with Federal Agencies and Financial Institutions to track this funding and make sure our community gets our fair share to economically recover.

As of August 2020, the USHCC has Secured Federal Funding on the Following Legislative Items: Dollar Amount Requested by USHCC

Approved by Congress

Lending for Minority and Community Banks for Hispanic-Owned Business

$65 Billion

$60 Billion *$30 Billion set aside for MDIs and CDFIs

Capital Financing for Hispanic-Serving Institution (HSIs)

$62 Million

$0 Allocated

Paycheck Protection Program (PPP)

$250 Billion

$321 Billion

Economic Injury Disaster Relief Loans (EIDL) and Grants

$120 Billion

$60 Billion

Mid and Long-Term Liquidity for Business

$65 Billion

$0 Allocated

Grand Total

$500 Billion+

$441 Billion

LEGISLATIVE PRIORITY

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Call to Action 1. Expand Forgiveness for Small Businesses in Need: In order to help our nation’s smallest businesses, we urge Congress to quickly pass this legislation that would forgive Paycheck Protection Program (PPP) loans of less than $150,000 upon the borrower’s completion of a simple, one-page forgiveness document. PPP loans of $150,000 and under account for 86 percent of total PPP recipients, but less than 27 percent of PPP loan dollars. Expediting the loan forgiveness process for many of these hard-hit businesses will save more than $7 billion dollars and hours of paperwork. Data provided in an independent analysis by AQN Strategies (AQN) has shown an estimated benefit of issuing auto-forgiveness for various loan size thresholds. AQN anticipates the combined resource requirements of operators’ time and/or third-party expenses to represent an effective cost of $2,000-$4,000 for each business that applies for forgiveness, requiring 20-100 hours of focused time from key leaders of these businesses. With an average loans.

the $30 billion of funding that were allocated so that these financial institutions can continue to serve their customers, including businesses who may not have existing relationships with traditional financial institutions or lenders, in order to get them the necessary operating capital.

2. Resource Partner Grants: Set forth an appropriation to expand Section 1103 (c) of the existing CARES Act to fund grant programs for resource and technical assistance support in the areas of business revitalization, new business technologies, expanded customer service, supplier diversity trainings, supplier diversity matchmaking, financial services, and lending to national organizations with business memberships. These organizations should include minority chambers of commerce, Minority Depository Institutions (MDIs), Community Development Financial Institutions (CDFIs), minority asset managers, and not exclude other nonprofit groups that have the ability to provide technical assistance to distressed businesses during and after COVID-19.

7. Ensure Stimulus Funding and Economic Relief for 501(c)(6) Chambers of Commerce and other non-profit organizations. Amend the CARES Act under Section 1102 (a) definitions, to clarify that the term ‘nonprofit organization’ means an organization that is described in section 501(c)(3) or 501(c)(6) of the Internal Revenue Code. These organizations should be included with parameters around their activity, mission, or number of employees in the entity, and be amended to specifically allow Chambers of Commerce to access these funds.

3. Debt and Equity Options: Congress should work to ensure that all financial institutions, especially FinTech’s, asset managers, and diverse capital funds, are treated fairly in the lending process and that financial facilities allocated to Treasury, the SBA, and the Federal Reserve Bank be granted to these groups to help with our economic recovery. 4. Expand lending for minority and community banks, debt, and equity capital for minority asset managers. Address the capital needs and lending abilities of Minority Depository Institutions (MDIs), Small Business Investment Companies (SBICs), community banks, smaller regional banks, minority asset managers, and Community Development Financial Institutions (CDFIs) that serve minority and low-income communities who represent some of the most vulnerable businesses as it pertains to cash flow and liquidity. According to the U.S. Small Business Administration, the $30 billion that were earmarked for lenders that hold less than $1 billion in assets and “nonbanks” which include CDFI funds and other microlenders have nearly been exhausted within five days of the funds becoming available. Legislative action is needed to expand

5. Increase Funding for Economic Injury Disaster Relief Loans (EIDL) and Grants. Economic Injury Disaster Loan amounts should be based on operating expenses, not number of employees. Small businesses who have less than ten employees are automatically not eligible for the full amount of economic relief available to medium sized businesses. 6. Increase Funding for Paycheck Protection Program (PPP). Increase PPP funding by $250 Billion. Require the top 15 Financial Institutions who are managing the lending for the PPP to set aside a certain percentage for Hispanic and Minority-owned small businesses.

8. Establish a Minority Equity Fund of $65 billion to have the ability to fund Minority Business Enterprises (MBEs), and minority managers to participate in any Economic Relief Programs as implemented by Treasury, SBA or other agencies. 9. Require more transparent reporting on SBA’s PPP and Disaster Relief Programs. Require lenders of all types to ask the ethnicity of loan applicants and report to the SBA to track demographic data that includes the total number and dollar amounts of loans or grants approved and disbursed through the PPP, Emergency EIDL Grants Program, and the EIDL Program as well as the amount of remaining funding in each program. Weekly reporting should include a breakdown by industry, ethnicity, and loan/grant size. Furthermore, the SBA should require the top 15 Financial Institutions who are managing the lending for these loans to provide a good faith effort and set aspirational goals for a certain percentage for Hispanic and Minority-owned small businesses and report these results. As of July 6, 2020, the SBA and the Treasury Department have released information on loan-level data, including business names, addresses, NAICS codes, zip codes, business type, demographic data, non-profit information, name of lender, jobs supported, and loan amount ranges as follows:

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Supporting the Broader US Hispanic Community

Focus Area #2:

USHCC Supports Emphasizing STEM Education and Career & Technical Education Overview The UHSCC believes that preparing Hispanic students for careers in science, technology, engineering, and math (STEM) will help increase participation in a growing workforce where Hispanics are severely underrepresented. According to the Smithsonian Science Education Center, 2.4 million STEM jobs went unfilled in 2018. At the same time, only 2.2 percent of Hispanic college graduates have earned a university degree in a STEM field, and only 67 percent of Hispanic students have access to a full range of STEM courses. To increase Hispanic representation in STEM, we must increase access to higher education and create programs that both encourage Hispanic students to pursue STEM education and help them graduate with a degree in the field. The USHCC also advocates for increased access to career and technical education for Hispanics seeking to further their careers with a new skillset. Career and technical training provides students with tangible skills that translate directly into employment in industries facing a shortage of skilled workers.

How STEM education aligns with the mission of USHCC.

Call to Action Support the continuation of Senate Bill 737, the â&#x20AC;&#x153;Building Blocks of STEM Actâ&#x20AC;?. The bill modifies several National Science Foundation programs that provide grants to institutions of higher education and nonprofit organizations to support science, technology, engineering, and math (STEM) education research focused on early childhood.

The USHCC believes that the Hispanic community has an indispensable role to play in the American Economy. Investing in STEM education will yield higher-earning workers. According to the Joint Economic Committee in the US Senate, STEM workers earn an average of $14,000 more per year than non-STEM workers at nearly every education level. In addition, increasing minority participation in STEM fields is essential to boosting earnings among workers of color and narrowing wage gaps.26

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USHCC Supports Ensuring Access to Excellent Education at Every Level Overview One in four children born in the United States is Hispanic. To invest in the education of Hispanic youth is to invest in the future of the American economy.27 The USHCC advocates for education policy that prepares students for a competitive global workforce. Our leaders in government must increase funding for schools in historically underserved areas and improve standards in educational curricula. In addition, it is essential that Hispanic students have access to affordable higher education through federally mandated initiatives such as Pell Grants and student loan subsidies. It is imperative that the cost of higher education is reduced to increase accessibility. The USHCC supports minority-serving scholarship programs such as TRIO and Gear Up and encourages the expansion of loan forgiveness programs.

How investing in education aligns with the USHCC mission and values. Education is at the heart of preparing a competitive workforce and a prosperous nation. According to the Pew Research Center, individuals that attain a bachelor’s degree will earn $550,000 more than workers who only have a high school or associates degree.28 As the Hispanic community acquires more and better education, there is rising wages and more productivity.29 This translates into a stronger economy and bolsters the outcome of Hispanic Business Enterprises, creating more employment and wealth for the Hispanic community.

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One in four children born in the United States is Hispanic.

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USHCC Supports Building a Diverse and Inclusive Workforce Overview â&#x20AC;&#x153;The American Melting Potâ&#x20AC;? offers U.S. companies a distinct economic advantage by bringing together people with unique perspectives and different backgrounds. The first step in building a diverse and inclusive workforce is addressing wage gaps. Women in the workforce are paid, on average, 80 percent of what their male colleagues in similar positions are paid.30 The gap is wider for Hispanic Women in the workforce are paid, on average, 80 women. Latinas are percent of what their male colleagues in similar typically paid between positions are paid.29 The gap is wider for Hispanic 42 and 61 cents for every dollar paid to anglo, women. Latinas are typically paid between 42 non-Hispanic men.31 If and 61 cents for every dollar paid to anglo, nonwe are to build a robust Hispanic men. workforce, wage gaps must be eliminated. It is equally important that workplace harassment is eliminated. The USHCC supports policies that foster healthy and productive work environments. Studies by Scientific American demonstrate that diversity is correlated with better corporate performance. Companies with one or more women on the board deliver higher average returns on equity and better average growth.32 Similarly, the relationship between racial/ethnic diversity and financial performance is linear. When the leadership of an organization is diverse and inclusive, the company is better equipped to ensure diversity and inclusion at all levels.

How a diverse workforce aligns with the USHCC mission and values. Building a diverse workforce has economic benefits from businesses and the American economy. Increasing diversity in the workplace is integral to the USHCCâ&#x20AC;&#x2122;s mission. Diversity in the workplace often leads to stronger financial returns, generates higher levels of innovation, and makes for a more productive work environment. In fact, a McKinsey & Company study found that companies that place emphasis on diversity are 35% more likely to have financial returns above the industry median.33

American 24

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Melting Pot

USHCC Supports Increasing Access to Affordable and Quality Healthcare Overview

The USHCC believes that a wide range of affordable healthcare options—both public and private—should be available to Hispanic families. We support policies that reduce rising premiums, lower inflated drug prices, increase market competition between private healthcare providers, and expand funding for federal healthcare programs.

16% of Hispanics in the United States are uninsured.

According to the United States Census Bureau, 16 percent of Hispanics in the United States are uninsured.34 In comparison, only six percent of the non-minority population is without health insurance. Eight percent of Hispanic children do not have healthcare, compared to four percent non-minority children.35 One hundred percent of uninsured Hispanics said they went without health coverage due to cost. Additionally, 24 percent of Hispanics say they have no usual source of care, and 26 percent say they have had no healthcare visits in the last 12 months.36 Since the passage of the Affordable Care Act (ACA), the Hispanic uninsured rate decreased more than any other demographic. In 2010, 43.2 percent of working-age Hispanic adults were uninsured. By 2016, this number fell to 24.8 percent.37 The ACA’s Medicaid expansion also improved coverage rates for non-citizen Hispanic immigrants.38 As of 2018, there were 4 million Hispanic individuals insured under the ACA.39 The USHCC calls for a bipartisan effort to strengthen and improve the federal healthcare system, ensure affordability, and expand coverage for all Americans that lack the purchasing power to enroll in private plans.

How access to affordable and quality healthcare aligns with the USHCC mission and values. Access to healthcare is pivotal to a well-functioning economy. Hispanics are three times less likely to have health care coverage than Anglo Americans. Reducing this disparity and ensuring Hispanics are healthy will bolster the American economy and improve the economic outcomes in the Hispanic community.

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USHCC Supports Advancing the Health of the Hispanic Workforce Overview Compared to the non-minority population, Hispanics in the U.S. have limited access to quality care and unique barriers to healthy livelihoods. Hispanic Americans are less likely to have healthcare and more likely to suffer from conditions such as diabetes and obesity.40 Such health discrepancies are caused, in part, by inadequate social determinants of health. These are both quantitative and qualitative factors that determine a familyâ&#x20AC;&#x2122;s living conditions and, consequently, health. For example, zip code, income, education, occupation, and social norms are all important social determinants of health.41 The USHCC advocates for a holistic approach to improving health in the Hispanic community. We encourage our leaders in government to increase access to affordable healthcare and craft policies that improve social determinates of health for Hispanic families.

2020 Hispanics make up

How advancing the health of the Hispanic workforce aligns with the USHCC mission and values.

16%

Hispanics currently make up 16 percent of the overall U.S. labor market and will account for one out of every two new workers entering the workforce by 2025.42 With Hispanics making up a large percentage of the US workforce, access to quality healthcare is essential for improving productivity and working toward economic growth in the Hispanic community.

Overall U.S. Labor Market

2025 Hispanics will make up

50% New Workers Entering the Workforce

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USHCC Supports Prioritizing Immigration as an Economic Imperative Overview The USHCC recognizes that immigrants make vital contributions to the American economy. Also, immigrants are twice as likely as the native-born population to start a business.43 Over 43 percent of Fortune 500 companies were started by immigrants or their children.44 Immigrants contributed approximately $2 trillion in U.S. Gross Domestic Product (GDP) in 2017.45 Our government must craft policies that help immigrants enter the workforce and join the fabric of society. Immigrants comprise 17.1 percent of the American workforce overall, and they are much more likely than native-born employees to work in industries experiencing a labor shortage such as construction, manufacturing, or agriculture.46 If the United States is to develop a robust workforce, both “skilled” and “unskilled”, immigrants are essential. Immigrants provide necessary services in every field, ranging from neurosurgeons to strawberry pickers. The USHCC firmly believes that the expansion and expedition of processes for H-1B visas will immensely help the American economy to stay ahead by having a diverse and culturally rich workforce. The USHCC supports immigration policies that facilitate the legal immigration of workers of all skill levels. Limiting immigration to “high-skilled” would undermine the demands of our complex workforce and harm key American industries. Instead, we encourage policymakers to facilitate legal immigration to meet the needs of our workforce: streamlining the visa process, improving the guest-worker program, and ensuring that visa caps meet the needs of employers.

How comprehensive immigration aligns with the USHCC mission and values. A comprehensive immigration system bolsters the American economy and improves the economic outcomes for the Hispanic community. A system that is fair and inclusive of immigrants will encourage more Hispanics to start and grow their businesses, improving the economic outcomes of the Hispanic community and the US economy.

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43 percent of Fortune 500 companies were started by immigrants or their children. Immigrants contributed approximately $2 trillion in U.S. Gross Domestic Product (GDP) in 2017. Immigrants comprise 17.1 percent of the American workforce overall.

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USHCC Supports Building a Compassionate and Economical Approach to Border Security Using Technology Overview All Americans can agree that our nation’s immigration system is in serious need of reform. The USHCC believes that border security is essential while keeping trade circularity intact through the use of modern technology. The United States and Mexico have been longtime trading partners. Building and maintaining a wall on our southern border has always been a primitive and ineffective approach to our nation’s security. The Massachusetts Institute for Technology estimates that a border wall could cost the U.S. a total of $40 billion47 and largely ineffective due to geographical and topographical conditions. Instead of constructing a 30-foot tall wall along the border, the United States should only develop physical barriers where necessary. Alternatively, policymakers should invest in better technology along our southern border that will modernize points of entry, expedite the processing of asylum seekers, and help federal agents identify actual threats to national security.

Call to Action The USHCC opposes the recent adoption of policies by the Department of Justice that facilitate the separation of immigrant families. The actions of immigration enforcement officials under the “zero-tolerance policy” violate both basic human rights and American values. We implore the Administration to adopt a border security strategy that is both compassionate and economical, allowing hard-working immigrant families to pursue and achieve the American dream while protecting against threats to national security.

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USHCC Supports Continuing Deferred Action for Childhood Arrivals (DACA) and Temporary Protected Status (TPS) Overview DACA recipients and DACA-eligible individuals—known as DREAMers—are immigrants who were brought to the United States without documentation at a young age. They did not intentionally violate immigration law, nor should they be punished for the actions of their parents who wanted to provide their children with a better life and economic opportunity. Thanks to DACA, established by executive order in 2012, 800,000 DREAMers have been able to live and work in the U.S. legally.48 It is estimated that an additional 1 million individuals are eligible for the program.49 In September 2017, the Administration announced the end of the program, creating uncertainty in the lives of DACA recipients. The Supreme Court announced that it would hear and evaluate the case, the decision is expected to be final this year. Deporting DREAMers would negatively impact the U.S. economy and would be costly for American taxpayers. Ninety-seven percent of DREAMers are employed, in school, or in the United States military.50 Each year, DREAMers pay roughly $2 billion in state and local taxes.51 If DREAMers are forced to leave the country, America will face a $433 billion reduction in economic growth over the next decade.52 Like DACA, there are significant economic detriments to rescinding Temporary Protected Status (TPS). TPS is a legal immigration status “granted to individuals from designated countries facing ongoing conflict, disaster, or other exigent circumstance.”53 There are more than 320,000 people living in the U.S. with TPS status and approximately 275,000 U.S.-born children of TPS recipients.54 If TPS recipients were forced to leave the American workforce, the U.S. would lose $164 billion in gross domestic product (GDP) over the next decade and employers would experience $967 million in turnover costs.55

How DACA and TPS align with the USHCC mission and values. Ending the DACA program is not in the best interest of the US economy, as DACA recipients are key investments toward the nation’s future workforce. The Center for American Progress recently estimated the potential wasted economic benefits to be a staggering $433.4 billion in gross domestic product over the next decade. More important, ending the DACA would disrupt and forever change the outcomes of close to 750,000 young people who have followed the law, follow the rules, and pursued higher education.56

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Deferred Action for Childhood Arrivals

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Call to Action The USHCC calls for legislation that allows DREAMers and TPS recipients to maintain their legal status to live, work and learn in the United States, as well as a pathway to citizenship. The elimination of both programs has been delayed by federal courts, but both could be subject to an appeal, creating instability in the lives of DREAMers, TPS recipients, their families, and their employers. In order to permanently secure the legal status of DACA and TPS recipients, their livelihoods must be protected by law. The USHCC strongly opposes recent efforts to eliminate Deferred Action for Childhood Arrivals (DACA) and terminate Temporary Protected Status (TPS) for El Salvador, Honduras, and Haiti. The immigrants that have been granted legal status under these two programs make significant contributions to the American economy.

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USHCC Supports Providing Access to Affordable Housing Overview

Call to Action Support the Affordable Housing Credit Improvement Act of 2019 (AHCIA) and other legislation that strengthens housing credits for lower income families to achieve home ownership.

The main component of individual capital for the United States middle class has historically been property ownership. To support both the national economy and lower income workers who contribute to the American economy, we propose major reform to make housing more affordable and accessible. The USHCC is a strong advocate for an increase in housing credits, as we recognize that equitable access to home ownership is a critical pathway towards building wealth and equity which provide access to loan to start or scale businesses in our community. The approval of bipartisan legislation to strengthen the Low-Income Housing Tax Credit is essential to ensure a controlled expansion of the United States economy. The Affordable Housing Credit Improvement Act of 2019 (AHCIA) represented a bipartisan effort to modernize the backbone of the American household economy. This bill, if passed, would provide a tremendous economic opportunity to SMBs through the building of over 550,000 affordable homes within ten years and generate $48.5 billion in new wages and business income. Moreover, this legislation would directly generate $19.1 billion in additional tax revenue and over 500,000 jobs. The correct implementation of a comprehensive Housing Credit reform can be extremely beneficial to the American economy. Furthermore, it can protect future investments by guaranteeing the stable development of the labor force.

How affordable housing aligns with the USHCC mission and values. Access to affordable housing is vital to the American economy. According to the Harvard Joint Center for Housing studies, affordable housing contributes to significant economic impacts, including increases in local purchasing power, job creation and new tax revenues.57

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Focus Area #3: Integrating Hispanic Business Enterprises in a Prospering and Sustainable Global Economy

USHCC Supports Helping Hispanic Business Enterprises Access International Markets Overview Tapping into international markets creates growth opportunities that are not available in the United States alone. Nearly 95 percent of the world’s consumers live outside of the United States, and two thirds of the world’s purchasing power is in foreign countries.58 However, it is challenging for small businesses to access international markets. The USHCC supports federal programs and provisions within international trade agreements that help small businesses export and access international markets. The U.S. Department of Commerce and the Small Business Administration (SBA) both offer online resources and guidance to small business owners looking to export their products.59 Additionally, the Export-Import Bank of the United States (EXIM) is a resource for small businesses. This independent federal agency provides financing solutions to empower exporters of U.S. goods. EXIM Bank resources include export credit insurance, working capital guarantees, and guarantees of commercial loans to foreign buyers, all of which are important tools that facilitate access to foreign markets.60 The USHCC encourages these federal agencies to make a concerted effort to engage Hispanic business owners that may be unaware of such resources.

How helping HBEs access international markets aligns with the USHCC mission and values. Hispanic Business Enterprises have strong advantages when it comes to international business including cultural ties, the ability to speak more than one language, and networks outside of the United States. Yet a report by the Minority Business Development Agency found that minority-owned firms accounted for a disproportionately smaller share of exporters relative to their numbers, but exports accounted for a larger percentage of their receipts when compared to non- MBE export firms. Helping to reduce this disparity will improve economic outcomes, diversify markets, and connect Hispanic Businesses to the global economy.

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Trade between the United States and Mexico in 2019 surpassed $615 billion. In 2020, both Mexico and Canada became the United States’ largest trading partners.

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USHCC Supports Strengthening International Trade Relations that Benefit Hispanic Business Enterprises Overview The USHCC recognizes that international interconnectedness is an opportunity for the American economy. Now more than ever, the sharing of ideas, culture, and commerce is occurring on a global scale. The United States must build international trade relationships and help Hispanic owned businesses—big and small—access international markets. The USHCC previously supported the U.S.’s participation in the Trans-Pacific Partnership (TPP). The TPP is a multilateral trade agreement between 12 countries that border the Pacific Ocean, spanning from North and South America to Asia and Australia. By exiting this trade agreement, the United States missed an opportunity to build relationships with nations that, combined, represent 40 percent of the world’s economic output.61

How stronger trade relations aligns with the USHCC mission and values. Trade deals increase the amount of export opportunities for Hispanic businesses and make it easier to access global markets; furthermore, imports economically benefit small businesses in allowing to grow and scale while reducing costs. We support policies that establish trade agreements that support small businesses and broader economic growth by reducing tariffs and barriers to accessing new markets. Such agreements can help Hispanic businesses access new markets and integrate into the global economy.

Call to Action We support trade deals that allow Hispanic Business Enterprises to access new markets, increase exports, and benefit from programs like the National Export Initiative and multilateral trade deals.

Focus Area 3

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USHCC Supports Developing Secure Technological Infrastructure Overview American businesses are growing increasingly dependent on technological infrastructure. In a recent survey, 80 percent of consumers said that they are more likely to shop at a business if the business has an easy-to-use website.62 An additional 60 percent said that they preferred to be contacted by a business through a digital channel, such as e-mail or website banners.63 Finally, 78 percent of consumers ranked a digital payment method, such as a card or phone, as their topmost preferred payment option.64

How strengthening technological infrastructure aligns with the USHCC mission and values. The digital transformation of Hispanic Business Enterprises is necessary to ensure their success, but there is a discrepancy in both quality and accessibility of tech infrastructure between urban and rural areas and within historically underserved communities, creating a “digital divide.”65 . A strong and comprehensive legislative solution is needed to preserve the internet as an open platform for ideas, investment, and innovation. This can and should be done in a way that protects the rights of consumers, supports consumer choice, prioritizes public safety, and incentivizes broadband infrastructure build out to deliver affordable service options to historically disconnected communities.52 As one of the youngest user groups in the country (with an average age of 29) Latinos have benefited from the transformative power of the internet leading to some of the highest rates of digital entrepreneurship, and the consumption of digital media at rates that far outpace other demographic groups. New technology can create opportunities for business-owners, but it can also make the businesses and customers vulnerable to cyberattacks such as viruses, piracy, and information breaches. It is critical that businesses are aware of the steps they can take to prevent cybervulnerability, including firewall security protection and password authentication. The USHCC encourages the Federal Communications Commission (FCC) and leaders in the technology industry to take appropriate action to inhibit hackers and prevent future cyberattacks.

Call to Action The USHCC supports federal initiatives and publicprivate partnerships aimed at eliminating the “digital divide.” SMBs need to be able to compete fairly with big corporations to access global markets. The USHCC supports an open internet as it is a driver of commerce offering entrepreneurs a platform for reaching customers and suppliers worldwide. We strongly believe that infrastructure investment and innovation are cornerstones in supporting the growth of Hispanic businesses in all sectors and from coast to coast USHCC members support federal data privacy legislation that fosters innovation and

regulatory certainty while respecting individual privacy and choice. Providing clarity to consumers and businesses about how to appropriately leverage data would support innovation, consumer confidence, and Hispanic Business Enterprises (HBE) who rely on the exchange of information to improve the availability and quality of their goods and services. Congress must enact legislation that creates an environment where businesses know the rules of the road, and consumers feel comfortable sharing their data. Moreover, rules governing privacy and data collection should be consistent regardless of who collects it and how it is collected.

property, and balance hate speech address hate speech and the suppression of civic participation of targeted populations amid surges in harassment and abuse of the Hispanic community across the country and online. Restoring accountability on the internet is an effective means to ensure that our HBEs and their agents seize to be subjected to abusive and harassing activity online. At the federal level, we must incentivize accountability and policing of illegal and offensive activity across all digital platforms and ensure there are equitable mechanisms in place to protect the userexperience of the Hispanic business community.

The USHCC advocates for technology rules that will also consider important policy areas including intellectual

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USHCC Supports Privacy in The Data Economy Overview The USHCC represents Hispanic-owned businesses in every sector of the economy, and we understand the importance of technology and telecommunications resources are a critical component to their success and creates growth and opportunity for the U.S. economy. The internet offers consumers more choices and better prices; provides businesses of all sizes more opportunities to sell their products and services across state and national boundaries; and encourages entrepreneurs to create new products and platforms. The USHCC advocates for federal privacy rules to protect businesses and consumers. Our 2020 innovation agenda promotes market-based solutions, policies that foster investment in technology research and the deployment of telecommunications infrastructure to historically underserved markets, and a balanced regulatory treatment of online platforms. We are committed to advancing policies that safeguard U.S. information and technology assets and protect consumer data while promoting innovation and growth in the digital economy. U.S. Hispanic consumers are embracing technology faster than any other consumer segment and are online using search engines, devices and apps, connecting to peers and family through social media, and participating in the digital economy at rates that continue to outpace other consumer groups. With a combined $2.13 trillion in purchasing power, Hispanic businesses and consumers are a critical engine for the internet economy and represent an important stakeholder group in the policy discussion to protect consumer privacy.

Call to Action The USHCC supports Congressional action and collaboration with agencies like the FCC, and Federal Trade Commission to establish policies that: • Empowers the FCC to improve our current broadband map by appropriating the necessary funding to facilitate more granular reporting that shows the actual contours of a provider’s service area. • Streamlines and reduces regulatory barriers to 5G, wireline, wireless, and other communications infrastructure. • Expands broadband infrastructure to rural and historically underserved communities through smart funding, regulation, and permitting.

Focus Area 3

USHCC Supports Developing Communications Infrastructure Overview As the U.S. develops a national broadband strategy, much is at stake for Hispanic consumers, our country’s economy, as well as future innovation and its many social benefits. Dynamic issues from infrastructure deployment, broadband adoption, to digital literacy all play into the growing digital divide and stalls the pace of innovation and economic opportunity for the Hispanic community nationally. Reliable and affordable broadband access is key to ensuring that minority businesses and the people they serve are able to fully participate and benefit from our 21st Century economy.

U n ite d Sta te s H isp a nic Cha mbe r of Comme rc e | 2020-2021 Pol icy Pl a tfor m The USHCC has a proven track record of collaboration with the business community and other key national partners representing our minority business enterprises.

USHCC Supports Improving Energy Infrastructure Overview The USHCC supports policies that improve energy, affordability and efficiency, easing burdens for American business owners. Efficient energy use, by definition, allows business owners to reduce the amount of energy required to operate, thereby keeping costs low. Federal resources such as the SBA Energy Efficiency Loan Program can help fund improvements that lead to a reduction in energy usage.66

How supporting energy infrastructure aligns with the USHCC mission and values. The USHCC supports federal regulation that allows small business owners to access energy supplies at globally competitive prices. Each year, small businesses in the United States spend more than $60 billion on energy.67 In fact, 35 percent of small businesses say that basic energy costs are one of their top 3 expenses.68 Everyday energy costs are burdensome, and the rapidly changing energy market creates instability. Even basic expenses such as vehicle operation and heating/ cooling can devastate a small business when prices go up.

Focus Area 3

U ni t ed St at es H i sp ani c C ham b er o f C o m m erce | 2 0 2 0 -2 021 Policy P la tfor m

USHCC Supports Policies that Promote Environmental Sustainability Overview Both the public and private sectors are making sustainability a top priority. The effects of human carbon emissions are evident and as we approach the deadline of action to prevent irreparable damages to the environment, consumers are increasingly buying from businesses committed to environmental sustainability. As policy makers consider legislation to address energy and sustainability issues, the USHCC is advocating to ensure legislative action that supports Hispanicowned businesses having opportunities to participate in the transition to a cleaner energy future. This should include all aspects such as procurement opportunities, issues of equity and inclusion, and the impact of energy legislation in Hispanic communities. The transition toward a circular supply chain will disrupt the market and the companies who pioneer this change will be rewarded by consumers.69 This inevitable trend will lead up to the government holding environmentally irresponsible businesses accountable for the damages done to the planet. Recent legislative discussions suggest an unprecedented mobilization to transition the entire United States economy to become carbon neutral. To counter the economic effects of this change, the establishment of mechanisms to assist business and workers transition with stability are fundamental. Legislative measures that will lay out the road to the reduction of carbon emissions are already taking place. Tax breaks for sustainable practices and the switch to clean energies represent a great opportunity to develop a profitable and long-lasting business.

How supporting environmental sustainability aligns with the USHCC mission and values. The USHCC is committed to supporting all Hispanic businesses who anticipate the massive upcoming legislative challenges to all industries as policymakers address this situation. The strategy to confront the disruption on industrial generated carbon emissions must be comprehensive and efficient to avoid excessive, ineffective, and costly regulations.

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Achieving environmental sustainability is paramount to business and society. 36

Focus Area 3

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U n ite d Sta te s H isp a nic Cha mbe r of Comme rc e | 2020-2021 Pol icy Pl a tfor m

References

1. “Hispanic Business Report 2017.” Geoscape. 2017. 2. “The U.S. Latino Entrepreneurship Gap.” Stanford Latino Entrepreneurship Initiative. Stanford University Graduate School of Business. 2018. 3. “Buying power of Hispanic consumers in the United States from 1990 to 2020 (in trillion U.S. dollars).” Statista. December 2016. 4. “Labor force characteristics by race and ethnicity, 2016.” Bureau of Labor Statistics. U.S. Department of Labor. October 2017. 5. https://www.worldometers.info/gdp/gdp-by-country/ 6. https://www.nytimes.com/2019/07/02/us/citizenshipquestion-census.html 7. https://fortune.com/2019/11/18/2020-census-playsbigger-role-federal-funds-local-and-state-governments/ 8. “North America: GDP Current US$.” The World Bank. 2019. 9. “United States-Mexico-Canada Trade Fact Sheet: Modernizing NAFTA into a 21st Century Trade Agreement.” Office of the United States Trade Representative. Executive Office of the President. October 2018. 10. Ibid. 11. “How Pass-Through Income Will Be Taxed in 2018 For Small Business Owners.” Greenbush Financial Group, LLC. 2018.

27. “26.8 million Hispanics or Latinos in the U.S. labor force in 2016.” Bureau of Labor Statistics. U.S. Department of Labor. September 2017. 28. https://www.pewsocialtrends.org/2011/05 /16/lifetime-earnings-of-college-graduates/ 29. https://www.epi.org/publication/states-educationproductivity-growth-foundations/ 30. Miller, Kevin. “The Simple Truth about the Gender Pay Gap.” American Association of University Women. 2019. 31. “Beyond Wages: Effects of the Latina Wage Gap.” UnidosUS. National Partnership for Women & Families. November 2018. 32. Phillips, Katherine W. “How Diversity Makes Us Smarter.” Scientific American. October 2014. 33. https://assets.mckinsey.com/~/ media/857F440109AA4D13A54D9C496D86ED58.ashx 34. “Health Insurance Coverage in the United States: 2017.” United States Census Bureau. September 2017.

14. Ibid.

40. “Obesity and Hispanic Americans.” U.S. Department of Health and Human Services Offices of Minority Health. 2016.

19 “Despite big barriers, Latino entrepreneurs are outpacing all others in U.S.” Silicon Valley Business Journal, 2018. 20. “Small Business Loan Credit Scoring.” The Small Business Administration. 2019. 21. “Small businesses see significant gains from the ACA.” Healthcare. Small Business Majority. October 2018. 22. Ibid. 23. “NSBA 2018 Politics of Small Business Survey.” National Small Business Association. 2018. 24. “Small businesses see significant gains from the ACA.” Healthcare. Small Business Majority. October 2018. 25. Ibid. 26. https://www.jec.senate.gov/public/_cache/ files/2061de0c-be23-4cf1-ad0b-270d3f6c661e/stem-top10-12.4-final-1-pager.pdf

54. Svajlenka, Nicole Prchal, Angie Bautista Chavez, and Laura Munoz Lopez. “TPS Holders Are Integral Members of the U.S. Economy and Society.” Center for American Progress. October 2017. 55. Ibid.

57. https://homeforallsmc.org/wp-content/ uploads/2017/05/Impact-of-Affordable-Housing-onFamilies-and-Communities.pdf

37. Doty, Michelle M. and Sara R Collins. “Millions More Latino Adults Are Insured Under the Affordable Care Act.” The Commonwealth Fund. January 2017.

39. Artiga, Samantha, Julia Foutz, and Anthony Damico. “Health Coverage by Race and Ethnicity: Changes Under ACA.” Henry J. Kaiser Family Foundation. January 2018.

18. https://www.americanbanker.com/opinion/smallbusiness-lending-has-a-diversity-problem

53. “Temporary Protected Status.” U.S. Citizenship and Immigration Services. U.S. Department of Homeland Security. 2019.

36. Ibid.

13. “Small Business Owners Support Policies Promoting Access to Responsible Lending.” Small Business Majority. May 2018.

17. https://www.mbda.gov/news/blog/2010/07/accesscapital-still-challenge-minority-business-enterprises

52. Hudak, John and Elaine Karmack. “The Mind-Boggling Cost of DACA Repeal.” The Brookings Institute. September 7, 2017.

56. https://www.unidosus.org/about-us/president-andceo/articles/defend-daca-121716

12. Banister, Jon. “With $6 Trillion In Potential Investment on The Line, Opportunity Zones Begin to Take Shape.” Biznow. April 2018.

16. Ibid.

51. “New Report: DACA-Eligible Immigrants Annually Pay $2 Billion in State and Local Taxes.” Institute on Taxation and Economic Policy. April 24, 2017.

35. “Health and Health Care for Hispanics in the United States.” Henry J Kaiser Family Foundation. January 2018.

38. Stimpson, Jim P. and Fernando A. Wilson. “Medicaid Expansion Improved Health Insurance Coverage For Immigrants, But Disparities Persist.” Social Determinants, Drug, and Device Prices. Health Affairs. October 2018.

15. “Executive Summary: Disparities in Capital Access Between Minority and Non-Minority Businesses.” Minority Business Development Agency. 2017.

50. Wong, Kim, Grecia Martinez Rosas, Adam Luna, Henry Manning, Adrian Reyna, Patrick O’Shea, Tom Jawetz, and Phillip E. Wolgin. “DACA Recipients’ Economic and Educational Gains Continue to Grow.” Center for American Progress. August 28, 2017.

41. Velasco-Mondragon, Eduardo, Angela Jimenez, Anna G. Palladino-Davis, Dawn Davis, and Jose A. EscmillaCejudo. “Hispanic health in the USA: a scoping review of the literature.” Public Health Reviews 2016. 42 “Even amid ‘trying times,’ Latinos are nation’s growth engine, Nielsen report finds.” NBCNews, 2019. 43. Stengler, Dane and Jason Weins. “The Economic Case for Welcoming Immigrant Entrepreneurs.” Ewig Marion Kauffman Foundation. September 2015.

58. Kochhar, Rakesh. “A Global Middle Class is More Promise Than Reality.” Pew Research Center. July 2015. 59. “Going Global: Resources for Entrepreneurs and Small Businesses.” Small Business & Entrepreneurship Council. 60. “Export Solutions Needed.” Export-Import Bank of the United States. 2019. 61. Meltzer, Joshua P. “The Trans-Pacific Partnership Agreement, the Environment, and Climate Change.” Brookings. September 2013. 62. “The Digital Transformation of SMBs: The Future of Commerce.” Visa. 2018. 63. Ibid. 64. Ibid. 65. Roark, Alejandro. “Congress, Not the Courts, Needs to Deliver Consumers a Solution on an Open Internet.” Hispanic Technology & Telecommunications Partnership. Pew Research Center. October 2010.

44. Ibid.

66. Langer, Rois. “Leveraging SBA Loan Programs to Finance Building Energy Efficiency Projects.” Electricity, Resources, and Building Systems. National Renewable Energy Laboratory. U.S. Department of Energy. 2018.

45. Nicholson, Michael. “The Facts on Immigration Today: 2017 Edition.” The Center for American Progress. April 2017.

67. “Small Businesses: An Overview of Energy Use and Energy Efficiency Opportunities.” EnergyStar. U.S. Department of Energy. 2019.

46. “Foreign-Born Workers: Labor Force Characteristics.” Bureau of Labor Statistics: The United States Department of Labor. May 18, 2017.

68. “Energy.” National Federation of Independent Businesses. 2019.

47. Kakaes, Konstantin. “Bad Math Props Up Trump’s Border Wall.” MIT Technology Review. Massachusetts Institute of Technology. October 2016.

69. Jonquil Hackenberg. 2020 Will Be The Year of Sustainable Business: Here’s Why. Forbes, 2019

48. Lopez, Gustavo and Jens Manuel Krogstad. “Key Facts About Unauthorized Immigrants Enrolled in DACA.” Pew Research Center. September 2017. 49. Ibid.

References

U ni t ed St at es H i sp ani c C ham b er o f C o m m erce | 2 0 2 0 -2 021 Policy P la tfor m

United States Hispanic Chamber of Commerce 2020-2021 Policy Platform

@USHCC @USHCC @theUSHCC @USHCC

C. LeRoy Cavazos-Reyna, MPA Vice President, Government & International Affairs LCavazos@ushcc.com Brianna Dimas Vice President, Programs & Communications BDimas@ushcc.com

United States Hispanic Chamber of Commerce | 1424 K Street NW, Suite 401 | Washington D.C. 20005