Minority-owned businesses are growing at a faster pace as compared to standard US small businesses. Minority business owners owned almost 8 million, or 29%, of the nation’s nearly 27.6 million businesses as of 2012, which is up from 5.8 million in 2007, according to US Census Bureau data.
But, getting funding can be a challenge for minority-owned businesses. Consistent with the federal Minority Business Development Agency, minority business owners may additionally have lower credit scores and less assets to acquire loans as compared to other small business owners. In line with the study performed by Experian, the average credit score of a minority business owner is 707, which is 15 points less than the average of a small business owner in the US.
Meeting Business Challenges Immediately
Business’ ups and downs primarily based on smart approach and right planning. For many small business owners that means having the funding required to procure equipment, pay workers, market to consumers and perform all the other things that a small business needs to do to flourish. However, even small business owners with the most complex plans might also find themselves at a loss for funding. That is the situation where getting funding is essential.
Of course, borrowing can be easier said than done. In today’s financial climate, its way difficult than ever for struggling small business owners to get the funding they require, as qualifying standards have only gotten sterner.
Build Your Own Network
Minority women business owners are going to have to build their very own network of resources to “rely on,” specifically if they need to acquire a business loan. Small business loans for women are accessible through many SBA microloan programs. SBA microloans are mainly provided via local community based, nonprofit micro-lending firms that offer as much as $50,000 to business owners in disadvantaged communities.
Women are frequently considered disadvantaged as a minority because they really don’t have access to the financial resources and assistance required to start and build a prosperous business.
In case you’re a minority business owner and also you are in need of business loan for your small business, you should absolutely consider applying for a minority business loan. A minority business loan can be just what you need to get your business off the ground and take your business to the next level.
Don’t forget these stats, when figuring out whether or not a minority business loan can be appropriate for you:
- Almost 97% of the minority owned businesses received funding were still running their business two years later through getting the funding.
- 54% of the minority owned businesses received funding, were able to hire at least 5.6 workers as a result of getting funding.
- 32% of minority businesses who received funding, stated that their revenues accelerated as a result of getting the funding and 41% of businesses said that the growth in revenue met or exceeded their expectations.
With stats like that, it appears that a minority business loan is well worth considering if you are trying to grow your minority-owned business. If you are searching for minority owned business funding programs, then a minority business loan can be a step in the right direction.