Ethnic minorities are currently experiencing so many problems in getting the required funding they need to establish or finance their businesses. But now they can be eligible for minority business loans that are especially made to support minority owned businesses. If you are a minority, you have got wide range of resources available to help everyone by offering the same advantages and opportunities.
The Small Business Administration (SBA) is the best place to start looking for help and resources. Minority business loans are offered to people who show a need for financing, excellent credit records and a detailed and sound business strategy plan.
Additionally there are some firms that allocate funds to lend to minority owned businesses. But here the thing is finding which firm is providing funding. You can discover that you are qualified to many business financing options when you start exploring the available resources through the SBA.
Are There Grants Available For Minority Owned Businesses?
It is a general fallacy that the US government can offer grants or free money to help minorities start their businesses. This is not true. However the US government, state and local governments have some initiatives in place to help minorities, women, and veterans; however there is no free money.
How Minority-Owned Business Is A Growing Sector?
Businesses owned by minorities are one of the major growing sectors in the US. Minority owned businesses are the part of US economy and constantly adding more businesses and creating jobs every year. Minorities are always trying to come up with new and innovative ideas to persuade small businesses owners into their vicinity. Additionally, women owned businesses help encourage females around the US to start and grow their own businesses.
Meeting Business Challenges Head-on
Minority owned businesses with the most intricate of plans may find themselves in a place where they can’t get the funding. This is where instant access to capital becomes very important. In today’s economic climate, it’s more difficult than ever for business owners to get the funding they need for their business, as the qualifying standards have gotten stricter.
Like all business owner, minority owned businesses must compete with a continuously unpredictable market and daily changing requirements. Between increasing workforce, purchasing new inventory, buying equipment or plant and moving to different place – the business takes cash and it means requires borrowing. Luckily, there’s a complete funding program for minorities known as minority business loans.
What Are The Traditional Financing Options?
SBA Community Advantage
This is a unique program from SBA for businesses in the undeserved markets. This allows minority business owners requiring up to 250,000 loan amount. Not only funding, SBA also help minorities with business management and technical help. So that is the primary location to search for funding.
Minority Business Development Agency (MBDA)
MBDA is an agency that assists minorities to start and manage businesses with the aim to create more jobs. They work all over the US to offer minority business loans and education and marketing opportunities.
National Minority Supplier Development Council (NMSDC)
NMSDC is an agency formed to assist the minority-owned businesses to raise capital. Using Business Consortium Fund, NMSDC help minority-owned businesses to develop across the 24 regional councils. They have almost 1,750 members who have helped 12,000 minority owned businesses.
Qualifications For Minority Business Loan
To be eligible for a minority business loan, the business needs to prove that it is owned by a minority, and that the business can manage the financial responsibility of the loan repayment. However, depending on the lender, there may be other qualifications.
Alternative Funding Sources
Since banks and credit unions have strict lending requirements for all businesses, minority-owned businesses find it difficult to secure the funding they need for their businesses. If you’re a minority owned business and looking to fund your business, there are some private lenders such as, Merchant Advisors, OnDeck and Kabbage who can offer you with the affordable minority business loans.
The good news is if you’re a minority business and looking for financing, there are loan programs available in the market especially designed to help minorities succeed in business.
Benefits Of Minority Business Loan
- Flexible payment terms– you will not be stuck to an inflexible plan that may put your business in a difficult spot every month.
- No matter what your credit is, there is also a solution for minority owned business cash advance
- Funds wired directly into your bank account in just five working days
- No upfront costs and no closing costs
- Get same rate over the entire life of your business. Guaranteed!
- No early repayment penalties
- Competitive rates!
Apart from our historical past, lots of us have the dream of starting our own business. Regrettably, minority-owned businesses still experience an inequitable struggle in some areas. This is the reason why government and personal sectors have stepped in to help offer financial support and other business related resources to create a situation that is fair for all. As a minority, when you’re ready to take step toward owning your own business, understand that at Merchant Advisors, you can get the right financial programs to help you achieve your dream.