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Minority business loan

Small Business Loans
for Minorities.

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What Is A Minority Business Loan?

Minority business loans provide an opportunity for minority business owners to get funding and grow their small businesses. These loans are usually provided by SBA, microlenders, or non-profit companies. These business loans provide access to credit, so businesses with a lack of financial resources can benefit from them.

Max. Loan Amount
$100, 000
(For Business Line of Credit only)
Loan Terms
12, 18, or 14 months
Payment
On a weekly or monthly basis

How To Get The Best Minority Business Loans?

Every business—whether small or large needs working capital to grow. It would be hard to get funds for the business if it's business owner happened to be a minority. But the alternative lending industry proved to be revolutionary. The best way to secure a business loan is to understand what can affect your eligibility and funding options. The more you know, the better your chances of success.

Whether you’re an African-American, Hispanic-American, Asian-American, Alaskan Native, Pacific Islander or American Indian individuals, understanding how to qualify and where you can get a small business loan actually matters the most. Certainly, this isn’t just a piece of cake. Small business lenders have complex funding processes and finding the best loan options can be a tough hunt.

Access our fast and efficient application.

Apply

Fill an online application in minutes.

Contact

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Get Funded

It only takes a couple of days!

Repay

Make a fixed monthly payment on time.

In order to secure a minority business loan, you must have a credit score of 650. In addition to this, if you want to apply for an SBA loan, you must be:

Lastly, if you decide to go with an online lender, their requirement might vary a bit. Your business must have:

Let’s get started

Minority Small Business Loans From Merchant Advisors

At Merchant Advisors, we offer a wide range of small business loans for minorities. From traditional funding to business cash advances, minority businesses can get the funding they need to start and grow their small businesses.

By making the small business loan application process easy and simple, we make sure you only focus on what’s truly important to you—your business. We understand that time is of the essence for small business owners, that is why we make our online loan application process simple and straightforward. There’s no obligation to apply, and you can get quick approvals with access to credit in as little as 24 hours.

How To Secure A Small Business Loan For Minorities?

There is no specific lender that provides minority business loans for minorities. You can also get funding from federal, state, local and private lenders with customized loan options. These resources help minority business owners who are facing challenges like securing funding, being economically deprived or starting businesses in underprivileged communities.

Multiple Convenient Funding Options For Minority Business Owners

  • SBA 8(a)

    This Small Business Administration program is determined to give an equal opportunity to the minority business owners who have been marginalized by the system before. In order to qualify for this funding program, 51% of your manpower must consist of people who have been suffering financially due to unjust and unequal social and economic structure. Getting into this program gives a chance to those business owners to walk on the same path as the majority. This program comprises of two stages: Developmental stage for four years and then transition stage. Getting into this program will brighten the SBA loan approval chances.

  • SBA Microloan

    Although this particular kind of program is not specially designed for minority, $50,000 from the funding program can help you establish the foundation of your small or startup business. Small Business Administration is not directly involved in this funding program; they are run by third-party lenders. On average, this loan program gives $13,000, and the amount is adequate to cover short-term expenses.

  • SBA Community Advantage Program

    SBA Community Advantage Program gives funds to business owners who wouldn’t qualify for a traditional loan. This program gives a perfect opportunity to get more than $200,000 from SBA 7(a) loans backed up by the government. Minority business owners can invest money in their businesses and earn more profit. SBA Community Advantage Program is open for small business owners who don’t belong to the majority but are rejected by the traditional lenders.

  • Accion Us Network

    It is a community lender that works with major lending organizations and strives to make loan approval easier for the minority. In total, they are determined to offer $300,000 to minority business owners. Their services are well-researched; they partnered up with universities and research centers to improve the standard of the offers.

  • Union Banks

    Union banks offer a loan to small businesses and minority-owned businesses with simple underwriting, affordable interest rates, and fast funding. The funds can be used to strengthen the foundation of any business. Although Union Banks have a relaxed eligibility criterion if you don’t own 51% of your business or haven’t been running a business for at least 2 years you don’t qualify for the loan.

  • National African American Small Business Loan Fund

    Since its origin, it has offered more than $7 million to minority business owners. The low-income generating community can benefit from this offer. Most of those businesses were owned by women.

  • Business Consortium Fund Direct Loan Program

    Basically, this loan is designed for owners who are either immigrant or refugees. The only requirement is that you have to pay the loan on time and have enough financial credibility. Usually, this program offers Term Loans and Line of Credit ranging from $75,000 - $500,000.

Grant For Business Owned By The Minority

If the above-mentioned funding programs don’t satisfy your financial needs, maybe grants, are the best option for you. In the case of grants, an owner is not obligated to repay the money. But grants have to be consumed in a restricted manner; an owner doesn’t have liberty. Some commonly used grants are:

  • Grant Programs to Benefit Minority Health Communities

    If you are working in the health and medicine sector and are a minority then you can benefit from this program.

  • Rural Business Opportunity Grants

    This program gives up to $100,000 so that you can speed up the profits of your business. This grand is only confined to minority-owned businesses in rural areas.

  • Water & Waste Disposal Loan & Grant Program

    This grant wasn’t specifically designed for minority-owned business. But you are a minority and are working on a project in tribal areas then you can apply for this grant to construct a functional and long-lasting Water and Waste Disposal system.

  • Power

    POWER stands for Partnership for Opportunity, Workforce, and Economic Revitalization Initiative. This program was initiated by President Obama and it offers grants to companies that want to succeed in the above mentioned domains.

    If you fulfill its criteria, and you think this grant will meet your needs then by all means, apply away!

  • First Nations Development Institute

    First Nations Development Institute Grant is for Native Americans who are working in the arts and culture sectors. You will easily access this grant if you have an established project. This funding program is open for organizations that support Native American artists as well.

    If none of the above-mentioned funding options satisfy your need, have a look at these two options:

    Improving Minority Health Grant
    Entrepreneurial Assistance Program

Analyze the needs and requirements of your business and apply for one.

Alternate options for Minority Business Loans

Some minority businesses might benefit from loans and grants while others still need some alternative financing and funding option. Here are a couple of other funding options you can explore:

  • Invoice Financing

    Every business, regardless of whom it is owned by, has some outstanding invoices. You can earn some cash by offering those unpaid invoices to the lender. Your lender of the factor will front you approximately 80% of the worth of pending invoices. Once the remaining payment has made, the lender will lend the remaining cash. Please note, the lender will subtract service charges other fees.

  • Business Credit Card

    Lenders who are rejected by traditional lenders often fund their business using business credit cards. As compared to other funding options, small business credit card has a higher credit limit and they come with multiple rewards and benefits. In addition to this, these come with low APR and better transfer promotions. The qualification criteria vary from issuer to issuer. Some will solely ask for your security number while others will need a federal employer identification number and financial documents. Use the small business credit card for your benefit and earn more profit.

  • Business Line of Credit

    Running a business as a minority can be tough at times and business line of credit can be used to cover short-term financial needs. Revolving line of credit will give you access to never-ending credit as the credit comes back in your account when you repaid it all. The range of credit that is offered here is far higher than the rest of the funding options.

    Apply for the one that will take you out of financial problems.

Some minority businesses might benefit from loans and grants while others still need some alternative financing and funding option. Here are a couple of other funding options you can explore:

Final thoughts

A survey of 2018, stated that 45% of small business owners belong to minority and a significant 400% rise is found in business ownership as compared to previous years. What is the main reason behind this dramatic increase? Since alternative lenders, business funding associations and business grant providers have opened their doors and considered the hard work of minority business owner, the trend has shifted remarkably.

Considerable evidence is available on how providers have been unjust to the black and Hispanic community in the past. They tend to ask more questions and demand more authentication to assess the financial standing and credibility of African-American business owners. To be fair, they lack in the financial domain because they haven’t been offered the same services as white business owners. But now that 45% of America’s small business industry is owned by minority, government, banks, and alternative lenders are offering better financial help.

So, you must evaluate your business needs prior to applying for a minority business loan. The lending programs will segregate you in multiple sections depending on your ethnicity. Lastly, if your business is certified by Minority Business Enterprise (MBE) or Disadvantaged Business Enterprise (DBE) you are all set to apply for a loan.