Minority
small business loans for small business owners
There are many
small business loan programs that are designed specifically or that cater especially
to minority businesses. Minority businesses have many options when comes to find
minority small business loans. Ethnic minorities and women are entitled to funds
that are earmarked for minority business development. There are many government
organizations and private businesses allocate funds to lend to minority business
owners. These organizations include the Minority Business Development Agency(MBDA),
the Small Business Association(SBA), Wells Fargo, and many investment companies.
The MBDA is a federal agency that has been created specifically to foster
the establishment and growth of minority businesses. This agency provides funding
for a network of Minority Business Development Centers(MBDCs), Native American
Business Development Centers(NABDCs), and Business Resource Centers(BRCs) located
in the United States. The minority centers give minority entrepreneurs personalized
assistance in writing business plans, marketing, management and technical assistance,
and financial planning to secure financing for their business ventures. Minority
small business loans are plentiful, but minority business owners will have to
do extra work to acquire one. The business owners must put together a loan application
package, which can be difficult, and may require additional help. Small business
development corporations are available almost everywhere, and provide assistance
to business owners that need additional help putting together a loan application
package.
Some of these agencies also provide minority small business loans
to applicants who have been denied for regular bank loans. The SBA is a government
agency that offers loans to all kinds of small business, especially minority businesses.
It is one of the best options for minority business owners, although they don't
offer grants to start or expand a small business. However, the SBA does guarantee
loans for starting a small business, which may extend to $250,000. After getting
approval for a SBA-guaranteed loan, the business owner must find a lender that
is approved by the SBA. Many banks are potential lenders of an SBA loan, but eligibility
requirements vary among lending institutions. Bank of America has been sited as
one of the top-ranked lenders to minority businesses.
Wells Fargo is a
bank that is also known for its many minority small business loans. The bank has
pledged to lend a billion dollars to African-American, Latino, and women-owned
businesses. There are some qualifications that may exclude many small minority
businesses, but these qualifications are used to ensure that the best businesses
are funded. The loan qualifications, include having a profitable business, being
in business for at least two years, having good personal and business credit records,
and the owner should not have declared bankruptcy in the past ten years. Wells
Fargo offer lines of credit to small businesses that start at $5,000 and go to
as much as $100,000. Small business investment companies(SBICs) are also a great
option for business owners seeking minority small business loans. SBICs are privately-owned
and managed investment firms that offer venture capital and startup financing
to small businesses. These agencies are licensed and regulated by the SBA, and
the SBA may even recommend these agencies to minority business owners.