Business Grants for Hispanics
The Small Business Administration (SBA) understands that certain minorities have a disadvantage when starting and operating a business. So it has a number of programs that assist Hispanic American-owned businesses to compete. These programs include the 7(a) Loan Program and 8(a) Business Development Program.
In addition, there are private programs like the Hispanic GovCon Network.
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The 7(a) Loan Program
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The 7(a) Loan Program is a source where start-up and existing businesses can get funds if they do not qualify for business loans through traditional methods. The SBA does not make the loans. Instead, it guarantees a portion of the loan made by a commercial lending institution. Most banks in the country participate in the program.
The loans can be used on general business issues including working capital; acquisition of machinery and equipment, furniture and fixtures, land on which to build an office and purchase of a building.
The 8(a) Business Development Program
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The 8(a) Business Development Program assists economically and socially disadvantaged businesses. Services are provided over a nine-year period and include developmental analysis, counseling, management and technical assistance and consideration to participate in business development opportunities offered through Section 8 of the program. Businesses that are certified as 8(a) companies are provided with certain advantages in the seeking of government contracts. The SBA classifies Black Americans, Hispanic Americans, Native Americans, Asian Pacific Americans and subcontinent Asian Americans as socially disadvantaged. Economically disadvantaged individuals are socially disadvantaged individuals who have difficulty competing in the marketplace due to a lack of capital and credit opportunities.
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Who Qualifies
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In order to qualify for a 7(a) loan, the business must be for profit and operating in the United States; meet the SBA size standards for a small business; be an eligible type of business; will use the funds in an approved manner; not have funds available through other sources; show the ability to repay the loan; show management expertise and commitment to success; show a feasible business plan; and the owner must prove he is of good character.
To qualify for an 8(a) loan, the applicant must show social and economic disadvantage; proof of ownership control and management; satisfy size standards, and show a potential for success. The Office of Hearings and Appeals of the SBA decides who fits the requirements.
How to Apply
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Applying for an 8(a) certification can be done on the SBA website. The site uses analytical tools to assist managers in making decisions quickly and accurately. Once certified, the business must return to the site each year to update information and complete annual review forms.
A business seeking a loan through the 7(a) program must apply with a lending institution that is a member of the program. Most banks in the country participate.
What is the Hispanic GovCon Network
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The Hispanic GovCon Networking organization includes Hispanic-owned businesses that are government contractors and large prime contractors as well as federal government managers. It assists Hispanic-American businesses to form partnerships with one another so that they can seek government jobs that each could not get on their own.
The group organizes networking events, seminars, training and other programs. It also offers consulting services, business development support, marketing assistance, a jobs board and other services. It also help connect members to partners and supporters, including banks, insurance companies, staffing firms, non-profit groups and more.
Membership is divided into a "Premier" category, which is for larger businesses; and a "Basic" category, which is for smaller businesses. It is revenue that determines which category a business falls. Member companies must be in existence for a certain number of years.
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- Photo Credit Image by Flickr.com, courtesy of Lee Chisholm
