Women and minority still face challenges when attempting to start their own businesses. There are avenues available for these groups if they look in the right places. Whether they are starting a business or looking to infuse life into an existing business, funds are available for just about every need. Here’s how to apply for a minority loan.
Contact the Minority Business Development Agency. This is a government organization designed to address the needs of women and minority business owners. Owners that fit the criteria should find out all the resources available through MBDA.
Make sure personal and business credit are in order. When applying for loans, it is crucial that credit scores meet the minimum standards for a loan. Organizations like American Loan Search are great places to start in order to repair credit.
Determine the type of loan desired. Loans can vary from Basic 7(a) SBA loans to micro loans. After reviewing the requirements of each loan, decide which one will best serve the minority business.
Keep records of a loan application approvals and denials. This will come in handy later when and if certain applications require records of denials in order to be eligible for the loan. This is often the case with SBA loans.
Join online message boards designed to discuss minority businesses. Often other minority owners will be able to offer tips on pitfalls to avoid and best kept secrets for applying for minority business loans.
Seek venture capital. Venture capitalists are not all billionaires looking to invest millions into the next dot com explosion. Many are everyday investors looking for sound businesses to invest in. A good investor will be concerned with a sound business plan and pay little to no attention to minority status.