Things You'll Need:
- all documentation listed in section two
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Step 1
Do some research to find out what kind of financing is out there specifically for minority businesses. The federal government earmarks funds specifically for minority businesses (including women). Resource centers located throughout the country are available to to provide personalized assistance in writing business plans, marketing, management and technical assistance, and financial planning to secure adequate financing for business ventures.
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Step 2
Check out your local community to see what resources are available. Also try ethnic specific lending organizations such as the U.S. Hispanic Chamber of Commerce, whose ¡Capital! loan program has made a commitment to lend more than $1 billion over the next five years to small businesses in high-growth Hispanic markets. For Native Americans, South Dakota-based First Nations Oweesta Corporation also makes loans, but only to qualified Native community development financial institutions who then go on to lend to individual Native American entrepreneurs.
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Step 3
Consider Wells Fargo, which is a good lending partner and has promised to lend $9 billion to Latino, African America and Asian businesses by 2012.
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Step 4
Check out the National Minority Business Council's Micro-Loan Fund which provides short-term loans of $1,500 to $25,000 to its members. The council has also launched its Emerging Enterprise Investment Committee, which makes equity investments from $250,000 to $5 million to qualified women-owned or minority-owned businesses.
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Step 5
Consider the National Minority Supplier Development Council which matches more than 15,000 minority-owned businesses with 3,500 corporations who want to purchase goods and services from them. The council also offers loans to participating small businesses through its Business Consortium Fund.
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Step 1
Make sure your credit history is in good standing. This is a very important factor in showing what your payment history is. Generally, except for a bankruptcy, federal or state lien, credit can be repaired or explained, depending on the financial institution's policy.
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Step 2
Gather up your documentation. Although each lending institution has its own required documentation, there are some basics you'll need for all of them. The first is the loan application. At a minimum, the loan application requires business and personal information, the amount, purpose and banking information (checking account). The purpose must be specific and supported with appropriate documentation.
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Step 3
Provide copies of your business and personal income tax returns for the past three years (must be signed). The lender will confirm the accuracy of the data with the IRS.
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Step 4
Prepare a business plan and projections (which are generally required for start-up businesses, term loans or other special conditions). This is another very important indicator of whether or not a company will want to lend to you. The business plan gives the lender an idea of just what kind of businessperson you are. The more detailed the plan is, the better. This will help the lender determine how much of a risk your business is so make it as specific as possible.
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Step 5
Include company financial statements for the past three years. You will also need to include personal financial statements.
