How to Get Small Business Minority Grants and Loans

In a troubled economy, there are still real opportunities for new small businesses to succeed. The key is to start a small business without investing too much, so your risk is lower. If you are in a minority group, you may be eligible for small business minority loans that can help launch your business and bring in an income. As for grants--read on to find out about those, too.

Difficulty: Moderate

Instructions

1. Decide on a business opportunity that has the potential to be lucrative. Seriously consider an Internet home-based business that allows you to start up with relatively low costs.

2. Beware of scams claiming that you can get free small business minority government grants. There are grants available for entities that offer support to small businesses, but government grants offered to individuals are not for starting a business or growing a business, but for non-profit enterprises or for research into a new technology that might benefit society at large. If your business idea is for-profit, your chances of getting a small business minority grant are slim. Consider applying for government loans or business loans instead to help launch your business.

3. If you are a good candidate for a government grant, search for one you are eligible to apply for. Make sure to apply before the annual deadlines, which vary according to which small business government grant you're applying for. See the Resources section for a link to the U.S. government's website for grants. You'll need to prepare a grant proposal, including what you are trying to achieve as well as your anticipated budget. Be aware that grant money is incredibly competitive to get.

4. Check with the Small Business Administration (SBA) for information on government loans and start-up capital for small business entrepreneurs. Look for regular business loans as well as those targeted toward minorities. You may be able to take advantage of programs such as HUBZone or the 8(a) Business Development Program.

Tips & Warnings

• Consider also small business loans targeted toward veterans, women, young business people, older business people, and others who the SBA has determined are in groups that experience opportunity ceilings or barriers.

Resources

• US Government's website for grants