How to Get Small Business Loans for Minorities

You can get funds for your business through a number of organizations that assist minorities.

Getting a loan may seem like a daunting task no matter what the circumstances or who you are. If you are a minority seeking a small business loan, you should know that there are organizations -- both private and government-run -- that specifically help minorities find funding for their business. For women and minority entrepreneurs who are worried that they will find it more difficult to get funding because of their minority status -- or who simply just want to learn if there are loans they can capitalize on -- there are a number of places that will help you get a minority small business loan.

Instructions

1. Check with the U.S. Small Business Association. The SBA is a government organization that works to help small businesses get funding so they can succeed at their business ventures. You should take a look at the different loans they offer; they typically offer low to no interest small business loans for minorities.

2. Visit the websites of other organizations designed to help minorities with starting a new business, such as the National Minority Business Council, the Minority Business Development Agency and the African American/Black Business Association. These organizations can provide resources for finding a financial institution that will provide you with a minority business loan.

3. Draft a detailed business plan, do market research and create an estimated budget. Make sure you are able to readily and clearly express the products or services your business will offer, who your customer base will be, how much you expect to make per year and the expected costs of your business. When looking to get small business loans for minorities, you should be able to impress your prospective lender and show that you are responsible and professional.

4. Make sure your credit report is in good shape. If you have any outstanding accounts or marks against your credit, work to get them cleared up. If necessary, take the time to improve your rating before filling out and submitting a loan application.

References

• U.S. Small Business Administration: Minority Owned Businesses
• Forbes; Small Business Loans For Minority Entrepreneurs; Mary Crane; January 2007

Resources

• National Minority Business Council
• Minority Business Development Agency
• African American/Black Business Association