How to Apply for Minority Small Business Loans

Minorities should check federal and local organizations for loan assistance.

Minorities face many unique hurdles to overcome in becoming successful business entrepreneurs. In recognition of this reality, the federal government and many local organizations throughout the U.S. are dedicated to helping more minority-owned businesses become successful through small business loans. Whether your company is already in business and needs an injection of capital or this is your first business, you may have the opportunity to benefit from these types of loans.

Instructions

1. Look for federal programs you can utilize for assistance in securing a business loan for your company. Contact the Minority Business Development Agency, a federal agency dedicated to the success of minority-owned businesses. Request assistance in finding resources, writing business plans, and developing financial planning to help you prepare a successful loan application.

2. Contact the Small Business Administration (SBA) to see if you qualify for one of their minority business loans. The SBA guarantees business loans up to $250,000 and works with national banks to help fulfill institutional lending goals for minority entrepreneurs. Some requirements may include proving the profitability of the business, a good credit history, and no bankruptcies in the past 10 years.

3. Search for local funding for minority-owned businesses. Local organizations throughout the country are dedicated to encouraging minority businesses in specific economically depressed areas, as well as those individuals belonging to specific ethnic groups. Organizations such as these offer substantial loans to minority businesses each year. Check with community development centers in your area to find out about local business resources for minorities.

4. Follow the instructions included with loan applications carefully. Mistakes or missing items can be the difference between the success or failure of your application. Ask for assistance from SBA counselors if you need help with your applications. Have a friend or business associate check your applications for errors before turning them in.

References

• Entrepreneur: Minority Loan and Grant Programs
• All Business: Minority Business Loan Programs