Minority business owners have a lot of options when it comes to funding their business. From women and blacks to LGBTQ, Hispanic, Asian or Alaskan, minority owners who are registered can get a diverse set of loans from federal, state and local governments or from alternative lenders.
Economic deprivation, inequality or being sidelined are just some of the challenges faced by minorities. To ameliorate the situation, a variety of business loans for minorities are available with customization. To quality, the first requirement is to have a majority presence in the business, and get registered a minority business or a disadvantaged business enterprise.
The SBA 8 (a) loan is meant for underprivileged groups and gives them equal opportunities. The business seeking funds should have 51% of its staff belong to groups who have faced financial deprivation caused by social and economic biases and injustice.
Another loan scheme is the SBA Community Advantage Program. This scheme offers aid to businesses which could not get a conventional loan due to lack of qualifications. The scheme can disburse over $200K in loans from the 7 (a) program. Any minority business owner rejected by conventional lenders can apply to this scheme.
Minority businesses can also apply for lines of credit. This ensures fast cash whenever needed for short durations, but at higher cost. For minorities, some lines of credit do away with minimum credit scores, but may still ask for a minimum revenue and duration in business.
Minorities also have the option to apply for business grants, which need not be repaid. These are grants for people from a specific race, or based on gender, location or status, and offered by special groups and organizations.