Lack of funding is a major barrier to growth for Black, Latino and women owned businesses. The good news is, there are several small business loans for minority women and programs specifically designed to help level the playing field when it comes to securing financing for a new or growing business.
Grants are free funds that you don’t have to pay back with interest, which makes them a highly desirable alternative to traditional business loans for minorities and women. But, you should be aware that grants are usually offered with a limited amount of money and competition is fierce. You should also be prepared for a long application and evaluation process.
Unlike loans that require you to have strong credit history or annual revenues, business grants are often offered with no such requirements. This makes them a great option for new and small companies that have yet to build up their business profiles and have not had time to establish a good credit record.
There are a number of national business loan programs that offer financial assistance to minorities and women, including the Minority and Women Revolving Loan Trust Fund program administered by Empire State Development, Union Bank’s Business Diversity Lending Program, and California Finance lender loans. Additionally, many nonprofit lenders, such as Kiva, work on a social lending model and provide loans for entrepreneurs with low to no credit.
Another option is community-based lenders, such as the New York City-based Accompany Capital. The organization provides capital, classes and extensive one-on-one counseling for low to moderate income female minority business owners. small business loans for minority women