Asians, Blacks, Hispanics, or Native Americans are classified as minorities in the United States, at least, in the categorization of businesses in the country. The number of minority-owned small businesses in the U.S. has witnessed a steady growth in the past decade with the U.S. Census putting the growth at 11.1 million in 2017. This represents a 79 percent increase between 2007 and 2017. However, it is worth noting that the amazing figures coming out from minority-owned businesses do not discount the reality – minority business owners do not get equal access and opportunities, especially for securing financing.

Thankfully, there are quite a number of funding programs designed to help minority business owners as highlighted as follows:

Small Business Administration (SBA) Loans for Minorities

According to an investigation done by the SBA, “the minority group made up of Black and Hispanic business owners was significantly less likely to have their loan applications approved, compared with their White counterparts.”

The SBA has several lending programs ideal for small businesses particularly those that are minority-owned. These programs are SBA 7(a) loans, SBA 8(a) Business Development program, SBA Microloan program, and SBA Community Advantage loans.

Lending Programs for Minority Business Owners

There are also several lending programs designed specifically for minority business owners. These programs include Business Center for New Americans (BCNA), Minority and Women Revolving Loan Trust Fund Program, Union Bank’s Business Diversity Lending Program, and Business Consortium Fund loan (The BCF loan program).

Resources and Grants for Minority Small Businesses

Minority small businesses also get to enjoy resources and grants from several institutions, including Minority Business Development Agency (MBDA), Operation HOPE Small Business Development Program, and National Minority Business Council.

Considering other funding options

While there are several financing options and minorities loans, most people that fall into this category do not have the time to wait for these options. With many of them requiring lots of paperwork and lengthy applications, business owners sometimes have to consider alternative lenders to meet the financial needs of their businesses.

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