Minority community based small businesses have special loans, grants and financial aid facilities to help them overcome systemic biases and historical inequality. Minority owners, and these could be blacks, Asians, Hispanics, women, or from the LGBTQ groups, can apply for financial aid after proving their minority identity.
Since minority communities have faced persistent and well entrenched biases, the same may hinder them getting quick loan approvals from institutions and banks. These hurdles have led to the emergence of several special avenues, programs and platforms where minorities can get loans without discrimination.
To qualify as a minority run business, it should have at least 51% of its staff hailing from a disadvantaged group. These are the communities that have experienced historical inequality and injustices on social and economic front. After gaining certification as a minority run business, it can then apply for exclusive loans, grants and financial aid.
The government in the US actively promotes minority small businesses at all levels. Special loans and schemes are available at the federal, state and local levels for many underprivileged or minority groups. The SBA 8 (A) scheme offers financial aid to all registered minority communities. Another program is the SBA Community Advantage, which can be applied for by those who could not get institutional loans due to failing to meet the criteria.
Minority businesses can also approach organizations and special groups which offer financial assistance exclusively for their benefit. Alternative financial services too are worth exploring, as they may have flexible and low criteria for qualification or special programs of assistance. Minority run businesses can get relaxed norms related to credit scores, years in operation or annual revenue.
There are many handy guides on how to get a loan as a minority which offer further information on receiving financial aid as a minority run business.