Business Grants for Minority Women

Business Grants for Minority Women and So Much More

Are you a minority woman in business? Or are you starting a business? Money is always going to be an issue. What if you could get what is essentially free money? That’s what grants are – for the most part. So it would behoove you to look into business grants for minority women.

Business Grants for Minority Women and More Funding for Minority Businesswomen

How do you find the best options for you? How do you know if you need to be looking for grants or business loans for minority women? We recommend that you explore every option. This is because it will probably take a combination of funding options to fully fund your business.

There are business loans for minority women. But they’re often not for them exclusively. But there are other funding choices out there. Loans, crowdfunding, and even angel investors are all viable options. More on those later.

Business Grants for Minority Women

The government and private organizations want to GIVE you money! They’re highly competitive and rarely enough to fund a business on their own. Still, grants are a great way to supplement other business funding. And they are still worth the effort to apply. There really isn’t anything to lose except time – it’s free money. Here are a few you can start with.

Amber Grant

The Amber Grant awards one prize of $10,000 per month to a woman-owned business. One of the recipients also receives an additional $25,000 grant at the end of the year. Applicants only need to tell their story and turn it in with a $15 application fee. See ambergrantsforwomen.com/get-an-amber-grant/apply-now.

Cartier Women’s Initiative Award

This award is for women but there’s no specification that a woman be a member of a minority group. The Cartier Women’s Initiative Award has a regional category award and a science and technology award. The regional award is $100,000 for first place, and $30,000 for second and third place.

The award goes to three women from each of seven international regions. This award is a grant to 21 female business owners from around the world each year. Women business owners who are just getting started may qualify. Look over the complete application for more information. See cartierwomensinitiative.com/about-us.

The Cartier Science and Technology Pioneer Award

The Cartier Science and Technology Pioneer award is new as of 2021. With this award, three more women impact entrepreneurs at the forefront of scientific and technological innovation will get recognition. Open to women entrepreneurs from any country and sector. This award will highlight disruptive solutions built around unique, protected, or hard-to-reproduce technological or scientific advances. The laureate will get a $100,000 grant. Each of the two remaining finalists will get a $30,000 grant.

Cartier Fellowships

Cartier also offers a fellowship program. The fellowship is an educational program geared towards the 24 fellows selected each year. The fellowship program aims to equip the fellows with necessary skills to grow their business. And it helps them to build their leadership capacity. It does so by drawing upon the experience and expertise of many academics, practitioners, industry experts, and entrepreneurs.

The fellowship isn’t exactly a grant. But while it’s not a monetary award, the mentoring and networking opportunities could be worthwhile to apply for. See cartierwomensinitiative.com/fellowship-programme.

Business Grants for Minority Women – Black Women

National Black MBA Association Scale-Up Pitch Challenge

Also known as NBMBAA, the Scale-Up Pitch Challenge has cash prizes from $1,000 to $50,000. The association’s purpose is to help newer businesses with African American ownership. This is a pitch competition for startup businesses. See nbmbaa.org/scale-up-pitch-challenge.

The Minority Business Development Agency

The US Department of Commerce runs the Minority Business Development Agency (MBDA). It works to help minority-owned businesses get the resources they need to grow and succeed. The MBDA is not just for women. Grant competitions are regularly changing.

Visit the MBDA’s website for info on all current opportunities. Currently, the MBDA helps its members apply for grants via Grants.gov. This involves help with how to apply for government grants. See mbda.gov/grants.

The MBDA oversees the Enterprising Women of Color (EWOC) Initiative. The initiative focuses on the fast-expanding minority women entrepreneur population as a revenue generators for families, communities, and the nation. Minority women are the fastest growing population of entrepreneurs. While many women are making tremendous strides in the business world, they still face obstacles as entrepreneurs

MBDA is an advocate for women’s economic empowerment. They support efforts to advance women’s equality and promote women economic advancement programming. The vision of EWOC is to ensure women worldwide reach their economic potential. See mbda.gov.

The Verizon Small Business Recovery Fund

The Verizon Small Business Recovery Fund is new. It is in response to the COVID-19 pandemic. The fund offers $10,000 to successful applicants. The fund specifically focuses on providing grants to business owners of color, women-owned businesses, and other underrepresented entrepreneurs. See lisc.org/covid-19/small-business-assistance/small-business-relief-grants/verizon-small-business-recovery-fund.

Business Grants for Minority Women – Native Americans

First Nations Development Institute Grants

The mission of this group is to offer grants that help Alaska Natives, Native Hawaiians, and Native Americans. These grants are for any gender. So you would be competing against Native Hawaiian, Alaskan, and Native American men. They help in the application process in addition to funds.

First Nations also helps point individuals to appropriate grants offered by other organizations, including the US government. This includes help with writing grant proposals. See firstnations.org/grantmaking.

The Native American Business Development Institute (NABDI) Grant

The NABDI Grant is funded by the US Department of the Interior’s Bureau of Indian Affairs. It is not just for women. It provides funding to business owners of Native American or Alaskan Native descent. In 2019, the program provided more than $727,000 to 21 indigenous tribes. So this was to support economic feasibility studies for specific economic development projects or business startups.

For 2020, NABDI planned to award 20-25 grants. There is no minimum or maximum amount of funding you can request. But most awards range $25,000 to $75,000. They only fund projects for one year at a time, which is when they expect projects to be completed. To apply for a NABDI grant for your proposed economic development feasibility study, go to bia.gov/service/grants/tedc/apply-nabdi-grant.

Indian Affairs

There is more available via the Bureau of Indian Affairs. Businesses owned by Native Americans can get financing from the federal government through the Indian Affairs branch. These are not just for women. An individual can fill out an application for up to $500,000. But business entities and tribal enterprises may apply for more.

Potential borrowers can apply with any lending institution, they just have to use the application for Indian Affairs. Additional requirements are in place if the funds are used for construction, renovation, or refinancing. In general, you must supply a list of collateral, a credit report, and an analysis of business operations. See bia.gov/as-ia/ieed/loan-guaranty-insurance-and-interest-subsidy-program

Business Grants for Minority Women – Asian Woman

The South Asian Arts Resiliency Fund

If your business is in the arts, and you’re of South Asian descent, then check out this fund. The fund is operated by the India Center Foundation. It is designed to support US-based South Asian arts workers impacted by the COVID-19 pandemic

The fund will disburse grants up to $2,000, depending on financial need to US-based arts workers of South Asian descent. This includes those in the performing arts, film, visual arts, and literature. It’s for people with heritage from Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. Initial funding for the program is $20,000. But the India Center Foundation is soliciting donations to expand the grant program.

Applicants must be of South Asian descent, work in the arts and demonstrate loss of income due to COVID-19. Additionally, applicants must be at least 21 years old. You can’t be enrolled in a degree program. Plus they must be able to receive taxable income in the US. Grant funding can go toward any artistic project you can develop, create, and present within 4-6 weeks of getting funding. See theindiacenter.us/artsfund.

Business Grants for Minority Women – Grants for All

Grants.gov

The federal government gives out grants to all genders and all races. Grants.gov is a running list of over 1,000 available government grants. So this includes minority business grants. The website compiles grants from more than two dozen government agencies. These are agencies like the SBA, USDA, and the US Department of Commerce. To find grants right for your business, use the Search Grants tool on the site. Sort the list of grants by keyword or opportunity number.

Once you have located the grant you wish to apply for, click the hyperlinked opportunity number for more detail. There, you will find more information about the specific grant as well as any associated documentation you might need. To apply for a grant through Grants.gov, you must first register. Then, you will be able to download an application package for the grant you want. Be ready for a lengthy process. See grants.gov.

More Types of Funding

Crowdfunding

If you’d rather not rely on grants so much to start and run your business, crowdfunding is a viable option. Still, not everyone with a campaign on a crowdfunding site is successful. This is because more unique products and services tend to do better. Kickstarter and Indiegogo are two of the most popular crowdfunding platforms to use. Some platforms may have higher success rates for women than others.

Angel Investors

Angel investors are informal investors. So essentially, you are selling a part of your business to them. They tend to not want a huge percentage of your business. And they won’t pass by more conventional businesses, like with crowdfunding and venture capital. Hence they can be another supplement or replacement for grants.

Business Center for New Americans

If grants aren’t an option, loans might work. So if you’re an immigrant, try the Business Center for New Americans. They offer a pilot program for microloans up to $75,000. They work with immigrants, refugees, women, and other minority entrepreneurs. The goal is to help minority business owners who have not been able to get traditional financing. Terms are 3% interest. Loan repayment term goes up to a year. See accompanycapital.org.

Business Grants for Minority Women: Takeaways

So there are several options for grants for minorities and for women. Minority women should apply for grants they feel they are most likely to get. Other options for funding include crowdfunding, angel investors, and loans. Credit Suite can help you get the funding you need.

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Minority Business Loans Bad Credit: What Can You Do?

In a recently reprinted MBDA study “Disparities in Capital Access between Minority and Non-Minority-Owned Businesses: The Troubling Reality of Capital Limitations Faced by MBEs,”

Robert Fairlie, Ph.D. and Alicia Robb, Ph.D. looked at both national and regional studies over several decades. They discovered that limited financial, human, and social capital, as well as racial discrimination, were the major reasons for the disparities between non-minority and minority businesses. Despite the fact that this study is 10 years old, many of the truths remain today.

When It Comes to Minority Business Loans, Bad Credit May Haunt You

Forbes states that the major challenges faced by minority business owners in getting business funding include:

Lower Net Worth

For example, the level of wealth for Latino and African Americans is 11 to 16 times lower than for whites. Caucasian business owners usually have more working capital when they start a business.

Lack of Collateral

As a general rule, banks are less likely to approve loans to applicants with lower valued collateral to use against a loan. Less net worth means less home ownership and fewer high-value assets to sell if a loan defaults. Less security and net worth mean banks are likely to issue smaller loans that need to be paid back quickly. This slows growth over the long term.

Poor Location

Businesses owned by minorities in locations that have not supported new business in the past are not as likely to get funding.

Little to No Credit History

Credit is a huge factor for banks when considering loan applications. This is why minority business loans bad credit are so scarce. Since minority business owners tend to have lower credit scores, for all the reasons already listed, it is harder to get the best rates and terms.

That last one is what causes huge issues. Minority business loans, bad credit or not, are not easy to find. More often than not, the key is to look for loans with less strict credit requirements while simultaneously working to build fundability.

Minority business Loans Bad Credit: First Things First

Before we focus on how to find minority business loans bad credit, we need to talk about fundability as a whole. The first step is strong personal credit. However, you can work on other aspects of fundability at the same time. When you do this, you increase your chances of getting any type of business funding you may ever need. How do you build fundability?

Set Your Business Up to Be Fundable

When you set up your business, you need it to have a foundation that will help build fundability and separate it from you as the owner. Even if you are already in operation, you can take the steps necessary to do this. However, the sooner the better, for a number of reasons. What does it take to build a foundation of fundability?

Separate contact information

Your business needs its own phone number and address.

An EIN

This is free on the IRS website.

All necessary and appropriate licenses

If you are not properly licensed to do what you do, lenders will not take you seriously. This step is necessary to being a legitimate business.

Incorporation

There are many reasons for this. However, for business credit building, the main thing is it separates your business from you as the owner even further.

A D-U-N-S Number

This is free to get on the Dun & Bradstreet website. You must have one to have a business credit profile with D&B.

Separate Business Bank Account

There are many reasons to do this. The main one for building credit building however, is that it further solidifies your business as a separate entity.

Professional website

This surprises a lot of people. These days, if you don’t have an online presence, you might as well not even exist. Still, a poorly put together online presence is just as bad. Pay for professional design and hosting. It’s worth it.

Work on Building Business Credit

When we talk about minority business loans bad credit, we are talking about bad personal credit. However, there is such a thing as business credit.

Even though most lenders will still take personal credit into account, separate business credit allows them to judge your business on its own merits. If they can see that, despite some personal credit issues, you have strong business credit, it may sway them if they are wavering on approval.

In addition, business credit opens up new funding doors that are not available to individuals, which in turn can only help you run and grow your business.

Minority Business Loans Bad Credit: You Need Accounts Reporting to Your Business Credit Report

What you want to do is make minority business loans bad credit a non-issue. In reality, you just need bad credit to be a non-issue. The key to this, when it comes to business credit, is to get accounts in your business’s name that do not really take your personal credit into account. It may feel like it is impossible, but it isn’t. There are a few ways to do it.

First, vendors you already have a relationship with may be willing to extend credit without a credit check. The worst that can happen is they say no. If they say yes, ask them to report the payments to the business credit agencies.

Utilities might also report accounts. You already pay utilities, rent, and internet each month. Ask those providers to report your payments to the business credit reporting agencies. Be certain your accounts are set up in your business name with your business contact information. Worst case scenario is that they say no. It never hurts to ask.

Work with Starter Vendors

This is the secret that many business owners are unaware of. We call them starter vendors. They are part of the vendor credit tier. Certain companies that will extend Net terms in your business name without a credit check. After you pay, they will report those payments to the business credit reporting agencies (CRAs).

Since they do not check your credit score, it doesn’t matter that you don’t have one. Of course, they do have other ways of reducing risk. These vary by vendor. They may include a minimum time in business, average balance in a business banking account, or even a minimum annual revenue.

Minority Business Loans Bad Credit: What Next?

After you have enough of these types of accounts reporting payments to your business credit report, you probably have a strong enough score to move on to the next tier. We call this the retail credit tier. They offer more traditional credit. These are credit cards for use at specific stores such as Office Depot or Lowes. It is also sometimes referred to as store credit.

After you have several of these store credit accounts reporting, you can apply for cards in the fleet credit tier. These include gas cards with companies such as Shell and Fuelman. They can be used for fuel and auto repair and maintenance only.

Lastly, with accounts reporting from all previous tiers, you should have a score strong enough to apply for cards from what we call the cash credit tier. Of course, that is only if you have been making payments consistently on time.

These include traditional credit cards that are not connected to a certain store or type of purchase. They can be used for anything and everything. In addition, they often have better interest rates and nice rewards programs.

Fix Your Personal Credit

Making sure your business has strong business credit is important to fundability, but personal credit still matters. There are many business loans that will still require a personal credit check. Take the time to go through your personal credit report and look for mistakes. If you find any, get them corrected. At the same time, make payments on time, consistently. If you find yourself with any extra cash, throw it on higher rate balances first. Then, when that balance is gone, use the entire payment amount on the next highest rate balance. It’s called the snowball technique, and you’ll be surprised how quickly you’ll pay off balances and see credit score improvement.

Minority Business Loans Bad Credit: In the Meantime

Of course, you likely need funds right now if you are reading this. Since you can’t build or fix credit overnight, here are some options to help you in the meantime.

Accion U.S. Network

Accion offers loans in all states. Funds are available to:

minorities
veterans
women
those with disabilities
and low to medium income business owners

Typically, loan amounts start at $200,000 and go up to $300,000. Also, Accion can put owners in contact with others to help build a network of support.

Comparatively, the minimum credit score for these loans is 575. In addition, you cannot be 30 days late on paying any accounts. Lastly, you will not qualify if you have late rent or mortgage payments over the past 12 months.

Union Bank Business Diversity Lending Program

This program from Union Bank offers business loans for minorities. In fact, this one is specifically for minorities. Indeed, you must be Hispanic, American Indian, Latino, Asian, Alaskan Native, African American, Native Hawaiian, or other Pacific Islander to even qualify.

Furthermore, a business that makes up to $20 million could qualify for a loan of $2.5 million. However, you must be in business for at least 2 years. Likewise, the business must be at least 51% minority owned.

The National African American Small Business Loan Fund

This is a partnership between JP Morgan Chase and the Valley Economic Development Centers. It serves small businesses with minority owners that are in low income or medium income communities. However, only those in New York, Los Angeles, and Chicago are eligible.

Business Center for New Americans

Right now, The Business Center for New Americans offers minority business loans of $5,000 to $50,000. They work with immigrants, refugees, women, and other minority entrepreneurs. The goal is to help minority business owners who have not been able to get traditional financing.

Camino Financial

Camino Financial is an online lender. Microloans range from $5,000 to $50,000. Additionally, they offer small business loans between $10,000 to $400,000.

Minority Business Loans Bad Credit: The SBA?

Whether or not this option will work for you depends on how bad your credit actually is. If it is above 640, then you may be able to get some help from the SBA.

The Small Business Administration focuses on helping all small businesses, not just those that are minority owned. They offer a number of products and resources through their programs. For the most part, the SBA does not lend money directly. They work through partner financial institutions to guarantee loans. As a result, they are able to outsource the administration of the loans and disbursement of funds to those who do it on a regular basis. That is, lenders and non-profits that are in the communities where the businesses operate.

SBA 7(a) Loans & 8(a) Business Development Program

These loans are open to all small business owners. However, if a minority business owner participates in the SBA Business Development program, they increase their chance of getting this type of loan.

Honestly, about 80% of SBA loan applications from Hispanic and African Americans are for $150,000 or less. This is according to the SBA itself. Surprisingly, these smaller loans seem to be harder to get. Honestly, this is probably because lenders don’t make as much money from them.

SBA Community Advantage Loans

These are to meet the needs of small businesses in neglected markets. That includes minorities. The goal is to get local lenders to increase loans up to $250,000. This is done by backing up to 85% of the loan amount. The hope is that this helps small business owners who might not be able to get traditional financing.

SBA Microloan Program

First, loans through this program go up to $50,000. Secondly, funds come from a third-party lender. Usually, this consists of nonprofit organizations in the community. Often, they also offer other types of assistance to business owners along with the loan.

Minority Business Loans Bad Credit: Bad Credit Doesn’t Have to Stop You

It may detour you for a bit, but if you work hard you can fix that. In the meantime, there are options that can help you get through. Check these out, and work on building overall fundability to ensure you can access all the funding you could ever need to run and grow your business. When it comes to minority business loans, bad credit doesn’t have to be the end of the story.

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Under Cover: Sometimes Minority Owned Business Loans are In Disguise

Minority owned business loans are probably different than you think. Sometimes they are just like they sound, loans for minority business owners. Other times, they are just loans for everyone that work well for minority business owners as well.

Minority Owned Business Loans Do Not All Look the Same

Sometimes you can be so busy looking for minority owned business loans specifically that you miss the great options that will work but are not for minorities only. In a way, these loans are undercover. They are available to more business owners than just minorities. However, they work really well with the challenges that are unique to minority business owners. Here are just a few examples.

Loans from The Small Business Administration

The Small Business Administration specializes in helping all small businesses. They offer a number of products and resources through SBA programs, not just minority owned business loans. For the most part, the SBA does not lend money directly. They work through partner financial institutions to guarantee SBA government loans. As a result, they are able to leave the administration of the loans and disbursement of funds to those who do it on a regular basis. That is, lenders and non-profits that are in the communities where the businesses exist.

SBA 7(a) Loans & 8(a) Business Development Program

These loans are open to all small business owners. However, if a minority business owner takes part in the SBA Business Development program, they increase their chance of getting this type of loan.

In fact, the SBA got rid of the fee for loans that are less $150,000 to help with this.

SBA Community Advantage Loans

SBA Microloan Program

Minority Owned Business Loans: Non-SBA Loans

There are private lenders that offer loans that will meet the needs of minority business owners also, but they are not specifically minority owned business loans. One such example is Accion.

Accion U.S. Network

Accion offers loans in all states. Funds are available to the following:

minorities
veterans
women
those with disabilities
and low to medium income business owners

Typically, loan amounts start at $200,000 and go up to $300,000. Also, Accion can put owners in contact with others to help build a network of support.

Comparatively, the minimum credit score for these loans is 575. In addition, you cannot be 30 days late on paying any accounts. Finally, you will not qualify if you have late rent or mortgage payments over the past 12 months.

Minority Owned Business Loans That Don’t Wear a Mask

In contrast to the above loans that anyone can apply for, some minority owned business loans are exactly what you expect. They are designed specifically for those in minority groups to aid in overcoming the unique challenges they face in obtaining business funding.

Union Bank Business Diversity Lending Program

This program from Union Bank offers business loans for minority business owners. Indeed, this one is specifically for minorities. In fact, to qualify, you must be Hispanic, American Indian, Latino, Asian, Alaskan Native, African American, Native Hawaiian, or other Pacific Islander.

The National African American Small Business Loan Fund

This is a partnership between JP Morgan Chase and the Valley Economic Development Centers . It serves small businesses with minority owners that are in low income or medium income communities. However, only those in New York, Los Angeles, and Chicago are eligible.

Business Center for New Americans

Presently, The Business Center for New Americans offers minority business loans of $5,000 to $50,000. They work with immigrants, refugees, women, and other minority entrepreneurs. The goal is to help minority business owners who have not been able to get traditional financing.

Camino Financial

Camino Financial is a lender that operates all online. They offer minority owned business loans. Conveniently, their entire application process is online. Microloans range from $5,000 to $50,000. Additionally, they offer small business loans between $10,000 to $400,000.

Build Business Credit to Increase Your Chances of Approval with Any Loan

Business credit is a huge piece of overall fundability. The business credit building process is the same for everyone, minority or not. When you work through the process, you increase your fundability. That in turn, increases your chances of being able to get funding of all types in the future. How do you build business credit?

It Starts with the Foundation

Separate contact information

Your business needs its own phone number and address.

An EIN

This is free on the IRS website.

All necessary and appropriate licenses

If you are not properly licensed to do what you do, lenders will not take you seriously. This step is necessary to being a legitimate business.

Incorporation

There are many reasons for this. However, for business credit building the big thing is it further separates your business from you as the owner.

A D-U-N-S Number

This is free to get on the Dun & Bradstreet website. You cannot have a business credit profile with D&B without one.

Business Bank Account

Like incorporating, there are many reasons for this. The main one for building credit building however, is that it further solidifies your business as an entity separate from you the owner.

Professional website

This one surprises a lot of people. These days, if you don’t have an online presence you might as well not even exist. However, a poorly put together online presence is just as bad. Pay for professional design and hosting. It’s worth it.

These things are not only necessary for overall fundability, but they are also the first step in the business credit building process, and it is a process. It takes time, and you have to start at the beginning.

The Business Credit Building Process

Even though most lenders will still take personal credit into account, separate business credit allows them to judge your business on its own merits. If they can see that, despite some personal credit issues, business credit is just fine, it may sway them if they are wavering on approving funding.

In addition, business credit opens up new funding doors that are not available to individuals, which in turn can only help you run and grow your business.

You Need Accounts Reporting to Your Business Credit Report

The key to this is to get accounts in your business’s name that do not really take your personal credit into account. It may feel like it is impossible, but it isn’t. There are a few ways to do it.

First, vendors you already have a relationship with may be willing to extend credit without a credit check. If that isn’t happening, they might be willing to offer net 30 terms on invoices. The worst that can happen is they say no. If they say yes, ask them to report the payments to the business credit agencies.

Utilities might also report accounts to your business credit. You already pay utilities, rent, and internet each month. Ask those providers to report your payments to the business credit reporting agencies. Make sure your accounts are set up in your business name with your business contact information. Worst case scenario is that they say no. It never hurts to ask.

Starter Vendors in the Vendor Credit Tier to Help Build Business Credit

This is the business credit building secret that many business owners are unaware of. We call them starter vendors. These are part of the vendor credit tier. They are certain companies that will extend Net terms in your business name without a credit check. After you pay, they will report those payments to the business credit report agencies (CRAs).

Since they do not check your credit score, it doesn’t matter that you do not have one. Of course, they do have other ways of reducing risk. They vary by vendor. Below, we have listed a few of these starter vendors to give you an idea of what you are looking for.

Crown Office Supplies

Crown Office Supplies is a true starter vendor. They sell a variety of office supplies and take helping clients seriously. They say, “just starting your business, or maybe have an existing business, but you have a question regarding office supplies… we are here to help!” And they report to Dun and Bradstreet, Experian, and Equifax.

There is a $99.00 annual fee, though they do report that fee to the business credit reporting bureaus. For other purchases to report, the purchase must be at least $30.00. Terms are Net 30.

Grainger Industrial Supply

Grainger sells power tools, pumps, hardware and more. In addition, they can handle maintenance of your auto fleet. You need a business license and EIN to quality, as well as a D-U-N-S number.

You can apply by fax or over the phone. If you need less than $1,000 in credit, you only need a business license for approval. For over $1,000, you will need trade and bank references.

If you are just starting out and do not have references, the $1,000 is plenty to get you started building your business credit.

Behalf.com

Behalf is a way of getting paid through an app. However, they also offer funding. The more you have your customers pay you through Behalf, the more likely Behalf is to offer you favorable terms when it comes to funding.

Funding can be through purchase financing or a virtual Mastercard option. Terms run from Net 30 to 180 days, and they report to Dun & Bradstreet, Experian, and Equifax. The fact that they report to all the major credit reporting agencies makes them an extremely valuable tool in building business credit.

Then What?

After you have enough of these types of accounts reporting payments to your business credit report, you should have a strong enough score to move on to the next tier. We call this the retail credit tier. They offer more traditional credit. These are credit cards for use at specific stores such as Office Depot or Lowes. This is also sometimes referred to as store credit.

After you have several of these store credit accounts reporting, you can apply for cards in the fleet credit tier. These are gas cards with companies such as Shell and Fuelman. They can be used for fuel and auto repair and maintenance only.

These are traditional credit cards that are not connected to a certain store or type of purchase. They can be used for anything and everything. In addition, they often have better interest rates and nice rewards programs.

Building Business Credit Can Open the Door to Many More Funding Options

Looking for and applying to minority owned business loans is a completely viable option. However, do not limit yourself. Take a look at other loan possibilities that you may not even realize you qualify for. At the same time, start working through the business credit building process. Then, you’ll have many more funding options available in the future. The more funding available to you, the faster and stronger you can grow your business.

The post Under Cover: Sometimes Minority Owned Business Loans are In Disguise appeared first on Credit Suite.

Business Loans for Minority Women and Other Funding Options

As a minority woman in business, it is important to know what is available to you for business funding. Do business loans for minority women even exist? The answer is, sort of. There are business loans for minority women, but not for them exclusively. There are other funding options out there as well. Grants, crowdfunding, and even angel investors are all viable options.

Business Loans for Minority Women and So Much More

How do you find the best options for you? How do you know if you need to be looking for grants or business loans for minority women? The truth is, you need to explore every option. This is because, in reality, it is probably going to take a combination of funding options to fully fund your business.

Business Loans for Minority Women: The Truth

The thing is, there aren’t a ton of loan programs only for minority women. You are really looking for regular loans that work with the challenges faced by business owners that fit into both categories. Once you understand that, your search will become much easier.

Business Loans for Minority Women: Traditional vs. Private

As a general rule, loans from traditional lenders are both the best and the hardest to get. Their terms and rates are much better than those offered by private lenders. They also have more stringent eligibility requirements. They typically require higher credit scores, longer time in business, and more annual revenue.

Private lenders, on the other hand, work a little differently. They tend to have higher interest rates and less favorable terms. However, they have less strict requirements for approval. They allow lower credit scores and less time in business, as a general rule.

The Small Business Administration

So where do you go to find business loans for minority women? Since traditional loans offer the best rates and terms, they are truly the place to start. They are harder to get, but the Small Business Administration loan programs help make them easier. They do not lend funds directly. Instead, they work with traditional lenders. They back loans to make them easier for borrowers to qualify. You can find a list of SBA partner lenders using their lender match tool.

7(a) Loans

This is the Small Business Administration’s main loan program. It offers federally funded term loans up to $5 million. The funds can be used for expansion, purchasing equipment, working capital and more. These funds are distributed through traditional lenders.

The minimum credit score to qualify is 680. In addition, there is a down payment requirement of at least 10% for the purchase of a business, commercial real estate, or equipment. The minimum time in business is 2 years. In the case of startups, business experience equivalent to two years will suffice.

504 Loans

These loans are also available up to $5 million and can buy machinery, facilities, or land. They are generally used for expansion. Like 7 (a) loans, private sector lenders or nonprofits process and disburse these funds. They work well for commercial real estate purchases especially.

Terms for 504 Loans range from 10 to 20 years. Unfortunately, funding can take up to 90 days. They require a minimum credit score of 680, and collateral is the asset it is financing. There is also a down payment requirement of 10%, which can increase to 15% for a new business.

There is also a 2-years in business requirement. For a startup, equivalent experience for management will meet this.

Microloans

Microloans are available in amounts up to $50,000. They work for starting a business, purchasing equipment, buying inventory, or for working capital. Community based nonprofits handle SBA microloan programs as intermediaries.

Interest rates on these loans are 7.75% to 8% above the lender’s cost to fund, and the terms go up to 6 years. Similar to other programs, they can take up to 90 days to fund. The minimum credit score is 640, and the collateral and down payment requirements vary by lender.

SBA Express Loans

These loans max out at $350,000. They have a maximum interest rate of 11.50%. In addition, terms range from 5 to 25 years, and the SBA guarantee is less than it is with their other loan programs at 50%. To qualify, your credit score must be above 680. Another requirement is that you must have a debt to service ratio of 1.1 or higher. If the loan is greater than $25,000, collateral may be necessary. It depends on the lender.

The turnaround for express loans is much faster. The SBA takes up to 36 hours to give a decision. Also, there is not as much application paperwork. As a result, express loans are a great option for working capital, among other things, if you qualify.

Other SBA Resources

The SBA exists for all small company owners. However, their Office of Women’s Business Ownership exists to help women local business owners specifically. This includes women minorities. Their goal is to enable and empower business owners that are women via advocacy, outreach, and education as well as assistance.

Business Loans for Minority Women: Private Lenders

Other options for business loans for minority women include private lenders. These loans, much like SBA loans, are not exclusively for minorities or women. However, by nature they tend to work well with the unique challenges each group faces.

Lending Club

LendingClub functions as a peer-to-peer lender that offers mostly fixed-term small business loans. Borrowers that get loans from LendingClub generally use loans funds to buy equipment, finance growth or expansion projects, consolidate other debt, or hire new employees.

The minimum loan amount at LendingClub is $5,000 and the maximum is $300,000. You must have been in business for 12 months or more and have at least $50,000 in annual sales to qualify. There can be no tax liens or bankruptcies, and you must have at least 20% ownership. They will work with a credit score that is fair or higher. A fair credit score ranges from 620 to 659.

Lendio

Lendio offers a loan-connection service that dramatically cuts the time it takes for small business owners to find the perfect loan. They do the legwork by vetting a network of competing small business lenders. Funding is fast, sometimes in as little as 24 hours.

Potential borrowers submit one application and then see offers from lenders in the network. The minimum loan amount is $500 while the maximum is $5,000,000. The business must be U.S. or Canada based and must have a business bank account. The minimum personal credit score for approval is 560.

Blue Vine Business Loans for Minority Women

BlueVine offers two options for small business financing. They include lines of credit and invoice factoring. They also offer the ability to talk with a financing advisor, and their application process takes place exclusively online. Their minimum loan amount is $5,000 and their maximum is $100,000. To be eligible you must be in business for at least 6 months, have revenue of $120,000 per year or more, and have a credit score of at least 600.

Kiva

Kiva has a different lending model. They offer loans to businesses, but their platform is far different from that of traditional or even other non-traditional lenders. It is a kind of cross between crowdfunding and lending. They offer loans with a 0% interest rate, so even though you have to pay it back, it is actually free money. In addition, they do not run a credit check at all. The only requirement is that you have to get at least 5 family members or friends to donate money for your business, and you have to give at least a $25 loan to another business on the platform yourself.

Grameen

Microloans are a great option when it comes to business loans for women with bad credit. Grameen is one of the few lenders that offers microloans specifically for women. The loan amounts range from $2,000 to $15,000, and they also offer financial training and support.

As a bonus, they report payments to Equifax and Experian. Consequently, these loans help borrowers build credit.

Other Resources for Women

Here are some other organizations that work to help women of all races.

National Female’s Service Council

The NWBC is a federal advising council. It works as a resource of guidance to the government on women’s organization problems. The objective is to encourage campaigns, programs, and policies to sustain females from startup to growth.

Other Tools to Consider

Along with those firms listed above, these agencies provide support to women owned businesses.

Association of Women’s Business Centers

The AWBC runs a network of business centers geared toward women. These centers labor to help women succeed by offering training, business development, financing, and mentoring opportunities.

National Association for Female Executives

This organization, also known as NAFE, sponsors events, provides training, and offers other resources to help female business owners achieve success.

National Association of Women Business Owners

The NAWBO works across the country to offer training, events, and other resources to women owned businesses nationwide.

SCORE

With more than 300 chapters and 10,000 volunteers, this is the country’s largest network of expert business mentors that volunteer their time. They match female business owners with mentors, or they can participate in a workshop to help them learn what they need to know to be successful.

Don’t Forget to Look into Grants to Supplement Business Loans for Minority Women

Though highly competitive and rarely enough to fund a business on their own, grants are a great way to supplement other business funding. Here are a few you can start with.

Amber Grant

The Amber Grant awards $500 to $1,000 per month to a woman-owned business. One of the recipients also receives an additional $10,000 grant at the end of the year. Applicants only need to tell their story and turn it in with a $15 application fee.

#GIRLBOSS Foundation Grant

Specifically for woman-owned businesses in fashion, music, and art, the #GIRLBOSS small business grant awards $15,000. They also offer exposure via the Girlboss website and social media platforms. Judges rate those applying on creativity, business savvy, planning, innovation in the field, need, and where they plan to work.

Cartier Women’s Initiative Award

The Cartier Women’s Initiative Award is $100,000 for first place and $30,000 for second place. They award the grant to 18 female business owners from around the world each year. Women business owners who are just getting started may qualify. Look over the complete application for more information.

Grants for Minorities

If you are looking into business loans for minority women, then you must be both a minority and a woman. That being the case, you should check out these grants for minorities as well.

First Nations Development Institute Grants

The mission of this group is to offer grants that help Alaska Natives, Native Hawaiians, and Native Americans. They offer assistance in the application process in addition to funds.

National Black MBA Association Scale-Up Pitch Challenge

Also known as NBMBAA, the Scale-Up Pitch Challenge has cash prizes ranging from $1,000 to $50,000. The associate states its purpose is to help newer businesses that have an African founder that maintains equal ownership.

Non-Minority or Female Specific Options

There are grants options that can work well even though they are not exclusively for minorities, or women. Some examples include the following.

FedEx Small Business Grant

There are 10 grants the company awards each year. They range from $15,000 to $50,000. If you’re a minority owned business with a cutting-edge product, this could be the grant for you.

A business must use the FedEx website to submit entries. There are a few questions to answer about your business. In addition, there is a requirement for an elevator pitch about what makes your business special. Also, you have to explain how you would use the grant funds. A 90 second video submission is optional.

NASE Growth Grants

The National Association for the Self-Employed (NASE) has small business Growth Grants of up to $4,000. They are for micro-businesses, and proceeds can be used for a number of things. They can be utilized for marketing, advertising, expansion, and even to hire employees. These grants are open to everyone. However, you do have to be an NASE member to apply. Membership fees vary based on the membership level chosen.

USDA Value Added Producer Grant

The USDA’s Value-Added Producer Grant (VAPG) program offers grants for small businesses. It includes minority owned business. Grants range up to $250,000. They are specifically to help agricultural producers with activities that add value to their products. As a result, grants are open to those in rural areas. They must be operating as one of the following:

Cooperative
Farmer
Rancher
an independent agricultural producer
or an agricultural producer group

Business Loans for Minority Women and Other Helpful Resources

It’s important that you know about your options for business loans for minority women. However, you need to know what other resources are available as well. There are plenty. Take a look around and see what you can dig up.

The post Business Loans for Minority Women and Other Funding Options appeared first on Credit Suite.

How to Get Minority Loans to Start a Business

If you are reading this, I suspect you are a minority looking to start a business. You either need to know where to start when it comes to finding a business loan, or you have already tried and are having trouble. Maybe you are wondering to yourself “Are there minority loans to start a business?” This is a logical thought, because it would seem it would be easier for minorities to get loans geared specifically toward them.

The truth is, there are some types of loans that are easier than others for minorities to get, but they may not be what you expect. In contrast, some of them probably look exactly like you think they will. Here’s how to find the best minority loans to start a business.

Getting Minority Loans to Start a Business Works Differently than You May Think

In this MBDA study that was recently reprinted, “Disparities in Capital Access between Minority and Non-Minority-Owned Businesses: The Troubling Reality of Capital Limitations Faced by MBEs,” Robert Fairlie, Ph.D. and Alicia Robb, Ph.D. looked at both national and regional studies over several decades. They found that limited financial, human, and social capital, as well as racial discrimination, were the major reasons for the disparities between non-minority and minority businesses. The study is 10 years old, but many of the realities remain the same.

There are minority specific loan programs out there. Most of them, however, work better for existing businesses rather than for starting a business. Your better option is to simply find loans that, minority specific or not, will work despite the challenges that are unique to minorities when it comes to starting a business.

Also, work to build your business in a way that will make it appear fundable to lenders, regardless of who the owner is.

Minority Loans to Start a Business: What Challenges do Minorities Face When Applying for Business Loans?

According to Forbes, these are major challenges faced by minority business owners in getting business funding.

Lower Net Worth

In general, the level of wealth for Latino and African Americans is 11-16 times less than for Caucasians. White business owners typically have more working capital when they start their business.

Lack of Collateral

For the most part, banks are not as likely to approve loans to applicants with less collateral to use against a loan. Lower net worth means less home ownership and fewer high-value assets to sell if a loan defaults. This combination of less security and net worth means banks will likely issue smaller loans that need to be paid back quickly, slowing long term growth.

Poor Location

Businesses owned by minorities in locations that have not traditionally supported new business are not as likely to get funding.

Little to No Credit History

Credit is a huge factor for banks when considering loan applications. Since minority business owners tend to have lower credit scores, for all the reasons already listed, it is harder to get the best rates and terms.

Are Minority Loans to Start a Business Even Possible to Get?

Absolutely. You just have to know where to look. The first stop is the Small Business Administration. As a general rule, they do not lend money themselves. However, they do offer a federal guarantee on loans made by traditional lenders. This makes it easier for borrowers that may not otherwise qualify to get a loan.

In addition, the SBA offers valuable resources that can help business owners and entrepreneurs prepare for the loan application process as well as running a business.

When it comes to minority loans to start a business, one of the best SBA options is the SBA Community Advantage Loan program.

Minority Loans to Start a Business: SBA Community Advantage Loans

These are designed to meet the needs of small businesses in neglected markets. Of course, that includes minorities. The goal is to get local lenders to increase loans up to $250,000. It does this by backing up to 85% of the loan amount. It helps small business owners who might not be able to get traditional financing.

Consequently, credit decision makers overlook factors such as poor credit or low revenue if the business has the potential to stimulate the economy or create jobs in underserved areas.

Loan amounts range from $50,000 to $250,000 with a maximum interest rate of 11%. Terms range up to 25 years.

Minority Loans to Start a Business: Accion U.S. Network

Accion is a non-profit that offers loans in all states. Funds are available to the following:

minorities
veterans
females
those with disabilities
and low to medium income business owners

Loan amounts start from $300 and go up to $250,000. Business owners can use them to help build businesses from the beginning. In addition, Accion will provide you with ways to strengthen your chances of approval should you not qualify.

The qualifications for Accion loans vary by location. You can enter your zip code to see the eligibility requirements for where you live. I entered several different zip codes to get a feel for what I was looking at. Sometimes the minimum credit score was 575. Other times there was no minimum credit score requirement. In addition, there were other requirements that varied by location including not being 30 days late on credit cards, loan payments, or bills. Not being late on rent or mortgage payments over the past year also popped up as a qualifier in some locations.

Minority Loans to Start a Business: Kiva

Kiva is a good place to start to find business startup loans. There is no credit check. It is absolutely free. You have to repay the money, but the interest rate is 0%. The only thing required from you is a thorough business credit profile. Also, you must loan $25 to another business on the site. Last is the requirement that you raise funds from a certain number of friends and family. Usually, it is at least five people from your own network that need to be willing to pitch in.

Start Building Business Credit and Fundability from the Beginning

Since you are reading about minority loans to start a business, it’s likely your business is in the very early or planning stage. This is the perfect time to set your business up to be fundable, build business credit, and increase your chances for funding approval from all financing sources.

Set Up Properly to Build Business Credit and Overall Fundability

Fundability is the ability of your business to get funding. The first step in building fundability and business credit is to have a fundable foundation. These are the building blocks you need.

Separate Contact Information

The first step in setting up a foundation of fundability is to ensure your business has its own phone number, fax number, and address. That’s not to say you have to get a separate phone line, or even a separate location. You can still run your business from your home or on your computer. You do not even have to have a fax machine.

Actually, you can get a business phone number and fax number pretty easily that will work over the internet instead of phone lines. In addition, the phone number will forward to any phone you want it too so you can simply use your personal cell phone or landline if you want. Whenever someone calls your business number it will ring straight to you.

Faxes can be sent to an online fax service, if anyone ever happens to actually fax you. This part may seem outdated, but it does help your business appear legitimate to lenders.

You can use a virtual office for a business address. How do you get a virtual office? What is that? It’s not what you may think. This is a business that offers a physical address for a fee, and sometimes they even offer mail service and live receptionist services. In addition, there are some that offer meeting spaces for those times you may need to meet a client or customer in person.

EIN

The next thing you need to do is get an EIN for your business. This is an identifying number for your business that works in a way similar to how your SSN works for you personally. Some business owners used their SSN for their business. This is what a lot of sole proprietorships and partnerships do. However, it really doesn’t look professional to lenders, and it can cause your personal and business

credit to get all mixed up. When you are looking to increase fundability, you need to apply for and use an EIN. You can get one for free from the IRS.

Incorporate

Incorporating your business as an LLC, S-corp, or corporation is necessary to fundability. It shows your business is legitimate. It also offers some protection from liability.

Which option you choose does not matter as much for fundability as it does for your budget and needs for liability protection. The best thing to do is talk to your attorney or a tax professional. What is going to happen is that you are going to lose the time in business that you have. When you incorporate, you become a new entity. You basically have to start over. You’ll also lose any positive payment history you may have accumulated as well.

This is why you have to incorporate as soon as possible. Not only is it necessary for fundability and for building business credit, but so is time in business. The longer you have been in business the more fundable you appear to be. That starts on the date of incorporation, regardless of when you actually started doing business.

Dedicated Business Bank Account

You have to open a separate, dedicated business bank account. There are a few reasons for this. First, it will help you keep track of business finances. It will also help you keep them separate from personal finances for tax purposes.

There’s more to it however. There are several types of funding you cannot get without a business bank account. Many lenders and credit cards want to see one with a minimum average balance. In addition, you cannot get a merchant account without a business account at a bank. That means, you cannot take credit card payments. Studies show consumers tend to spend more when they can pay by credit card.

All Necessary Licenses

For a business to be fundable it has to have all of the necessary licenses it needs to run. If it doesn’t, red flags are going to fly up all over the place. Do the research you need to do to ensure you have all of the licenses necessary to legitimately run your business at the federal, state, and local levels.

Professional Business Website

I am sure you are wondering how a business website can affect your ability to get funding. Here’s the thing. These days, you do not exist if you do not have a website. However, having a poorly put together website can be even worse. It is the first impression you make on many, and if it appears to be unprofessional it will not bode well for you with consumers or potential lenders.

Spend the time and money necessary to ensure your website is professionally designed and works well. Pay for hosting too. Don’t use a free hosting service. Along these same lines, your business needs a dedicated business email address. Make sure it has the same URL as your Website. Don’t use a free service such as Yahoo or Gmail.

Having these things helps establish your business as a separate entity from yourself as the owner. This is not only important for fundability, but also in building business credit, which is essential to fundability also.

Minority Loans to Start a Business: Don’t Give Up

You may need to use one of the minority loans to start a business listed above to get your feet off the ground. Don’t stop there though. You have to work on building a fundable foundation and building business credit at the same time. This is essential to opening doors to more and better financing opportunities as your business grows.

The post How to Get Minority Loans to Start a Business appeared first on Credit Suite.

All Aboard the Train to Small Business Loans for Minority Women

Are you a minority female looking for small business loans? Then hop aboard the small business loans for minority women express. Each stop along the route has something to offer. Pull into the station, stay awhile, and learn about what each option has to offer.

Small Business Loans for Minority Women Come in All Shapes and Sizes, Find the One that Will Work Best for You

Once inside the station, you may find that small business loans for minority women aren’t what you expect. In addition, you will find there are grants and other resources available to help female minority business owners. There are many other options for funding as well, including loans that are available to everyone. The only way to determine which option or combination of options will work best for you is to learn all you can about each one.

First Stop: The Small Business Administration

The first stop on the small business loans for minority women express is the Small Business Administration. SBA loans are guaranteed by the government and issued by participating lenders, mostly banks. They can guarantee up to 85% of loans of $150,000 or less, and loans that are more than $150,000 they will guarantee up to 75%. The maximum loan amount they offer is $5 million.

Due to the government guarantee, banks are able to offer these loans at lower interest rates and with less strict eligibility requirements. Since many minorities face challenges getting funding due to lower credit scores and net worth, these loans tend to work for them. This is despite the fact that they are open to everyone and not specifically small business loans for minority women. Here’s a sample of what they offer.

7(a) Loans

This is the Small Business Administration’s cornerstone loan program. It offers federally funded term loans up to $5 million. The funds can be used for expansion, purchasing equipment, working capital and more. These funds are distributed through traditional lenders.

504 Loans

Terms for 504 Loans range from 10 to 20 years. Unfortunately, funding can take up to 90 days. They require a minimum credit score of 680, and they use the asset being financed as collateral. There is also a down payment requirement of 10%. This can increase to 15% for a new business.

In addition, there is a 2-years in business requirement. For a startup, equivalent experience for management will meet this.

Microloans

Interest rates on these loans are 7.75% to 8% above the lender’s cost to fund. Terms go up to 6 years. Similar to other programs, they can take up to 90 days to fund. The minimum credit score is 640, and the collateral and down payment requirements vary by lender.

SBA Express Loans

Other SBA Resources

While you are at this stop on the route, take a minute to check out the other resources the SBA offers. They exist for all small business owners. However, their Office of Women’s Business Ownership exists to help female local business owners specifically. This includes females that are considered minorities. Their goal is to enable and empower business owners that are women via advocacy, outreach, and education as well as assistance.

Second Stop: Private Lenders

The next stop when looking for small business loans for minority women is the private lending station. Loans from private lenders, much like SBA loans, are not exclusively for minorities or women. However, They do tend to work well with the unique challenges each group faces.

Lending Club

Lendio

Blue Vine

BlueVine offers two options for small business financing. They include lines of credit and invoice factoring. They also offer the ability to talk with a financing advisor. Their application process takes place exclusively online. The minimum loan amount is $5,000 and the maximum is $100,000. To be eligible you must be in business for at least 6 months, have revenue of $120,000 per year or more, and have a credit score of at least 600.

Kiva

Kiva has a different lending model. They offer loans to businesses, but their platform is far different from that of traditional or even other non-traditional lenders. It is a kind of cross between crowdfunding and lending. They offer loans with a 0% interest rate, so even though you have to pay it back, it is actually free money. In addition, they do not run a credit check at all. The only requirement is that you have to get at least 5 family members or friends to donate money for your business, and you yourself have to give at least a $25 loan to another business on the platform.

Grameen

As a bonus, they report payments to Equifax and Experian. Consequently, these loans help borrowers build credit.

Bonus Stop: The Grant Spur

Though highly competitive and rarely enough to fund a business on their own, grants are a great way to supplement other business funding. It can be wise to keep your eyes open for loan opportunities even while seeking small business loans for minority women. Here are a few you can start with.

Amber Grant

#GIRLBOSS Foundation Grant

Cartier Women’s Initiative Award

First Nations Development Institute Grants

The mission of this group is to offer grants that help Alaska Natives, Native Hawaiians, and Native Americans. They offer assistance in the application process in addition to funds.

National Black MBA Association Scale-Up Pitch Challenge

Also known as NBMBAA, the Scale-Up Pitch Challenge has cash prizes ranging from $1,000 to $50,000. The association says its purpose is to help newer businesses that have an African founder that maintains equal ownership.

There are also grant options that can work well even though they are not exclusively for minorities, or women. Some examples include the following.

FedEx Small Business Grant

There are 10 grants the company awards each year. They range from $15,000 to $50,000. If you’re a minority owned business with a cutting-edge product, this could be the grant for you.

NASE Growth Grants

The National Association for the Self-Employed (NASE) has small business Growth Grants of up to $4,000. They are for micro-businesses, and proceeds can be used for a number of things. They can be used for marketing, advertising, expansion, and even to hire employees. These grants are open to everyone. However, you do have to be an NASE member to apply. Membership fees vary based on the membership level chosen.

Don’t Stop There: Other Resources for Women

Here are some other organizations that work to help women of all races. The support they offer can help you land small business loans for minority women, or any loan for that matter, and run your business well.

National Female’s Service Council

Other Station Resources

Along with those resources listed above, explore these firms that also provide support to women owned businesses.

Association of Women’s Business Centers

The AWBC runs a network of business centers geared toward women. These centers labor to help women succeed by offering training, business development, financing, and mentoring opportunities.

National Association for Female Executives

This organization, also known as NAFE, sponsors events, provides training, and offers other resources to help female business owners achieve success.

National Association of Women Business Owners

The NAWBO works across the country to offer training, events, and other resources to women owned businesses nationwide.

SCORE

You Are the Conductor: Take Your Business to the Next Level

In the end, the key to getting small business loans for minority women is to take the controls and go full steam ahead. You conduct your ride on the rails of business ownership. You can start by opening the doors to all the funding options that could be available to you. To do this, you have to build fundability. When your business is fundable, you have access to funding from virtually every source possible.

The post All Aboard the Train to Small Business Loans for Minority Women appeared first on Credit Suite.

Top Business Loans for Minority Business Owners

It’s no secret. Minorities suffer challenges that are unique to them. Certainly, one of those challenges is how hard it is to find business loans for minority business owners. So,how do you find loans for minority business owners?

The 8 Best Business Loans for Minority Business Owners

To clarify, not all of these loans are loans only for minority business. Nonetheless, they all tend to work well for minority business owners.

1. SBA 7(a) Loans & 8(a) Business Development Program

These loans are open to all small business owners. However, if a minority business owner takes part in the SBA Business Development program, they increase their chance of getting this type of loan.

In fact, in late 2018, the SBA got rid of the 2% fee for loans that are less $150,000 to help with this.

Keep your business protected with our professional business credit monitoring.

2. SBA Community Advantage Loans

These are to meet the needs of small businesses in neglected markets. Of course, that includes minorities. The goal is to get local lenders to increase loans up to $250,000. It does this by backing up to 85% of the loan amount. It helps small business owners who might not be able to get traditional financing.

3. SBA Microloan Program

First, business loans for minority business owners go up to $50,000 through this program. Secondly, funds come from a third-party lender. Usually, these are community nonprofit organizations. Often, they offer management and technical assistance to business owners alongside the loan. These loans are available to all small business owners.

4. Accion U.S. Network

Accion offers loans in all states. Funds are available to the following:

minorities
veterans
women
those with disabilities
and low to medium income business owners

Generally, loan amounts start at $200,000 and go up to $300,000. In addition, Accion can put owners in contact with others to help build a network of support.

Comparatively, the minimum credit score for these loans is 575. Also, you cannot be 30 days late on paying anything. Finally, you will not qualify if you have any late rent or mortgage payments over the past year.

5. Union Bank Business Diversity Lending Program

Furthermore, a business that makes up to $20 million could qualify for a loan of $2.5 million. However, you must be in business for at least 2 years. Likewise, the minority business owner must own at least 51 percent.

6. The National African American Small Business Loan Fund

This is a partnership between JP Morgan Chase and the Valley Economic Development Centers . It serves small businesses with minority owners that are in low income or medium income communities. However, only those in New York, Los Angeles, and Chicago are eligible.

7. Business Center for New Americans

Presently, The Business Center for New Americans offers minority business loans of $5,000 to $50,000. They work with immigrants, refugees, women, and other minority entrepreneurs. They work with minority business owners who have not been able to get traditional financing.

8. Camino Financial

Camino Financial is an online lender. In like manner, they offer business loans for minority business owners. Conveniently, their entire application process is online. Microloans range from $5,000 to $50,000. In addition, they also offer small business loans between $10,000 to $400,000.

Loans for Minority Business Owners: Other Options

Chances are, you are going to need funding from more than one source. Of course, loans are the top option, with grants coming in a close second. Don’t underestimate angel investors and crowdfunding however, as they definitely have their place.

The thing is, funding isn’t just a one and done thing. You are going to need funding throughout the life of your business. As a result, you need to make sure you have access to the most and best possible funding options available. To do this, you must work on fundability.

Loans for Minority Business Owners and Fundability

Unlike many things in the world, the factors that affect fundability are the same for everyone. It doesn’t matter if you are a minority or not. What is fundability?

Fundability is the ability to get funding for your business. How does a business become fundable? What makes this answer complicated is that there is so much it must cover. Sure, a great business credit score is important. In addition, many of the aspects necessary for a strong business credit score are necessary for fundability as well. There is so much more though.

A potential creditor needs to see that your business is legit and profitable. Many loan applications are denied approval due to fraud concerns. Something as seemingly unimportant as an address that hasn’t been updated can cause a problem.

Still, it’s best to start at the beginning. Before you can build fundability at all, you have to have a foundation of fundability.

The Foundation of Fundability for Loans for Minority Business Owners and More

The foundation of fundability is in how your business is set up. It has to be set up to appear to be a fundable entity separate from you, the owner. How do you accomplish this? Well, like any foundation, it is best to start at the beginning. It will be faster and easier if you do. However, if your business is already up and running, then you may not have that option. That’s okay. It’s never too late to start, but start now. For several reasons, the longer you wait the harder it will be.

To have a fundable foundation you will need the following.

Separate contact information

An EIN

To be incorporated

A dedicated business bank account

All the proper licenses
A professional business website

In addition to a fundable foundation, there are many other factors that can and will affect the fundability of your business.

Business Credit Reports

These are much like your consumer credit reports. Except, they detail the credit history of your business. Chiefly, they help lenders determine how credit worthy your business is.

Basically, the main sources of business credit reports are Dun & Bradstreet, Experian, and Equifax. You have no way of knowing if your lender will choose to use one of these agencies, or another, less commonly used option. To that end, you need to make sure your reports with all the credit agencies are up to date and accurate.

Other Business Data Agencies

In addition to those agencies that directly calculate and issue credit reports, there are other business data agencies that affect those reports indirectly. Two examples of this are LexisNexis and The Small Business Finance Exchange. They collect data from a variety of sources. These include public records. This means they could even have access to information relating to automobile accidents and liens. Honestly, you probably will not be able to access or change the data these agencies have on your business. Instead, you should focus on making sure new information they receive is positive. Enough positive information can help counteract any negative information from the past.

Identification Numbers

In addition to the EIN, there are identifying numbers that go along with your business credit reports. You need to be aware that these numbers exist. Some of them are simply assigned by the agency, like the Experian BIN. One, however, you have to apply to get. It is absolutely necessary that you do this.

Dun & Bradstreet is the largest and most commonly used business credit reporting agency. Every credit file in their database has a D-U-N-S number. To get a D-U-N-S number, you have to apply for one through the D&B website.

Business Credit History

This is where the rubber meets the road when it comes to credit reports. Your business credit history has everything to do with everything related to your business credit score. That in turn, is a huge factor in the fundability of your business.

Your credit history consists of a number of things including:

How many accounts are reporting payments?
How long have you had each account?
What type of accounts are they?
How much credit are you using on each account versus how much is available?
Are you making your payments on these accounts consistently on-time?

The more accounts you have reporting on-time payments, the stronger your credit score will be.

Business Information

On the surface, it seems obvious that all of your business information should be the same across the board. However, things slip through the cracks when you make changes. An address or name change can cause a problem if you don’t change it on everything.

A ton of loan applications are turned down each year due to fraud concerns simply because things do not match up. Maybe your business licenses have your personal address but now you have a business address. You have to change it. Some of your credit accounts could have a different name or phone number listed than what is on your loan application. Do your insurances all have the correct information?

The key to this piece of the business fundability is to monitor your reports frequently for mistakes and updates.

Financial Statements

This encompasses a broad spectrum of things. First, there is the obvious. Both your personal and business tax returns need to be in order. Not only that, but you need to be paying your taxes, both business and personal.

Business Financials

It is best to have an accounting professional prepare regular financial statements for your business. Having an accountant’s name on financial statements lends credence to the legitimacy of your business. Have professional statements prepared at least annually.

Personal Financials

Often tax returns for the previous three years will suffice. Get a tax professional to prepare them. Remember, this is the bare minimum you will need. Other information lenders may ask for include check stubs and bank statements, among other things.

Bureaus

There are many other agencies that hold information related to your personal finances. You need to know about them as well. Everyone knows about FICO. Your personal FICO score needs to be as strong as possible. Most traditional lenders will look at both personal and business credit.

In addition to FICO reporting personal credit, you have ChexSystems. In the simplest terms, this keeps up with bad check activity. And it makes a difference when it comes to your bank score. If you have too many bad checks, you will not be able to open a bank account. In turn, that will cause serious fundability issues.

For this point, everything comes into play. Have you ever been convicted of a crime? Do you have a bankruptcy or short sell on your record? All of this can and will play into the fundability of your business.

Personal Credit History

Your personal credit score from Experian, Equifax, and Transunion all make a difference. You need good personal credit. Certainly, it will affect the fundability of your business. In fact, now is the time to work on it. Don’t wait. The number one way to get a strong personal credit score, or improve a weak one, is the same. It’s to make payments regularly on time.

Also, make sure you keep an eye on things. Correct mistakes. Make sure there are no fraudulent accounts. Just keep a general eye on things.

Application Process

Finally, even the application process can affect fundability. First, consider the timing of the application. Is your business currently fundable? Next, make sure your business name, business address, and ownership status are all verifiable. Lenders will check. Lastly, make sure you choose the right loan. Do you need a traditional loan or a line of credit? Would a working capital loan or expansion loan work best for your needs? Choosing the right product to apply for is important.

Loans for Minority Business Owners: Build Fundability

There are some specific business loans for minority business owners available. Nevertheless, the better option is to build fundability to increase your chances of approval for all funding options. Obviously, the more fundable your business is, the better. Look for minority loans. Simultaneously, work on a fundable foundation. Then, keep working. If your business is fundable, it can get the funding it needs to thrive and grow into the future.

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Minority Business Loans and Grants: Their Powers Combined Can Help Your Business Explode

Like peanut butter and jelly, minority business loans and grants make for a powerful combination. On their own, each can be a phenomenon, but put them together, and you have a match made in small business funding heaven.

Use Minority Business Loans and Grants Together for a Powerful Combination

Minority loans and grants can be great tools when paired with other funding sources. But how do you get them? How do you use them together? Which ones are best for you? We know how to find the answers to all of these questions and more.

Minority Business Loans and Grants: Start with The Small Business Administration

It’s impossible to talk about business loans and not mention the SBA. While they do not lend funds directly, they do handle the administration of many loan programs that help all small businesses get the funds they need through partner lenders. Many of their programs, though not specifically for minorities, work fabulously for minority business owners.

7(a) Loans

This is the Small Business Administration’s most known program. It provides federally funded term loans up to $5 million. The funds can be used for a number of purposes, including expansion, purchasing equipment, working capital and more. Banks, credit unions, and other specialized institutions in partnership with the SBA process these loans and disburse the funds.

504 Loans

504 loans are also available up to $5 million. They can be used to buy machinery, facilities, or land. Typically, business owners use them to fund expansion. They work especially well for commercial real estate purchases.

Microloans

Microloans are loans for $50,000 or less. They work well for starting a business, purchasing equipment, buying inventory, or general working capital.

SBA Express Loans

These are fast turnaround loans, with the SBA taking 36 hours or less to give a decision. There is less paper work as well, which is part of what makes express loans great if you qualify.

SBA Community Advantage Loans

This is a pilot program running through 2020. It also has the potential for extension. Its purpose is to promote economic growth in underserved areas and markets. Decision makers look past such things as poor credit or low revenue if the business has the potential to create jobs or promote economic growth in underserved areas.

These are some of their most popular programs. The Small Business Administration does so much more for small businesses in addition to this. Get more details on the SBA, these loan programs, and additional resources offered by the Small Business Administration here.

Minority Business Loans and Grants: Private Lenders

Though not specific to minorities, some private lenders offer products that work well when paired with grants to help a business grow and expand. Here are just a few examples.

BlueVine

BlueVine has several financing options. For example, they offer term loans, invoice financing, equipment financing, lines of credit, and merchant cash advances. As a requirement, you have to be in business for at least 6 months. If you need a term loan or a line of credit, then they require a minimum annual revenue of $100,000. For invoice factoring, the minimum credit score is just 530! If you want a line of credit or term loan, you will need a minimum credit score of 600. They have an A+ rating with the BBB. Find out more about BlueVine in this review.

OnDeck

OnDeck has lines of credit and term loans with fixed interest rates. You can get up to $500,000 with a term loan. They also have an A rating with the Better Business Bureau. The minimum FICO they require is 600. In addition, you must have $100,000 minimum annual revenue and be in business for at least one year. Find out more about OnDeck in our review.

SmartBiz

SBA loans typically take a lot of time and paperwork. Still, SmartBiz found a way to speed things up. They make it easier than ever. Unfortunately, they do have stricter requirements. For example, your credit score has to be at least 650. Also, you have to be in business for 2 years or more. Further, annual revenue has to be $50,000 at least. There can be no outstanding liens, bankruptcies, or foreclosures in the past 3 years either.

Funding Circle

If you’re looking for a low APR, then Funding Circle is your go-to. They have fixed rate term loans and require a credit score of 620 or above. Unlike BlueVine, there is no minimum revenue requirement. However, they do require you to be in business for at least 2 years. They have an A+ BBB rating. Find out more in our Funding Circle review.

StreetShares

This company offers invoice financing, term loans, and lines of credit. Similar to others, there is a minimum number of years in business requirement. However, the minimum annual revenue requirement is less than others, at only $25,000. Additionally, the minimum credit score is 600. They also have an A+ rating with the Better Business Bureau. Find out more about StreetShares in our review, here.

Minority Business Loans and Grants: Improve Your Chances of Loan Approval

Just being a minority business owner does not guarantee approval regardless of the lender or loan program. There are some things a lender is looking for regardless. Though some lenders are a little more relaxed than others, at their core, they are all looking for the same general things on some level.

Fundability

A business that appears fundable to a lender is complete, organized, and either has solid revenue or a solid startup plan. Find out more about fundability, what it is, and what affects it here.

To appear fundable, a business needs:

To be formally incorporated as an S-corp, LLC, or a corporation.
An EIN from the IRS. This is an identifying number for your business that functions similar to the way your SSN does for you personally.
A dedicated business bank account.
Contact information that is different from the owner’s. A separate telephone number on a toll-free exchange and a dedicated physical address are vital..
A professional website and an email address that has the same URL. Free web hosting and email services won’t do the job in this case.

A Business Plan is Necessary for Minority Business Loans and Grants

Lenders want to see a professional business plan. Even if you are not a startup a plan is necessary. Startups need a plan so that lenders can see they know what they are doing. Established businesses need to show how they plan to use the funds. Lenders want to see that applicants have research to support the plan as well. Find out more about business plans here.

Forms and Documentation

It is pretty much not possible to over prepare when applying for a loan. Because of this, you should try to think ahead to what information lenders may want to see. Pull together forms and documentation they may ask for. Items such as past tax returns, financials, and licenses are common. The more prepared you are from the beginning, the smoother the process will flow.

Your Personal Credit Has to Be Strong

A solid personal credit score is important to getting the best small business loans. You can’t escape it. As you can see above, a score of 600 or higher is necessary almost across the board with the exception of some invoice factoring and non-traditional options.

Remember, it isn’t impossible to improve your personal credit score. The first step is to get a copy of your credit report. You can get a free copy each year. Scan it for what may be causing a negative impact. If there are mistakes, contact the credit agency in writing to have them removed. If late payments are the issue, start paying on time. You cannot fix a problem until you know what the problem is.

Business Credit Counts Also

When it comes to business loans, you cannot ignore business credit either. While it usually isn’t listed as a primary requirement, for most lenders having a strong business credit score can only help you.

If a lender sees a personal score that isn’t exactly what they need, they may consider business credit when making their decision. In addition, if you qualify for the loan and have good business credit, you may be able to get a lower interest rate.

Minority Business Loans and Grants: Find Your Loan a Grant Sidekick or Two

No super hero due is complete without a sidekick. If Robin was the jam to Batman’s peanut butter, then maybe one of these grants, or one not listed, can help round out your business funding as well.

The nice thing about grants is, they do not have to be repaid. It’s free money. The drawbacks are that they are highly competitive, and they usually are not enough to fund a business alone. They work well, but they are not superhero material, typically. Once a sidekick, always a sidekick.

Some grants are minority specific, and some are not. They vary in application process and eligibility requirements. Here are some examples of each to add to your minority business loans and grants repertoire.

First Nations Development Institute Grants

The mission of this group is to offer grants that help Alaska Natives, Native Hawaiians, and Native Americans. Not only that, but there are a wide range of opportunities from the First Nations Development Institute. There is a mailing list you can join to receive information about new opportunities as they become available.

National Black MBA Association Scale-Up Pitch Challenge

Also known as NBMBAA, the Scale-Up Pitch Challenge offers cash prizes ranging from $1,000 to $50,000. The association says its purpose is to help newer businesses that have an African founder that maintains equal ownership.

A business must be a member of the NBMBAA to compete. There is a $10 monthly membership fee. After that, there is an online application. If chosen, you must submit a pitch that lasts three minutes. Then, finalists go on to compete at the NBMBAA annual conference.

Other Grant Options: Non-Minority Specific

There are grant options that can work well even though they are not exclusively for minorities. They are available to everyone, including minorities. Some examples include the following.

FedEx Small Business Grant

This grant is how FedEx is working to strengthen small business innovation. There are 10 grants the company awards each year. They range from $15,000 to $50,000, and if you’re a business with a cutting-edge product, this could be a great opportunity.

A business must use the FedEx website to submit entries. There are a few questions to answer about your business. In addition, there is a requirement for an elevator pitch about what makes your business special. Also, you have to explain how you would use the funds. A 90 second video submission is an option as well.

NASE Growth Grants

USDA Value Added Producer Grant

Cooperative
Farmer
Rancher
an independent agricultural producer
or an agricultural producer group

Minority Business Loans and Grants: A Dynamic Duo for Your Business

You do not have to have one to have the other. However, if you pair them, you get twice the power. Another great thing about grants is, you aren’t limited in how many you can win. Apply for all that you qualify for and see what happens. Minority business loans and grants combined could be just the boost your business needs to soar to new heights.

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Minority Startup Business Loans: What You May Not Know

There seems to be a lot of confusion out there related to minority startup business loans. The fact is, there are not a lot of loans specific to minorities. This is true whether your business is still in the startup phase or an already established business.

Minority Startup Business Loans May Not Be What You Think

While specific minority startup business loans don’t really exist, there are some loans that work better for minority startups than others. In addition, there are a ton of other resources available. Some of these are minority specific, and some not.

Minority Startup Business Loans: Start With the Small business Administration

When you talk about business loans of any kind, you have to talk about the SBA. While they do not lend funds themselves, they do handle the administration of many loan programs that help small businesses get the funds they need through partner lenders.

Minority Startup Business Loans: 7(a) Loans

This is the Small Business Administration’s main program. It provides federally funded term loans up to $5 million. The funds can be used for a number of purposes. For example, expansion, purchasing equipment, and working capital can all be funded with 7(a) loans. Banks, credit unions, and other specialized institutions in partnership with the SBA process these loans and disburse the funds.

Minority Startup Business Loans: 504 Loans

504 loans are also available up to $5 million and can buy machinery, facilities, or land. Typically, they are used for expansion. In fact, these work especially well for commercial real estate purchases.

Minority Startup Business Loans: Microloans

These are $50,000 or less. Furthermore, they work well for a number of things. Business, purchasing equipment, buying inventory, or general working capital are all options for using these funds.

Minority Startup Business Loans: SBA Express Loans

These are fast turnaround loans. The SBA takes 36 hours or less to give a decision. There is less paper work as well. As a result, express loans are a great option, if you qualify.

Minority Startup Business Loans: SBA Community Advantage Loans

This one is a pilot program. It will either expire, or the SBA will extend it in 2020. Its purpose is to promote economic growth in underserved areas and markets. Decision makers look past such things as poor credit or low revenue if the business has the potential to create jobs or promote economic growth in underserved areas.

These are some of their most popular programs. However, the Small Business Administration does so much more for small businesses in addition to these. Get more details on the SBA, these loan programs, and additional resources offered by the Small Business Administration here.

Minority Startup Business Loans: Private Lenders

In addition to SBA loans, there are several private lenders that offer products that work really well for minority business owners. Below are just a few.

OnDeck

OnDeck offers lines of credit and term loans with fixed interest rates. You can get up to $500,000 with a term loan. Also, they have an A rating with the Better Business Bureau. Even better, the minimum FICO they require is 600. However, you must have $100,000 minimum annual revenue and be in business for at least one year. Find out more about OnDeck in our review.

BlueVine

BlueVine offers a number of financing options. For instance, term loans, invoice financing, equipment financing, lines of credit, and merchant cash advances are all offered by BlueVine. As a requirement, you have to be in business for at least 6 months. A minimum revenue of $100,000 and a minimum credit score of 600 is required if you want a term loan or line of credit. However, for invoice factoring, the minimum credit score is just 530! Furthermore, they have an A+ rating with the BBB. Find out more about BlueVine in this review.

Funding Circle

If you’re looking for a low APR, then Funding Circle is your place. They have fixed rate term loans that require a credit score at least 620. Unlike BlueVine, there is no minimum revenue requirement. However, they do require you to be in business for at least 2 years. They have an A+ BBB rating also. Find out more in our Funding Circle review.

StreetShares

Of course, this company also offers invoice financing, term loans, and lines of credit. Similar to others, there is a number of years in business requirement. However, they require less minimum annual revenue than the others at only $25,000. The minimum credit score is 600. Like some of the other, they have an A+ rating with the Better Business Bureau as well. Find out more about StreetShares in our review, here.

SmartBiz

SBA loans typically take a lot of time and paperwork. Still, SmartBiz found a way to speed things up. They make it easier than ever. Unfortunately, they do have stricter requirements. Your credit score has to be 650. Like others, they also require you to be in business for 2 years or more. In addition, annual revenue has to be $50,000 at least. There can be no outstanding liens, bankruptcies, or foreclosures in the past 3 years.

You Can Supplement Minority Startup Business Loans with Grants

If you qualify, there are many grant options available. While they usually are not enough to fully fund a business, they can be great for supplementing loan funds. There are not many specifically for minorities, but there are some. Here is just a sample of what is out there.

Grants Exclusive to Minorities

First Nations Development Institute Grants

The mission of this group is to offer grants that help Alaska Natives, Native Hawaiians, and Native Americans. As a bonus, they offer assistance in the application process in addition to funds.

Not only that, but there are a wide range of opportunities from the First Nations Development Institute. New ones initiate as old ones retire. There is a mailing list you can join to receive information about new opportunities as they become available.

National Black MBA Association Scale-Up Pitch Challenge

Also known as NBMBAA, the Scale-Up Pitch Challenge has cash prizes ranging from $1,000 to $50,000. The association states its purpose is to help newer businesses that have an African founder that maintains equal ownership.

Be aware, a business must be a member of the NBMBAA to compete. To do this, there is a $10 monthly membership fee. After that, there is an online application. If chosen, you must submit a three-minute pitch. Then, finalists go on to compete at the NBMBAA annual conference.

Non-Minority Specific Options

There are grants options that can work well even though they are not exclusively for minorities. Some examples include the following.

FedEx Small Business Grant

This grant is the company’s way of working to strengthen small business innovation. There are 10 grants the company awards each year. They range from $15,000 to $50,000, and if you’re a minority owned business with a cutting-edge product, this could be the grant for you.

NASE Growth Grants

The National Association for the Self-Employed (NASE) has small business Growth Grants of up to $4,000. In reality, these are for micro-businesses. The proceeds can be used for a number of things. For example, they can be utilized for marketing, advertising, expansion, and even to hire employees. These grants are open to everyone. However, you do have to be a NASE member to apply. Membership fees vary based on the membership level chosen.

USDA Value Added Producer Grant

The USDA’s Value-Added Producer Grant (VAPG) program offers grants for small businesses. It includes minority owned business, and grants range up to $250,000. At their core, these grants are designed to help agricultural producers with activities that add value to their products. As a result, grants are open to those in rural areas. They must be operating as one of the following:

Cooperative
Farmer
Rancher
an independent agricultural producer
or an agricultural producer group

Tips for Landing Any Business Loan

Here are a few tips to help you land any loan, specific to minorities or not.

Work to Increase Fundability

Simply put, fundability is the ability of your business to get funded. That simplicity leaves a lot out however. How do you get to be fundable? What determines fundability? How do you increase fundability?

A potential creditor needs to see that your business is legitimate and profitable. A lot of loan applications are denied approval due to concerns about fraud. Others are not approved because something didn’t look right and threw up a red flag. If you understand what fundability is and how to get it, you can stop any such red flags before they cause you problems.

So what makes a business fundable? Here is a streamlined list.

The Elements of Fundability

A Fundable Foundation
- Separate contact information
- EIN
- Business Bank Account
- Proper Licensing
- Professional Website
Business Credit Reports
- Other Business Information Agencies
- Identification Numbers
- Business Credit History
- Business Information
Financial Statements
- Business Financials
- Personal Financials
- Bureaus
Personal Credit History
Application Process

Go here to get more detail on each of these and how they affect the fundability of your business.

Put Together an Amazing Business Plan

In addition to working on the fundability of your business, you need to have a great business plan to get a lender to pay attention. This is more than just a piece of paper telling a lender about your business. It should include research, projections, and more. A well-put together, complete business plan includes the following.

Opening

An Executive Summary

Simply put, this is a complete summary of the business idea.

Description

The description goes into more detail than the summary when describing the business. For example, what type of business is it? What will it offer? This is where you get others excited about what you are doing.

Strategies

For this piece, layout your plan for getting things up and running. Like, do you have a marketing plan? Is there a location you have in mind? How many employees you will start with? What is your ramp up plan?

Research

Surprising to some, writing a complete business plan requires a ton of research. Not only must you do market research to ensure your product is needed and wanted, but also to see that your location and market coincide. In addition, you need to know that the market can support your business.

It is also necessary to research any existing competitors.

Market Analysis

This actually includes two parts, the analysis of audience and the competitive analysis.

Analysis of Audience

First, what need will your business fill, and for who? For example, will your business fulfill a childcare need for working parents? Next, how will your business fill those needs? Include all of this in the analysis of audience section.

Competitive Analysis

Is there a business currently working to fill this need? Can the market hold more options? Given that information, how do you plan to be the best?

Strategy

This is the way you plan to run your business moving forward. Put another way, it is how you plan to put into action what you learned in the research phase.

Plan for Design and Development

How is all of this going to play out? From start to finish, what steps are you going to take? This section includes more detail than the strategies section.

Plan for Operation and Management

How will ownership be structured, and who will handle the day to day running of the business? It could be as simple as saying you are the sole owner and operator. In contrast, it could mean laying out a complete board of directors format. It just depends on how you plan for your business to work.

Financials

While all parts of the business plan are important, this is where lenders really sit up and pay attention. Even if the whole rest of the plan is fabulous, it will not matter if the financial section isn’t in order.

Financial Information

This section includes current financials, projections, and a plan for the loan funds you are asking for. Lenders need to see that you know how to handle the funds you get, and that you have a plan for paying them back.

If at all possible, you need to hire help with this. A professional writer, accountants, and research consultants can help you make your business plan the best it can be. If you absolutely cannot hire help, there are some great business plan templates out there.

Minority Startup Business Loans: Now You Know

Business loans are a great way to fund a startup, whether you are a minority or not. As a minority business owner, it is important to know what resources are available to you. Equally as important, is that you do not pigeon hole yourself to just minority resources. You need to know, out of the resources that are available to everyone, which ones will work best for minorities. This list should give you a great starting point, but be sure to do your own research as well.

The post Minority Startup Business Loans: What You May Not Know appeared first on Credit Suite.

How Fundability and Minority Small Business Grants Can Build Off Each Other

First, to be clear, minority small business grants, and any grants for that matter, are totally free money that you do not have to pay back. As such, those awarding grants typically do not consider your ability to repay a grant in the selection process. That doesn’t mean that fundability doesn’t matter though. It does. … Continue reading How Fundability and Minority Small Business Grants Can Build Off Each Other

Business Grants for Minority Women and So Much More

Business Grants for Minority Women and More Funding for Minority Businesswomen

Business Grants for Minority Women

Amber Grant

Cartier Women’s Initiative Award

The Cartier Science and Technology Pioneer Award

Cartier Fellowships

Business Grants for Minority Women – Black Women

National Black MBA Association Scale-Up Pitch Challenge

The Minority Business Development Agency

The Verizon Small Business Recovery Fund

Business Grants for Minority Women – Native Americans

First Nations Development Institute Grants

The Native American Business Development Institute (NABDI) Grant

Indian Affairs

Business Grants for Minority Women – Asian Woman

The South Asian Arts Resiliency Fund

Business Grants for Minority Women – Grants for All

Grants.gov

More Types of Funding

Crowdfunding

Angel Investors

Business Center for New Americans

Business Grants for Minority Women: Takeaways

When It Comes to Minority Business Loans, Bad Credit May Haunt You

Lower Net Worth

Lack of Collateral

Poor Location

Little to No Credit History

Minority business Loans Bad Credit: First Things First

Set Your Business Up to Be Fundable

Separate contact information

An EIN

All necessary and appropriate licenses

Incorporation

A D-U-N-S Number

Separate Business Bank Account

Professional website

Work on Building Business Credit

Minority Business Loans Bad Credit: You Need Accounts Reporting to Your Business Credit Report

Work with Starter Vendors

Minority Business Loans Bad Credit: What Next?

Fix Your Personal Credit

Minority Business Loans Bad Credit: In the Meantime

Accion U.S. Network

Union Bank Business Diversity Lending Program

The National African American Small Business Loan Fund

Business Center for New Americans

Camino Financial

Minority Business Loans Bad Credit: The SBA?

SBA 7(a) Loans & 8(a) Business Development Program

SBA Community Advantage Loans

SBA Microloan Program

Minority Business Loans Bad Credit: Bad Credit Doesn’t Have to Stop You

Minority Owned Business Loans Do Not All Look the Same

Loans from The Small Business Administration

SBA 7(a) Loans & 8(a) Business Development Program

SBA Community Advantage Loans

SBA Microloan Program

Minority Owned Business Loans: Non-SBA Loans

Accion U.S. Network

Minority Owned Business Loans That Don’t Wear a Mask

Union Bank Business Diversity Lending Program

The National African American Small Business Loan Fund

Business Center for New Americans

Camino Financial

Build Business Credit to Increase Your Chances of Approval with Any Loan

It Starts with the Foundation

The Business Credit Building Process

You Need Accounts Reporting to Your Business Credit Report

Starter Vendors in the Vendor Credit Tier to Help Build Business Credit

Crown Office Supplies

Grainger Industrial Supply

Behalf.com

Then What?

Building Business Credit Can Open the Door to Many More Funding Options

Business Loans for Minority Women and So Much More

Business Loans for Minority Women: The Truth

Business Loans for Minority Women: Traditional vs. Private

The Small Business Administration