How and Where to Get a Women Owned Business Grant

A grant is a great way to fund a business. It’s free money. You don’t have to pay it back. However, grants are highly competitive, so you need every advantage you can get. In addition, you need a backup plan in case you do not get it, or if it’s not enough money. Here are some tips to help increase your chances of getting a women owned business grant.

Learn business loan secrets and get money for your business.

Top Tips to Increase Your Chance of Landing A Women Owned Business Grant

All grant programs are highly competitive. Still, they are still worth the effort to apply. Truly, there really isn’t anything to lose except time and application fees, which are typically minor. A women owned business grant will rarely be enough to fully fund a business. Yet, it may supplement other funding types. Not only that, but often winners receive other support such as mentoring and networking opportunities.

5 Hacks to Increase Your Chances of Winning a Women Owned Business Grant

Of course, there are no guarantees. But, there are some things you can do to increase your chances of winning a grant.

1. Don’t Waste Your Time on the Wrong Grant

Most grant application processes take a significant amount of time and preparation. Don’t waste your time applying for every women own business grant out there. Be intentional to find those that you have the best chance at winning. For example, if you own a restaurant, don’t apply for a grant meant for tech businesses. Rather, pay attention to the requirements and only fill out applications for those that you qualify to win.

2. Do Your Research

Take the time to study up on the history of the program, past winners, and anything else you can think of to learn about the grant. There are a few ways this can help you. First, you may be able to see what past winners have in common and aim to show the decision makers you have similar qualities. It can give you direction when it comes to working on your application materials.

But also, if there is an interview, it can give you background knowledge. This can only help you.

3. Have a Complete Business Plan

Most people think of business plans more in terms of applying for a loan. However, it is vital to grant applications as well. You want to convince the award committee that your business is worth it. Honestly, having a complete, professional business plan goes a long way toward that goal.

4. Customize Your Business Plan for the Grant

There is no need to use the exact same plan, verbatim, for each grant application. You’ve done the research. You’ve seen who won each grant in the past. Now, it’s time to show what you know, and why you should be next. Make certain to include information that the grant specifically asks for. If you share any qualities of previous winners, slip that in. Show them what other funding sources you have. Tell them how you intend to spend the grant funds if you win. Put your best foot forward, this is your time to shine.

5. Don’t Let Time Run Out

Start now researching grants you may be interested in. Pay attention to when applications open and close, and don’t let something simple knock you out of the running. With competition being so fierce, application acceptance after a deadline is virtually unheard of. Also, some grants have more than one deadline with different aspects of the application being due at different times. Pay attention.

Where to Find a Women Owned Business Grant

Now, you need a women owned business grant, or a few, to apply for. Start with these, but the buck doesn’t stop here. There are plenty of local and state options, as well as grants that are not limited by location or type of business owner. There are minority business grants that you may qualify for as well.

SBA Women’s Business Centers

In addition to helping with loans, the SBA Women’s Business Centers also help women entrepreneurs get access to other types of funding. Some lend money or award grants directly, while others help connect women entrepreneurs with financial institutions. Take a look at their website to find out more on how to apply for women owned business grants through this network.

Eileen Fisher Women Owned Business Grant

The clothing brand Eileen Fisher hands out $100,000 per year to 10 women-owned businesses. To qualify, a woman must have at least 51% ownership, and the business must be in operation for at least three years. Also, it must bring in less than $1 million per year in revenue and have a focus on environmental or social change.

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.

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.

All of the finalists get to attend the INSEAD Social Entrepreneurship 6-Day Executive Program (ISEP). They will also have the opportunity to participate in workshops on entrepreneurship and business coaching seminars, as well as be exposed to networking opportunities.

Tory Burch Fellowship Program

The Tory Burch Fellowship Program offers an amazing opportunity for up to 50 winners. An applicant must be a woman-identifying entrepreneur with at least a 51% stake in a qualifying business, or the largest equal stake if it is owned 100% by women.

Applicants must also speak proficient english and be a legal U.S. resident. Nonprofits, ventures in the idea stage, and franchises or subsidiaries are not eligible.

Applications open in the fall, and winners receive a $5,000 grant in addition to a one-year fellowship that includes virtual education, workshops, and guidance.

Learn business loan secrets and get money for your business.

Women Founders Network Fast Pitch Contest

The Women Founders Network offers this unique opportunity each year to female founders. What makes it different is the leadership, coaching, and in-kind sponsorships that are included in addition to the cash prices. The contest also draws the attention of investors, which offers the opportunity to raise even more capital.

A Women Owned Business Grant is Not The Only Answer

While these programs work to meet the unique challenges faced by women business owners, sometimes it just isn’t enough. You need a backup plan. Here are some other funding options that can supplement grant funds, or even replace them if your business isn’t chosen as a recipient.

Grameen

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.

The Credit Line Hybrid

The Credit Line Hybrid is a form of unsecured business financing. It is available to pretty much anyone for any type of business expense. You can use it for real estate, equipment, working capital, and even startup expenses. There is no down payment, and you do not have to provide income documentation. It is completely no-doc financing. A credit score of 680 or higher is necessary, and there are some other requirements. However, if you do not meet them you can take on a credit partner that does.

You can get up to $150,000, and often interest rates are as low as 0% for the first 6 to 18 months.

Learn business loan secrets and get money for your business.

SBA Enterprise Loans

You need to have collateral worth up to at least 50% of the loan amount, but you only need a FICO of 620. There also can be no bankruptcies in the past 4 years. Only for profit companies qualify, and they must have positive trends in sales growth. Generally amounts are available of up to $12 million with terms up to 25 years.

The BEST Way to Ensure You Can Always Get the Business Funding You Need

Remember, you are always going to need funding. Furthermore, grants are not going to be the answer every time. Loans, credit lines, and other financing options are likely going to be necessary throughout the life of your business.

The best way to ensure you have access to these when you need them is to make certain your business’s overall fundability is in order. The thing is, that isn’t as easy as it may seem. There are over 100 factors that affect fundability.

Unfortunately, it’s a complicated puzzle to piece together. Thankfully, you can save time and money by working with a business credit expert. They can help you evaluate your current fundability, help you improve it if necessary, and guide you toward the best funding options for your business right now. Get started with a free consultation with one of our business credit experts today.

The post How and Where to Get a Women Owned Business Grant appeared first on Credit Suite.

Get Grants for Small Black Owned Businesses

Check out Business Grants for Small Black Owned Businesses and So Much More

Are you one of the millions of black business owners in the US? 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). Yes, you can get grants for small black owned businesses.

Looking for Grants for Small Black Owned Businesses – and Other Options

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

Funding and Grants for Small Black Owned Businesses

There are grants for black business owners, but not necessarily for them exclusively. Still, there are other funding choices out there. Loans, crowdfunding, and even angel investors are all viable options. More on those later.

Business Grants for Small Black Owned Businesses

The government and private organizations want to GIVE you money! Though highly competitive and rarely enough to fund a business on their own, 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.

The Minority Business Development Agency

The Minority Business Development Agency (MBDA) is operated by the US Department of Commerce. It is dedicated to helping minority-owned businesses access the resources they need to grow and succeed. The MBDA is for both men and women. Grant competitions are regularly changing.

Visit the MBDA’s website for information 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.

Enterprising Women of Color Initiative

The MBDA oversees the Enterprising Women of Color (EWOC) Initiative. The initiative works to focus 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 serves as an advocate for women’s economic empowerment, by supporting efforts to advance women’s equality and promote women economic advancement programming. The vision of EWOC is to ensure women worldwide to reach their economic potential. See mbda.gov.

The Verizon Small Business Recovery Fund

The Verizon Small Business Recovery Fund is new. It was established in response to the COVID-19 pandemic. The fund offers $10,000 to successful applicants. The fund is specifically focused 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

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 American ownership. This is a pitch competition for startup businesses. See nbmbaa.org/scale-up-pitch-challenge.

Demolish your funding problems with 27 killer ways to get cash for your business.

Amber Grant

Black businesswomen have even more options open to them. 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

Black businesswomen can also try for a Cartier award. This award is for women and 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, with $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

Cartier Science and Technology Pioneer Award and Fellowship

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 be recognized for a new thematic award. 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 be awarded a $100,000 grant. Each of the two remaining finalists will receive a $30,000 grant.

Cartier also offers a fellowship program. The fellowship is an educational program geared towards the 24 fellows selected each year. This program aims to equip the fellows with the necessary skills to grow their business. Also, it helps them to build their leadership capacity by drawing upon the experience and expertise of an array of 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.

Demolish your funding problems with 27 killer ways to get cash for your business.

The Native American Business Development Institute (NABDI) Grant

Are you also part Native American? Then check out this grant.

The NABDI Grant is funded by the US Department of the Interior’s Bureau of Indian Affairs. 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, 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 that can be requested, but most awards range in value from $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

For black business owners who also have Native American heritage, it doesn’t stop there. 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. 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. There are additional requirements if you use the funds 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.

The South Asian Arts Resiliency Fund

If your business is in the arts, and you’re also of South Asian descent, then check out this fund. The fund is run by the India Center Foundation. It supports 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 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.

Eligibility for The South Asian Arts Resiliency Fund

To be eligible, applicants must be of South Asian descent. Also, they must work in the arts and demonstrate loss of income due to COVID-19. Also, applicants must be:

at least 21 years old
not enrolled in a degree program, and
able to receive taxable income in the US

You can put grant funding toward any artistic project you can develop, create, and present within four to six weeks of getting funding. See theindiacenter.us/artsfund.

Demolish your funding problems with 27 killer ways to get cash for your business.

Grants.gov

Grants.gov is a running list of more than 1,000 available federal government grants. The website compiles grants from over two dozen government agencies. These include the SBA, USDA, and the US Department of Commerce. To find a grant right for your business, use the Search Grants tool on the website. You can sort through the list of grants by keyword or opportunity number.

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

An Alternative to Grants for Small Black Owned Businesses: Angel Investors

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

An Alternative to Grants for Small Black Owned Businesses: Crowdfunding

If you would rather not rely on grants so much to fund your business, crowdfunding is a viable option. Keep in mind, not everyone with a campaign on a crowdfunding site is successful. 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 than others.

An Alternative to Grants for Small Black Owned Businesses: Loans

If grants aren’t an option, loans might work for you.

Business Center for New Americans

If you’re an immigrant, then 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.

Grants for Small Black Owned Businesses: Takeaways

There are several options for grants for black owned businesses. Black entrepreneurs should apply for whichever 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.

The post Get Grants for Small Black Owned Businesses appeared first on Credit Suite.

Get Grants for Small Black Owned Businesses

Check out Business Grants for Small Black Owned Businesses and So Much More Are you one of the millions of black business owners in the US? 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 … Continue reading Get Grants for Small Black Owned Businesses

How to Get Funding for Women Owned Companies

Women owned companies are exploding onto the scene. In fact, you may be surprised to learn that companies such as Cisco, Liquid Paper, The Body Shop, Spanx, and Proactive are all owned by women.

What Women Owned Companies Need to Succeed

Women owned companies are definitely becoming a force in the entrepreneurial world. According to Fundera, 40% of US businesses are owned by women. If you are ready to join the ranks, here is what you need to know.

Women Owned Companies: Start Off On the Right Foot

All businesses, including women owned companies, need strong fundability. This starts with how your business is set up. The first part of this is separating the business from yourself. This starts with having separate contact information, meaning you do not use your personal address or telephone number as your business address or telephone number.

That sounds easy enough. However, many entrepreneurs, especially women, choose to start their business from their residence. It makes sense. In theory, a female business owner could better manage a home and children if running a business from home. Even a woman, or a man for that matter, without a family could find benefit in the flexibility of running their own business from home. There is no commute, you cut the cost of buying lunch out, and you can work in your pajamas.

Foundation of Fundability

While some would argue these things are not all they’re cracked up to be, one thing is for sure. It is definitely tempting to use your personal contact information as your business information if you work from home. There are two things you need to know about this.

What frustrates you the most about funding your business? Check out how our free guide can help.

Contact Information

First, regardless of where you run your business from, you do not need to use your personal contact information as your business contact information. Second, you can still run your business from your home and still have separate contact information for your business.

The phone number part is easy. You could get a separate phone, but it isn’t necessary. It is easy enough to get a number that works through the internet. You can then forward it to your regular phone, and whenever someone calls your business number it will ring to your personal phone.

An address is a little trickier, but not impossible. Whatever you do, don’t use a P.O. Box or an UPS box. Many types of funding will not accept this type of address. They want to see a physical address.

Other Setup Information

This is not the only issue with setting up your business to be fundable. But it is the first step. After that you need an EIN, you need to incorporate, and you absolutely must get a D-U-N-S number. You also have to open a dedicated business bank account.

The whole point in setting up your business to be fundable is so that you can get funding for your business. There is a huge catch 22 here, as if you are already running a business and are not yet set up to be fundable, you may need money before you can get it done. The set up is only one piece of the fundability puzzle. There are over 100 different fundability factors that lenders consider. Building business fundability takes time.

Best Funding for Women Owned Companies Right Now

The problem is, the longer you wait, the hard it gets to build fundability. Not only that, you need money now, right? How do women owned companies get the funds they need to grow and thrive, or just survive, in the meantime? We have a few suggestions.

Credit Line Hybrid

The credit line hybrid is unsecured business financing. It is available to pretty much anyone for any type of business expense. You can use it for real estate, equipment, working capital, and even startup expenses. Not only that, but there is no security required. Furthermore, there is no down payment, and you do not have to provide income documentation. It is completely no-doc financing.

You do need to have personal credit of 680 or above. Also, there cannot be any late payments in the past 12 months, there can be no open collections or bankruptcies, and there should be less than 4 inquiries in the past 6 months on your consumer credit report. There also has to be at least 2 open credit cards with a $2,000 limit or higher with 2 years of good payment history.

If you do not meet these requirements, you can take on a credit partner that does meet them. The payments will still be reported on the business’s credit report, so business credit will build whether you get the financing yourself or through a credit partner.

You can get up to $150,000, and often interest rates are as low as 0% for the first 6 to 18 months.

Business Revenue Lending

If your business has consistent revenue of $120,000 per year or more, you may qualify for this type of funding. Lenders verify revenue using bank statements. There can be no recent bankruptcies, but the minimum credit score to qualify is as low as 500.

A business must also be in operation for a year or more, and they must do over 5 small transactions each month to get business revenue financing.

What frustrates you the most about funding your business? Check out how our free guide can help.

Merchant Cash Advance

If your business accepts credit card payments and you have at least a 500 FICO, you could get up to $750,000 in a merchant cash advance. Credit rates are usually lower compared to traditional financing as well.

Your business must bring in $100,000 or more per year in credit card sales, and typically you can get approval equal to one months credit card financing volume.

Account Receivable Financing

Outstanding account receivables can also be a source of funding for your business. Get as much as 80% of receivables advanced in less than 24 hours. You get the rest of the accounts receivable amount once you collect full payment for the invoice. Closing takes 2 weeks or less.

Receivables should be with the government or another business. Getting financing with receivables from individuals is not as easy. If you also have purchase orders, then you can get financing to have those filled. You won’t need to use your cash flow to do so.

Equipment Financing

You can secure this type of financing by using existing equipment or new equipment you want to purchase as collateral. Funding is available up to $10 million. Terms range from 5 to 60 months, and you need a minimum 550 FICO.

The equipment must be new, and most types of equipment are acceptable, including software.

You’ll need to provide details on the equipment to be financed and, depending on the loan amount and certain risk factors, you may need to show 2 years corporate and personal tax returns.

Enterprise SBA Loans

For these loans you have to have collateral worth up to at least 50% of the loan amount, but you only need a FICO of 620. There also can be no bankruptcies in the past 4 years. Only for profit companies qualify, and they must have positive trends in sales growth. Generally amounts are available of up to $12 million with terms up to 25-years.

What frustrates you the most about funding your business? Check out how our free guide can help.

Women Owned Companies Can Get the Funding They Need

While there are some women business grant opportunities out there, they are highly competitive and rarely enough to fully fund business needs. These funding options are great for immediate cash needs, and you can work on building your fundability in the meantime. Once your business has strong fundability, you can have pretty much any business funding you need.

The absolute best way to build fundability is with the help of a business credit expert. They can walk you through the complicated web of the many factors that affect fundability, including helping you find accounts that will report to your business credit profile. That is the only way to build a business credit score.

The post How to Get Funding for Women Owned Companies appeared first on Credit Suite.

How to Get Funding for Women Owned Companies

Women owned companies are exploding onto the scene. In fact, you may be surprised to learn that companies such as Cisco, Liquid Paper, The Body Shop, Spanx, and Proactive are all owned by women.

What Women Owned Companies Need to Succeed

Women Owned Companies: Start Off On the Right Foot

Foundation of Fundability

What frustrates you the most about funding your business? Check out how our free guide can help.

Contact Information

Other Setup Information

Best Funding for Women Owned Companies Right Now

Credit Line Hybrid

You can get up to $150,000, and often interest rates are as low as 0% for the first 6 to 18 months.

Business Revenue Lending

A business must also be in operation for a year or more, and they must do over 5 small transactions each month to get business revenue financing.

What frustrates you the most about funding your business? Check out how our free guide can help.

Merchant Cash Advance

Your business must bring in $100,000 or more per year in credit card sales, and typically you can get approval equal to one months credit card financing volume.

Account Receivable Financing

Equipment Financing

The equipment must be new, and most types of equipment are acceptable, including software.

You’ll need to provide details on the equipment to be financed and, depending on the loan amount and certain risk factors, you may need to show 2 years corporate and personal tax returns.

Enterprise SBA Loans

What frustrates you the most about funding your business? Check out how our free guide can help.

Women Owned Companies Can Get the Funding They Need

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Grants for Small Black Owned Businesses

Check out Business Grants for Small Black Owned Businesses and So Much More

Looking for Grants for Small Black Owned Businesses – and Other Options

Funding and Grants for Small Black Owned Businesses

There are grants for black business owners, but not necessarily for them exclusively. Still, there are other funding choices out there. Loans, crowdfunding, also angel investors are all viable options. More on those later.

Business Grants for Small Black Owned Businesses

The Minority Business Development Agency

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

Enterprising Women of Color Initiative

The MBDA also oversees the Enterprising Women of Color (EWOC) Initiative. The initiative works to focus 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.

The Verizon Small Business Recovery Fund

National Black MBA Association Scale-Up Pitch Challenge

Demolish your funding problems with 27 killer ways to get cash for your business.

Amber Grant

Cartier Women’s Initiative Award

Cartier Science and Technology Pioneer Award and Fellowship

The laureate will be awarded a $100,000 grant. Each of the two remaining finalists will receive a $30,000 grant.

Demolish your funding problems with 27 killer ways to get cash for your business.

The Native American Business Development Institute (NABDI) Grant

Are you also part Native American? Then check out this grant.

Indian Affairs

The South Asian Arts Resiliency Fund

Eligibility for The South Asian Arts Resiliency Fund

To be eligible, applicants must be of South Asian descent. Also, they must work in the arts and demonstrate loss of income due to COVID-19. Also, applicants must be at least 21 years old. And they cannot be enrolled in a degree program. Also, they have to be able to receive taxable income in the US.

You can put grant funding toward any artistic project you can develop, create, and present within four to six weeks of getting funding. See theindiacenter.us/artsfund.

Demolish your funding problems with 27 killer ways to get cash for your business.

Grants.gov

An Alternative to Grants for Small Black Owned Businesses: Angel Investors

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

An Alternative to Grants for Small Black Owned Businesses: Crowdfunding

If you would rather not rely on grants so much to fund your business, crowdfunding is a viable option. Also keep in mind, not everyone with a campaign on a crowdfunding site is successful. 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 than others.

An Alternative to Grants for Small Black Owned Businesses: Loans

If grants aren’t an option, loans might work for you.

Business Center for New Americans

If you’re also 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 also other minority entrepreneurs. The goal is to help minority business owners who have not been able to get traditional financing. Also, terms are 3% interest. Loan repayment term goes up to a year. See accompanycapital.org.

Grants for Small Black Owned Businesses: Takeaways

The post Grants for Small Black Owned Businesses appeared first on Credit Suite.

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.

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.

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

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit.

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 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.

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

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

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 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.

Check out our best webinar with its trustworthy list of seven vendors to help you build business credit.

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.

Check out our best webinar with its trustworthy list of seven vendors to help you build 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.

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 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.

Loans, Grants, and Other Funding, Oh My! Women Owned Business Grants and Other Funding Options for Women Business Owners

There are a ton of options available to women for business funding. Some are female specific, like women owned business grants. Others are not regulated to women specifically, though they may work better for women than some other options. The key is to quilt together the options that work best for you and your needs.

Top Options for Female Business Owners, Including Women Owned Business Grants

You can look around for women owned business grants and other funding options specific to women. They do exist, but there are not that many of them. The best bet is to combine those that you can find along with options that work well for women in business, though not specifically designed for women exclusively.

Demolish your funding problems with 27 killer ways to get cash for your business.

Business Loans for Women

Hands down, business loans are the most easily accessible and sure-fire option for funding a business. This is true whether you are a woman, a minority, a veteran, have a disability, or even if you do not fit into any of these categories. It may be hard to believe, because loans cost money, right? Free money is better, and if those options are out there, they have to be better, right?

While these free money opportunities are great, they are few and far between. Not only that, but they are typically highly competitive. Definitely pursue them, but realistically you need to understand that loans are pretty necessary when it comes to running a business. Especially in the early phases. In general, the best place to start for virtually all small business owners, whether a female or not, is The Small Business Administration.

Small Business Loans from The Small Business Administration

While many start out looking for women owned business grants, you can just know that you will probably need loans at some point as well. Though not specifically for women alone, the SBA offers government backed loan programs. Many of these are perfect for women business owners, even though they are not for women exclusively.

7(a) Loans

This program offers federally funded term loans up to $5 million. The funds can be used for 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.

To qualify, a business owner has to have a credit score of at least 680. There is also a required down payment of at least 10% for the purchase of a business, commercial real estate, or equipment. The minimum time in business is 2 years. If a business is a startup, business experience equal to two years is enough.

This is by far the most popular of the SBA loan programs. Funds are available for a broad range of projects, from working capital to refinancing debt, and even buying a new business or real estate.

504 Loans

These loans are also available up to $5 million. They can buy machinery, facilities, or land. Generally, they are used for expansion. Private sector lenders or nonprofits process and disburse the funds, and they work especially well for commercial real estate purchases.

Terms for 504 loans range from 10 to 20 years. Funding can take from 30 to 90 days. The minimum credit score requirement is 680, and collateral is the asset being financed. There is also a down payment requirement of 10%. However, this can increase to 15% for a new business.

Furthermore, there is a requirement that you be in business for at least 2 years, or that management has equivalent experience if the business is a startup.

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 microloan programs as intermediaries. Unlike other SBA programs, financing comes directly from the Small Business Administration.

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. They can take up to 90 days to fund. There is a 640 minimum credit score requirement. However, the collateral and down payment requirements vary by lender.

Demolish your funding problems with 27 killer ways to get cash for your business.

SBA Express loans

Express loans top out at $350,000 and have a maximum interest rate of 11.50%. Terms range from 5 to 25 years, and the SBA guarantee is less than with their other loan programs at 50%. To qualify, your credit score must be above 680. In addition, 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 depending on the lender.

The turnaround for express loans is faster, too. The SBA takes up to 36 hours to give a decision. Necessary paperwork for application is also less, making express loans a great option for working capital, among other things, if you qualify.

SBA CAPLine

There are 4 distinct CAPLine programs that differ mostly in the expenses they can fund. Each of them carries a maximum amount of $5 million and an interest rate that ranges from 7% to 10%. Funding can take 45 to 90 days.

The four different programs are:

Seasonal CAPLines -Financing for businesses preparing for a seasonal increase in sales.

Contract CAPLines -Financing for businesses that need funding to fill a contract.

Builder’s CAPLines -Financing for businesses taking on a real estate or construction project.

Working capital CAPLines -Financing for businesses that are struggling with a short-term slump in sales.

You must have a credit score of 680 or above to qualify for these. There is no minimum time in business requirement unless you are getting a seasonal CAPline. That one carries a one year in business requirement.

SBA Community Advantage Loans

This pilot program is set to expire or extend in 2020. It’s meant to promote economic growth in underserved areas and markets. Lenders can be less strict when it comes to 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.

CrowdFunding

If you want to reduce the amount of loans you need to start and run your business, crowdfunding is a viable option. Crowdfunding gives today’s business owners a new way to build a successful business. Don’t be fooled. Not everyone with a campaign on a crowdfunding site is successful. Funding a business with crowdfunding doesn’t happen overnight. In fact, it often doesn’t happen at all. To succeed at crowdfunding, you have to research what works, what doesn’t, and then cross your fingers because truthfully it may work, and it may not.

Find which crowdfunding platform is best to use for your business. Kickstarter and Indiegogo are two of the most popular crowdfunding platforms to use. Some work better for specific types of businesses than others. Also, some may have higher success rates for women than others. Do your research.

Women Owned Business Grants

All grant programs are highly competitive. However, they are still worth the effort to apply. There really isn’t anything to lose except time. It’s free money. Women owned business grants are rarely enough to fully fund a business, but they can supplement other funding types. Here are some examples of women owned business grants.

SBA Women’s Business Centers

Eileen Fisher Women Owned Business Grants

Amber Grant

#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.

Demolish your funding problems with 27 killer ways to get cash for your business.

Cartier Women’s Initiative Award

Other Funding Options Beyond Women Owned Business Grants

While programs like those that provide women owned business grants and those offered by The Small Business Administration often work to meet the special challenges women business owners face, sometimes it just isn’t enough. If your credit score does not allow you to qualify for SBA loans, there are other options available as well. They tend to work well, though not specifically designed for women.

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 loan funds to buy equipment, finance growth or expansion projects, consolidate other debt, or hire new employees.

One benefit LendingClub offers with their small business loans that many others do not is access to a client advisor. This is someone to help you figure out how to best use your business loan funds, as well as how to budget loan payments.

The minimum loan amount at LendingClub is $5,000 and the maximum is $300,000. There is a minimum time in business requirement of 12 months to qualify. In addition, you must have at least $50,000 in annual sales. 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. There is a minimum personal credit score requirement of 560.

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 financial advisor. Their application process takes place exclusively online. The minimum loan amount is $5,000 and their maximum is $100,000. Furthermore, 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 unique 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 sort of a cross between crowdfunding and lending. They offer loans with a 0% interest rate. That means, even though you have to pay it back, it is actually free money. In addition, they do not run a credit check. The only requirement is that you have to get at least 5 family members or friends to donate money for your business. Also, you have to give at least a $25 loan to another business on the platform yourself.

Grameen

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. The result is, these loans help borrowers build credit.

Choose Your Funding Options Wisely for Women Owned Business Grants and More

For many, business funding will be similar to a quilt. Just as a quilt weaves various colors and types of fabric into a beautify, functional work of art, so can business funding work. There are various types available, and if you combine the ones that work best for you, they can work together to ensure your business not only stays running, but also growing and thriving. This includes women owned business grants.

The post Loans, Grants, and Other Funding, Oh My! Women Owned Business Grants and Other Funding Options for Women Business Owners appeared first on Credit Suite.

Government Grants for Women and Other Funding Options for Women Owned Businesses

It’s no secret that female business owners face unique challenges when it comes to finding funding for their businesses. There are a lot of options available, but it seems that whenever a woman seeks funding advice, they get a generic answer. Usually it is something related to government grants for women. However, specific government grants for women are not as common as many think.

There Are a Number Funding Options Available for Women Owned Businesses, Including Government Grants for Women

Still, there are plenty of options. Some are designed specifically for women business owners, but most are not. From private grants to government loans, women business owners can fund their businesses and be successful if they know where to start.

Government Grants for Women and From Other Sources

All grant programs are highly competitive. Even the few government grants for women. Despite this, they are definitely worth the effort to apply, as there really isn’t a lot to lose except time. It’s free money that can supplement other funding types. Some examples include:

SBA Women’s Business Centers

In addition to helping with loans, the SBA Women’s Business Centers also help women entrepreneurs get access to other types of funding. Some lend money or award grants directly, while others help connect women entrepreneurs with financial institutions. The grants that are awarded through some of these centers could be considered government grants for women, since the SBA is a government entity.

Eileen Fisher Women-Owned Business Grant

Find out why so many companies use our proven methods to get business loans.

Amber Grant

#GIRLBOSS Foundation Grant

Cartier Women’s Initiative Award

All of the finalists get to attend the INSEAD Social Entrepreneurship 6-Day Executive Program (ISEP). They will also have the opportunity to participate in workshops on entrepreneurship, business coaching seminars, and be exposed to networking opportunities. This is also a private grant.

The Small Business Administration

The SBA offers government backed loan programs, a number of which are perfect for women business owners, though not designed exclusively for women.

7(a) Loans

To qualify a business owner has to have a credit score of at least 680. There is also a required down payment of at least 10% for the purchase of a business, commercial real estate, or equipment. The minimum time in business is 2 years. If a business is a startup, business experience equal to two years is enough.

This is by far the most popular of the SBA loan programs. Funds are available for a broad range of projects, from working capital to refinancing debt, and even buying a new business or real estate.

504 Loans

Furthermore, there is a requirement that you be in business for at least 2 years, or that management has equivalent experience if the business is a startup.

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 microloan programs as intermediaries. Unlike other SBA programs, financing coming directly from the Small Business Administration.

SBA Disaster Loans

Disaster loans are available in amounts up to $2 million. They are actually processed directly through the SBA. They are available to small-business owners that have been affected by natural disasters. Terms go up to 30 years, and the maximum interest rate is 4%.

Find out why so many companies use our proven methods to get business loans.

The minimum credit score for disaster loans is 660. Collateral is necessary if the loan goes over a certain amount, usually $25,000, if it is available or when it becomes available. For a military economic injury disaster that amount is $50,000. A down payment is not necessary either way.

SBA Express loans

The turnaround for express loans is much faster. The SBA takes up to 36 hours to give a decision. Necessary paperwork for application is also less, making express loans a great option for working capital, among other things, if you qualify.

SBA CAPLine

The four different programs are:

Seasonal CAPLines -Financing for businesses preparing for a seasonal increase in sales.

Contract CAPLines -Financing for businesses that need funding to fill a contract.

Builder’s CAPLines -Financing for businesses taking on a real estate or construction project.

Working capital CAPLines -Financing for businesses that are struggling with a short-term slump in sales.

SBA Community Advantage Loans

This is a pilot program set to expire or extend in 2020. Its purpose is to promote economic growth in underserved areas and markets. Decision makers can be less stringent when it comes to 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%, while terms range up to 25 years.

Other Loan Options for Women Business Owners

While programs like those that provide government grants for women and those offered by The Small Business Administration often work to meet the unique challenges faced by women business owners, sometimes it just isn’t enough. If your credit score does not allow you to qualify for SBA loans, these options are available as well. They tend to work well, though not specifically designed for women.

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.

Lendio

Blue Vine

Kiva

Kiva has a unique lending model. They offer loans to businesses, but their platform is far different from than that of traditional or even other non-traditional lenders. It is sort of a cross between crowdfunding and lending. They offer loans with a 0% interest rate. That means, 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. Also, 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.

Find out why so many companies use our proven methods to get business loans.

Government Grants for Women Do Exist, but So Much More Is Available

It is possible to find government grants for women. They do exist. However, they are not the only option female entrepreneurs have. Since they are rarely enough to fully fund a business, it is good to know what else is out there.

When looking for government grants for women, start with the SBA Women’s Business Centers. They are going to be your best bet for information of this type. Don’t limit yourself, however. Try the other grant options mentioned above, and look around for others. New ones pop up every day. Know though, that complete funding will almost always require a loan or investor of some type, so keep that in mind as well.

The post Government Grants for Women and Other Funding Options for Women Owned Businesses appeared first on Credit Suite.

Additional Minority Owned Business Funding Sources are Available if You Know Where to Look

The United States is known as the melting pot for a reason. It is full of people with roots stretching worldwide. Some countries are less represented than others however. This means we have a lot of citizens in minority groups. In some areas of the country, the entire population is part of a minority group. In 2016, there were 8 million minority owned businesses. This was up 38% from 2007 data. If you have a minority owned business, then you have some additional funding options.

Additional Funding Options for Your Minority Owned Business

These options come in the form of loans and grants for minority owned business. You need to know where to look. You also need to know eligibility requirements. This will help you prepare your application. A great application will help to improve your chance of winning a grant or loan approval.

Check out our professional research on bank ratings, the little-known reason why you will – or won’t – get a bank loan for your business.

Minority Owned Business Grants

Grants are basically free money. You never have to pay it back. However, they are also highly competitive. In addition, they are rarely enough to completely fund a business. Still, grant money can reduce the need to borrow money.

Here are some minority grant options to consider. There are certainly others out there though. They are not always well advertised. This means you need to be sure to do your own research as well.

First Nations Development Institute Grants

This group has a mission to offer grants to help Alaska Natives, Native Hawaiians, and Native Americans. In addition to the funds, they offer assistance in the application process.

There is a wide range of opportunities from the First Nations Development Institute, with new ones rolling on as old ones roll off. Join the mailing list to be notified of new opportunities as they are posted.

National Black MBA Association Scale-Up Pitch Challenge

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

A business must be an NBMBAA member to compete. There is a $10 monthly membership fee. Then, there is an online application. If chosen, a business must submit a three-minute pitch. Finalists will go on to compete at the NBMBAA annual conference.”

FedEx Small Business Grant

This grant is the FedEx way of working to strengthen small business innovation. The company awards 10 grants. They range from $15,000 to $50,000 every year. If you’re a minority owned business owner with a cutting-edge product, this could be the grant for you.

You have to submit entry via the FedEx website. It requires that you answer a few questions about your business. This includes providing an elevator pitch about what makes your business stand out. In addition, you have to explain how you would use the grant funds. You can also submit an optional 90 second video.

NASE Growth Grants

The National Association for the Self-Employed (NASE) has small business Growth Grants that range up to $4,000. Grant recipients must be micro-businesses. Proceeds can be used to help your business market, advertise, expand, and hire employees. These grants are open to everyone. However, you do have to be a NASE member to apply. Cost of membership depends on the member level you choose.

USDA Value Added Producer Grant

The USDA’s Value Added Producer Grant (VAPG) program offers grants for small businesses. This 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. Grants are open to those in rural areas. They must be operating as cooperatives, farmers, ranchers, independent agricultural producers, or agricultural producer groups.

Minority Owned Business Resources

These resources do not offer grants or any type of funding directly. Still, they can be a great help and support in finding funding. They can also help with other issues that come with being a minority business owner.

Check out our professional research on bank ratings, the little-known reason why you will – or won’t – get a bank loan for your business.

Minority Business Development Agency (MBDA)

This agency is under the direction of the United States Department of Commerce. It helps minority business owners and minorities that want to become business owners. They have business centers all around the country. They offer help finding grants that could be a good fit. In addition, they offer help with the application process.

USA.gov

While not minority specific, this website offers a list of government resources. This includes resources for any minority owned business. It also provides links to many federal government agencies that offer loans and grants for minority small business.

Grants.Gov

This is another resource to help find grants for your minority owned business. In addition to a list of grant opportunities, it has information that can help you create a winning grant application package.

There are over 1,000 grants to dig through. Most of them are for research and development purposes. You should still take the time to look at them, as you may find one that will work well for your business.

Loans for Minority Owned Business

Loans for minority business owners can come from several different sources. Some only offer minority business loans to those in certain cities. Some are only available if you are looking to land government contracts. Each have their own requirements. It takes a lot of research to line everything out and see what is available. We have a list of some of the best options to help you get started.

Business Consortium Fund, Inc.

This program is through the US Department of the Treasury. Typically, businesses can qualify for $75,000 to $500,000 after approval. Amounts above $500,000 are possible. However, they are on a case by case basis only.

Businesses can use funds for working capital, equipment financing, and contract financing. To apply, you have to certify your business through The National Minority Supplier Development Council. In addition, a business must have a supplier relationship with the Council to be eligible.

National African American Small Business Loans

These loans are only available in Chicago, Los Angeles, and New York. They go to communities with low to medium incomes. The NASBLF provides capital to African American owned businesses that are not eligible for traditional financing options.

The range for loans is $35,000 to $250,000. Borrowers can use funds to help with cash flow, expansion, and equipment purchases. Thirty million dollars total are available each year.

Accion

Accion offers loans in all states for minority owned business. They also serve veterans, women, and those with disabilities. Low to medium income business owners may also be eligible. Loan amounts range from $200,000 to $300,000. They work to help build businesses from square one. They can also put owners in contact with other banks, non-profits, and government resources to help build a network of support.

The minimum credit score for these loans is 575. In addition, you cannot be 30 days late on credit cards, loan payments, or bills. Late rent or mortgage payments over the past year will also disqualify you.

Community Development Financial Institutions Fund

CDFI lends to communities that typically lack banking options. This includes minorities. Since the Community Reinvestment Act of 1977, banks must offer funding in communities that find it hard to get traditional funding. Big banks often fund minority business owners indirectly through their CDFI partners.

To locate a CDFI, contact the local business development center. Your local Small Business Development Center office should also be able to help.

The application process can be long. Thankfully, they do offer assistance to prepare for future bank loans as well.

Union Bank Business Diversity Lending Program

This program from Union Bank assists minority business owners with loans and lines of credit. To qualify as a minority for the program, you must be Latinx, American Indian, Asian, Alaskan Native, African American, Native Hawaiian, or other Pacific Islander.

Other requirements must be met as well. For example, you must be in business for at least 2 years, and the minority business owner must own at least 51 percent.

Indian Affairs

Native American business owners can get loans from the federal government. These come through the Indian Affairs branch. You apply with any lending institution. You just have to use the Indian Affairs application. If the funds are for construction, renovation, or refinancing, there will be additional requirements. Generally, a list of collateral, a credit report, and an analysis of business operations are necessary.

Camino Financial

Camino is an online lender that offers minority business owners loans and business solutions. All processes take place online, making it an easy option. Their microloans range from $5,000 to $50,000. They also offer small business loans between $10,000 to $400,000. There is no collateral requirement. As a benefit, you can pay off the loan any time with no penalties or fees.

Check out our professional research on bank ratings, the little-known reason why you will – or won’t – get a bank loan for your business.

SBA Options for Minority Owned Business

In addition to these options, the Small Business Administration has some programs that may work well, though they are not for minorities only.

SBA Community Advantage Loans

Community advantage loans are for underserved communities that need less than $250,000. Likewise, you can find lenders that work with the SBA on this program using the SBA Lender Match tool.

SBA Microloans

They also have microloans available of up to $50,000. Unlike others, these are offered through nonprofit organizations. With interest rates ranging from 8% to 13% and maximum repayment terms of six years, they can work well for minority business owners.

One of the SBA’s partners in this program is The Opportunity Fund. According to them, 90% of its borrowers are minority business owners.

SBA 7 (a) Loans

Like other SBA programs, these are not specifically for minorities. Still, they are available to minorities the same as everyone else. They are 10-year loans of $30,000 to $350,000. Rates range from 9.7% to 11.04%, and they can turn around in as little as 7 days. More often they take up to several weeks.

Private Lender Options for Minority Owned Business

Again, these are not necessarily only for minorities. However, many alternative lenders offer loans that work well. Specifically, minority owned businesses sometimes struggle with meeting credit score requirements. The following loans are available with a lower credit score than what most traditional lenders require.

Fundbox

Surprisingly, there is no minimum credit score. In fact, if you have at least $50,000 in annual revenue you can qualify for a line of credit from Fundbox. Additionally, you also need to be in business for at least 3 months. Amounts range from $1,000 to $100,000 with rates from 10.1% to 79.8%. Terms are for 12 weeks, and you can have your funds as quickly as the next business day.

Kabbage

Another lender that will make loans on credit scores as low as 500 is Kabbage. Terms are for 6, 12, or 18 months and amounts range from $2,000 to $250,000. So interest rates are higher, at 24% to 99%. Funding can take several days, but sometimes happens in just a few minutes.

QuarterSpot

QuarterSpot is another option. Many prefer it, due to terms that go up to 18 months. Loans range from $5,000 to $250,000, but rates are pretty high at 30% to 70%. Nevertheless, approval can happen in as little as 24 hours.

Credibility Capital

Loans with Credibility Capital range from $50,000 to $400,000. Terms are for 1, 2, or 3 years, and rates range from 10% to 25%. So like most, funding usually takes around 7 days.

SmartBiz

SmartBiz offers low cost financing for expansion. Unlike the others, these are SBA loans. However, with SmartBiz funding happens a lot faster than with traditional banks. In fact, they can take a few weeks rather than a few months.

A Minority Owned Business Has Additional Funding Options Available

It’s true. In addition to the traditional options, there are other funding resources available to help minority business owners. While many of them, like grants, will not fully fund a business, they can all reduce the need for debt. The key is knowing where to find them and how to qualify. The list above is a great starting point, but there is so much more. It’s worth the time it takes to dig in and see what is available.

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