Getting the funds you need is a major hurdle for any small business owner, but it’s especially challenging for women, Black, Latino and minority owned or run businesses. Lack of funding can lead to delays in launching or expanding your business, and it may result in lower sales and growth. This is why it’s important to know about all the resources available to help you secure financing, including grants and loans for minorities.
Aside from bank loans, which offer fixed interest rates and repayment terms up to 25 years, there are a few other sources of minority-specific funding. For example, Union Bank offers a small business loan product called the Business Diversity Lending Program that provides funding up to $2.5 million and has less stringent credit guidelines than traditional Union Bank business loans.
Other funding options include nonprofit lenders like Grameen America, which helps entrepreneurial minority women build business and enable financial mobility by providing microloans, credit and training and networking. And there are also programs that match entrepreneurs with investors, like Kiva, which connects people to borrowers via its network of 1.6 million lenders and allows up to $10,000 in no-interest financing for businesses.
Other options include government-funded grants for minority business owners, like the Operation Hope 1 Million Black Businesses grant and the Amber Grant. You can also seek out private business grants that are specifically geared toward women, minorities and veterans. For example, Hello Alice’s Mastercard Strive Grant gives $5,000 grants to Black female business owners and pairs it with mentoring with a lawyer, access to networking events and discounts on LegalZoom products and services. small business loans for minority women