Are you a minority? Do you dream of one day owning your own small business? Then the U.S. Small Business Administration can help you gain the financing you need to start your own restaurant, boutique shop, hardware store, or other small business. The government agency’s 8(a) Business Development program provides minority business loans to a select group of minority entrepreneurs. And the good news? We can help you boost your odds of qualifying for one of these loans. We can also help you find private sources for additional small business loan money to help you achieve your goal of owning your own business.
The Small Business Administration’s minority business loans are not available for every potential entrepreneur.
- Only certain minority groups qualify. These groups include African Americans, Native Americans, Asian Pacific Americans, Hispanic Americans, and Subcontinent Asian Americans.
- The program, though, does contain a bit of a loophole. Individuals can qualify for minority business loans through the Administration even if they don’t belong to one of these minority groups. They just have to provide evidence that they have suffered from bias or discrimination and are economically disadvantaged.
Negotiating the Process
Minority business loans present a tremendous opportunity for potential entrepreneurs. But to qualify for these loans, you’ll have to demonstrate not only that you are a member of a certain minority group, but that you can pay back your monthly loan payments on time.
To do this, you’ll need:
- Good credit: Your three-digit credit score tells lenders whether you have a history of paying your bills on time and successfully managing your credit. If your score is too low, it shows lenders instead that you have plenty of missed payments in your past. A low credit score could hurt your chance of qualifying for minority business loans.
- Business plan: You’ll need to provide a written business plan to lenders, whether applying for a minority business loan from the Small Business Administration or for a more traditional business loan from a bank. This plan should spell out how you will market your business, bring in customers, and expand your company.
A helping hand
Qualifying for minority business loans remains a challenge for many entrepreneurs. The process is daunting, and it’s little wonder that many potential small business owners never pursue the financing they need to make their entrepreneurial dreams a reality. We can help. We have experience helping business owners qualify for the minority business loans they need to fund the start-up costs of their businesses. And we can help you, too. With us at your side, you can dramatically improve your chances of qualifying for the financing you need. Call us today, and take a step closer to your business goals.