Minority small business loans are available at some banks and loan companies because of the incentives given by the government. This is a stimulus given to help increase the growth of company ownership and business development among minority groups, women and single mothers. If you have been turned down for a bank loan, try again if you qualify for minority business loans which are available at several government agencies and groups. This is a very good way to get funding required to start your own business. In fact, this is recommended over the more common unsecured personal loans which may have easier approval rates.
Minority Business Development Agency (MBDA)
The Minority Business Development Agency (MBDA) is created to help borrowers get access to such financing. There are centers in every state with experienced staff members to help anyone apply for a minority small business loan as well as provide advice on company start up and management. These MBDA centers can help you put together your business plan, which is needed for the loan application, and any assistance you may need in areas such as marketing, recruitment, partnerships etc.
SBA Financing for Minority Applicants
You can also seek help from several development agencies within your local area with regards to alternative funding. Due to poor economic performance, traditional bank sources are more choosy when it comes to small business loan applications. However, the SBA guarantees financing for approved minority applicants and that is sufficient to help you get a company started, money wise. Check out lenders that are approved by the government to give minority small business loans.
You can also try smaller investment companies willing to finance a minority small business. However, you have to be denied a loan from traditional bank lenders before applying. Some basic requirements you need to be aware of are 1) the business must be located within the US or its territories, 2) the business owner must have substantial investment towards the new venture.