Minority Business Funding

Find funding for minority businesses to get your business off the ground
By Shannon Tani Minority business lenders face specific challenges when looking for minority business funding. Specifically, minorities are less likely to fit the profile that lending institutions are looking for in their borrowers. This can make it hard to find funding for minority businesses.

If you need minority business funding, it's best to follow these steps:

1. Learn everything you can about how to obtain funding for minority owned businesses. You should understand all of the options available to you, both as a minority and as a business owner. You also need to know your responsibilities when it comes to taking out business loans.

2. Gather the data you need to apply for minority lending. Banks and other financial institutions want to see the same things before they loan money to businesses, regardless of whether they are minority-owned. You will need to show a business credit score, a business plan and preferably prove that you already have the income needed to start making payments on the loan.

3. Apply for minority small business funding. Once you have gathered all of your data, apply to several different lending companies so that you can compare offers. You'll get the best rates this way.

Apply for grants to cover minority business financing

The government offers grants to some businesses to help them get started. This form of federal funding for minority small business typically goes to non-profit organizations, so your chances are better if your business is non-profit.
Try:  Go to Grants.gov, the official source of government grants. You can search for a grant that matches your type of business. You can also search for grants through the Catalog of Federal Domestic Assistance.

Get a loan from companies that specialize in minority business lending

Traditional banks are not always the best choice for minority business owners. They will turn you down if you don't meet their requirements. Instead, consider looking for companies that offer minority business lending services.
Try:  Business Lenders prides itself on lending money on a personal level. They want to hear your story and see what you can do. Alternatively, it's a good idea to search for a lender that the Small Business Administration has approved.  Local offices of the Minority Business Development Agency, part of the Department of Commerce, can help you prepare applications for funding for minority business. 

Look for minority business lending programs that cater to women

Women business owners have many options when looking to start a business. They simply need to know how to obtain funding for minority women owned business.
Try:  Count Me In and The Women's Funding Network both specialize in offering funding to women-owned businesses. These are both great resources for women business owners.

• Despite what you may have read in ads, it is not easy to get federal funding for minority businesses, especially in the form of grants. There is a lot of competition for grant money. If you want grants for your business, make sure that you hire a professional grant writer to write the proposal.