As of 2015, the Small Business Administration 7(a) loans, small business loans from the Union Bank and specialized financing from the partner companies of the National Minority Supplier Development Council are loans for minority-owned businesses, reports Fundera. The SBA Community Advantage program, SBA Microloan program and the Accion U.S. Network are also loan sources for minority business owners.Continue Reading
Qualifying members of the SBA's 8(a) Business Development program are likely to obtain a 7(a) loan, notes Fundera. The program features counseling sessions and business management workshops for minority business owners, offers government contracting opportunities, and helps minorities keep their minority business enterprise or disadvantaged business enterprise certifications.
Through the SBA Community Advantage loan program, nonprofit organizations and other mission-based financial institutions provide up to $250,000 in loans to minority-owned businesses as of 2015, states Fundera. SBA guarantees a maximum of 85 percent of the loan, urging lenders to approve disadvantaged loan applicants. Through the SBA Microloan program, third-party lenders provide up to $50,000 in loans along with management assistance.
Union Bank offers up to $2.5 million loans with lenient lending requirements for minority business owners, while the NMSDC assists minority business owners in obtaining MBE certifications, explains Fundera. NMSDC's corporate members offer contracting opportunities and access to different financing options. Accion U.S. Network's microlending program focuses on providing loans to minority-owned businesses with low or moderate profits.Learn more about Credit & Lending