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Minority business loan tips

Traditionally minorities have found it difficult to secure business start up funds, loans, and other help in the world of small business and entrepreneurship. Cultural, societal, economic, and racial or religious differences have all played a role in the success or lack of success of minorities in the business world. However, there are specialized loan programs set up for minority business owners and entrepreneurs to help them overcome some of these differences, and start or operate successful businesses.

Tip one: Try for an SBA loan.
Minority business loans are offered by the SBA, and they have a variety of loan programs that are set up to cater to the needs of the entrepreneurs of various backgrounds and cultures. One such SBA loan package offers individuals more access to loans of lower value. The Small Loan Advantage loans provide borrowers more access to loans up to $250,000 with 85% backing from the SBA. Minority business owners and entrepreneurs might also try for the SBA Community Advantage Loan. This program provides financial access to people who are poor yet deserving of help. It is specifically for certain lower income communities, many of which minorities come from. Like the Small Loan Advantage, borrowers who avail of the Community Loan Advantage can loan up to $250,000. These are both great minority business loan options.

Tip two: Look into private loans and non-profit organizations.
There are many private companies and non-profit organizations with focus on helping minorities. If a government loan does not work for you, or doesn't quite fit the bill, you may be able to find a private one that will work better. There are quite a few private groups out there that offer small business loans to members of minorities. Many of these companies also offer help aside from loans, or in addition to loans. For example, they may offer technical assistance, training programs, business development, and coaching to help minorities succeed in the business world.

Tip three: Look at minority groups.
There are certain organizations set up specifically to help minority groups, and that may help minority business owners obtain funding. You can check with your local community officer to see what groups are in your area, and if they offer any assistance with business loans. Another great option could be Operation Hope. They are a global organization that specifically reaches out to areas like South Africa, Haiti, etc. and provides small business loans to minority members and people from low-income backgrounds, as well as providing them with coaching, classes, and training such as financial workshops and management classes.

If you are a minority entrepreneur or small business owner, do not give up hope, look into programs designed specifically for your aid if the traditional loans are outside your grasp. It may take some time and effort on your part, but it can be well worth it if you get the funding you need to start your business.

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