| Business loans are not always easy loans to | | | | institutions. |
| get, and minorities may find this even more | | | | |
| difficult. Many communities and government | | | | The legal work behind many minority |
| agencies have created programs to help | | | | businesses is what can hold up the loan |
| minorities obtain a small business loan when | | | | application process. The more well-prepared |
| they need it, but there is still a lengthy | | | | and ready the minority business owner can be |
| process to go through before the small | | | | with all documents, financial information, |
| business loan for the minority can be | | | | and records, the more likely it is that banks |
| approved. Minority business entrepreneurs | | | | and other lending institutions will want to |
| must submit a series of loan application | | | | work with them. Banks can offer various |
| materials, get a background check, credit | | | | programs that are tailored for certain |
| check, and also submit a reliable and | | | | business needs. |
| cohesive business plan. | | | | |
| | | | Referrals from key community members can |
| The most important thing to get a good rate | | | | increase the chances of obtaining a minority |
| is to have a strong credit history. Without a | | | | business loan, and possibly getting a good |
| high credit score, most lenders are required | | | | rate. Another way to reduce a rate is to |
| to only offer specific programs. Some banks | | | | break up the loan into two separate loans, |
| and financial institutions may extend higher | | | | and use different assets or collateral for |
| rates for low credit scores, poor credit | | | | each one. Some banks can help with arranging |
| history, or bad credit overall. If this is | | | | this. |
| the case, it will be harder for minorities to | | | | |
| obtain a business loan with a good rate. | | | | Financial assistance may also be offered by |
| | | | the Small Business Administration. |
| The Minority Business Development Agency | | | | Corporations can help minority business |
| helps minorities by providing training and | | | | owners. Corporations can assist with the |
| information. This can include loan and grant | | | | loan, or extend some corporate loan package |
| applications, minority businesses in the area | | | | benefits that are competitive or lower than |
| that can provide referrals and even banks | | | | standard market rates. These corporations may |
| that work exclusively with minority | | | | work as sponsors for the loan, and can help |
| businesses to create a custom loan program. | | | | the business promote itself within in the |
| | | | community as well. |
| A mentoring service by the National Minority | | | | |
| Council helps people receive special | | | | Minority businesses can get good rates from a |
| contracts through local lenders. Many local | | | | variety of resources. Community assistance |
| lenders work from referrals, and have access | | | | programs can help pull together the financial |
| to funds where they can offer a lower rate. | | | | plans and business planning specifications, |
| It's important for minority business | | | | while banks can offer strong rates when there |
| entrepreneurs to network as much as possible. | | | | is a strong credit history. Making sure |
| Networking helps people learn about other | | | | credit scores are accurate can help business |
| businesses, and there may be outside | | | | owners get a good rate right away. Still, |
| investors who are available to extend funding | | | | there are plenty of options for assistance |
| at lower rates than even banks or commercial | | | | from other resources as well. |