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