Business Loans for Minority Owned Companies

Whether you’re just starting out in business or have been running a company for years, there will likely come a time when you’ll need to invest more money than you have in order for it to grow and flourish. While it’s hard enough for all new entrepreneurs to secure financing, women and business owners of color are often at a greater disadvantage. Minority-owned businesses are denied financing from traditional banks at higher rates than white-owned businesses, according to a Kauffman Foundation report. These low approval rates often discourage owners of these firms from applying for bank funding, putting them at risk of turning to predatory business lenders. When minority businesses do receive small business loans, owners may end up paying higher interest rates.

A small business loan can help you hire the staff you need, upgrade your equipment, open a new location, or do any one of the many things that will make you more successful. By putting in some work before you apply, you’ll increase your chances of being approved. As you go through the process, remember to keep your audience in mind. Think about every part of your application from the lender’s point of view.

Be persistent and thorough. Even if you’re turned down by several different lenders, that doesn’t mean everyone will say no. From the research you’ve done, put together a top-ten list and work your way through it, tweaking your business plan, if necessary, based on the feedback you’ve gotten. If your application is denied, find out why and make whatever adjustments you can.

You can also consider alternatives to banks. State and local economic development agencies, as well as numerous nonprofit organizations, and microlenders provide low-interest loans to small business owners who may not qualify for traditional commercial loans.

Many of us share the dream of starting our own business. Unfortunately, minority-owned businesses face an unfair struggle in some arenas. That’s why federal government programs and private sector organizations have stepped in to help provide support and resources to create an equal playing field. When you’re ready to take the leap toward owning your own business, know that you have educational tools, funding options, and networking groups available to help you achieve your dream.

Do you need a loan? Get in touch with our lenders.

Our lenders offer simple and affordable loans to small businesses who find it difficult to borrow through a bank.

Camino Financials

Specialize in loans to Minority Owned Businesses. FICO 600 or better. 30% of our borrowers have no credit history. 50% have less than $1,000 in their bank acount at the time of the loan.

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