Small businesses are not the preferred lot when it comes to loan sanctions. What can be said about small ventures run by minorities, which includes women, blacks, Hispanics, people of other color, or the LGBTQ community, which face their own specific social biases? Fortunately, minority businesses do get some special funding options meant only for them.
Firstly, a small business must prove that it falls under this category. To do that, 51% of its staff should belong to minority groups that face social discrimination or other forms of economic and social biases. The minority business owners should seek certification or registration as a minority business, and this will qualify them for special loans or grants or schemes meant to promote equality and remove discrimination.
Minority loans are available from the governments at the federal, state or local level. There are also special schemes from alternative lenders for disadvantaged groups. The SBA 8 (a) loan is specially directed at minority businesses that are qualified and registered as such. The SBA Community Advantage Program is another initiative that helps a business get a loan when they get turned down by traditional lenders for not meeting the qualification criteria. A small business can get over $200k in loans from the 7 (a) program.
Another way out for minority businesses is to secure a line of credit. There are special schemes floated for minority owners, where the criteria have been relaxed, such as lower credit scores, or the minimum revenue requirements and the time they have been operating.
Finally, minority business grants are available from special organizations, and these are granted on the basis of race, gender, color and personal status. For detailed information, owners can search for how to get a loan as a minority and get detailed information on the process and criteria.