All businesses need funding to grow and thrive, but securing those funds isn’t always easy, especially for minority women. In fact, 45% of startups fail due to lack of capital, and securing loans is often difficult for entrepreneurs with minimal revenue. Luckily, business loans for minorities are available and can offer the monetary boost that small businesses need to grow and flourish.
Whether you’re looking to open up a new location, purchase equipment or hire additional staff, there’s a business loan for you. From traditional business loans from credit unions and community development financial institutions to online lenders, there’s plenty of options for female minorities seeking to invest in their businesses. And because these loan programs are specifically engineered for minority business owners, they typically come with competitive interest rates and more flexible repayment terms.
Other financing options for minority women include grants, which are non-repayable gifts of money to fund your business, and a line of credit that lets you draw cash as needed. You can find grants through a variety of organizations, from the aforementioned Fearless Strivers Grant Contest to Flawless by Gabrielle Union, which awards three Black women entrepreneurs $25,000, a one-year LinkedIn Premium membership and a mentorship session.
The most popular option for business loans is from a bank, but qualifying and receiving approval can take months. Alternatively, you can find business loan options through nonprofit lenders, like Kiva, or online, which offer faster turnarounds and more lenient credit requirements. business loans for minority women