The minority is one of the classes in the society which are deprived of various facilities and to improve their living standard, the Federal Government has taken multiple steps and one among the same is the minority business loan. This loan helps them to start up a new business or can use the amount to expand the existing small business. But the things are not so simple because most of the minorities fail to avail the small business loan due to lack of knowledge and guidance. So, if you are facing the same issue and need small business loan, then here you will find all relevant information which is beneficial for the small business loan.
Types of Small Business Loan for Minorities
1. Small Business Administration
It is a government agency which acts as a link between the lenders and the borrowers. The firm usually set the guideline for the lender and also acts as a guarantor so that the lender gets secured against the small business loan. SBA launched various loan programs and 7(a) is most common which enables the borrower to utilize the amount in capital cost and the purchase of the equipment. SBA 8(a) loan program helps the minorities to get the small loan from the lender. But as per the research, it is found that getting a Unsecured business loan is quite difficult because the lenders refused to provide the loan because of less profit. To minimize the same, SBA offers a 2% fee for the loan amount which is less than $150,000.
Community Advantage Loan comes under the category of SBA loan and through the same, the borrower can avail the loan up to $250,000 and the firm acts as a guarantor up to 85% of the loan amount. This program is framed especially for the minorities so that they can get the small business loan in an effective manner.
2. Accion
Accion is an internationally recognized microloan organization which supports the minorities by offering the microloan. The loan amount usually lies in the range of $300-$300,000 and the amount depends upon the nature of the business the repayment capability.
3. Union Bank
As per the direction of the Federal Government, the banks have to provide the financial assistance in the form of loans to the minorities and Union Bank came at the top and offers the small business loan up to $2.5 million. But to avail the same, the borrower must have to fulfill the terms and conditions prescribed by the bank.
4. NASBLF
The National African American Small Business Loan Fund is an organization which helps the minorities to start their own business. The organization is the result of the joint effort done by the JP Morgan Chase and Valley Economic Development Centers. With this program, you can avail the loan as per your business need in an efficient manner.
5. Business Center for Americans
The firm mostly supports the refugees, immigrants and the minorities by offering the small business loan of $5000 to $50,000. This amount enables the minorities to enhance the business and also supports them who fail to get the business loan from the traditional banks.
Apart from the loans offered by the Government agency or private, there is another source of revenue which helps the minorities to expand the business and that is known as ‘Grant’. It is provided by the Government to the minorities so that they can enhance their small business in an efficient manner. As per the Federal Government schemes, there are various grants and some of them are listed below.
Types of Grants provided by the Federal Government to the minorities
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Minority Health Grant Program
If the nature of your small business is Health, then you can avail this grant to utilize in your business by offering various health supports to the people and you can also spread the awareness health program to the minority class.
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Community Grants
If the root of your business is agriculture and need to expand the same but failed to get the financial assistance, then you can avail the community grant. This grant will help the minorities to raise the agricultural output and this will help the Nation and will build the business too.
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Rural Business Grants
The Government always wants to do some fruitful job in the rural sector and for that, they have provided the rural business grant to the minority. This grant has a dual benefit, the first enable the minorities to boost the business and the second will led to the development of the rural sector. The net loan amount which you can avail for a small business loan is $100,000.
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Water and Waste Disposal Grant
If your business deals with the waste disposal and the conservation of water in the tribal land then you can avail the loan. This loan is exclusively for the minorities whose business is in the tribal land and their aim of the business is to improve their living condition by removing the waste disposal and offering pure drinking water by utilizing water management system.
These were some of the grants for the minorities and apart from that, there are several Government programs for the minorities which can help them to expand the business. Here, you will get a few of them which are beneficial for you.
Various Government Schemes for small business loan for minorities
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Minority Business Development Agency
This agency comes in the department of commerce whose prime aim is to improve the living standard of the minorities and for the same, the agency offers small business loan to them so that they can utilize it in a business in an effective manner. The agency has opened various centers in the region so that more and more minorities can avail the benefit of such schemes.
- HOPE
It is one of the empowerment program launched by the Government which offers various assistance to the minorities amid running the business such as workshop, guidance, counseling and significantly more. So, if you need a small business loan then you must utilize the features of the HOPE.
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Minority Business Development Agency
This agency offers the equipment which is needed in the business and also provides education to the minorities entrepreneurs. So, if you are looking for support to enhance your business, then rush to the minority business development agency. Once your application is approved, your business will reach the sky-high level.
Hence, these were some of the loans, grants and Government schemes for the minorities which can help them to expand the existing business. The new entrepreneur can also access the features of the same to start a new business. So, grab the opportunity offered by the Federal Government and the banks to boost your business.
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