Minority small business loan grants
MBDA is not just for helping minority businesses get financing, but helps in other areas as well. They have a number of centers set up to help minority entrepreneurs with business plan writing, creating marketing plans, managing finances, getting IT help, and more. This is a great help for many minority business owners, especially if they do not have access to funds to hire help in these areas.
Although the SBA is not involved in offering minority grants, they do guarantee loans up to $250,000 for starting up a minority owned business, or expanding one. The SBA eligibility requirements must be met in order to receive this guarantee, and you must find an SBA partner commercial lender to provide the loan. Wells Fargo and Bank or America are both well known for lending to minority groups.
What are the eligibility requirements for minority small business loans guaranteed by SBA? They are as follows:
Next, you have to be a for profit business. Non-profits are not eligible. In addition to being a for-profit, you also have to be profitable. One of the past two years has to show positive cash flow.
Next, you have to have personal credit that is good. You can't get an SBA loan with poor credit history. The SBA is guaranteeing the loan, and they need reassurance that you are going to pay the loan back according to the terms and conditions set up.
Next, you have to have good business credit. If you have not established business credit, you will require great personal credit.
One of the things worth knowing is that most minority small business loans and grants come in the form of a line of credit. Loans can be as much as $250,000 and lines of credit usually range from $5,000 to $100,000.
Loans and grants can help a minority run small business to get the financing needed and cash flow required to grow, expand, or even just get off the ground. Understanding the programs available to you, and taking advantage of them can help your business succeed where it might otherwise have failed.
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