Small Business Loans

• Small business loans are usually for only small amounts, loaned over several years at a time. These loans rarely go above $10,000. Minority businesses financing large projects can attempt to find more than one lender, but minority loans are typically offered by only a few organizations, and the number that one business can obtain is limited.
  
  

SBA

• The SBA, or Small Business Administration, has a limited number of funds assigned annually to small businesses. The SBA tends to offer loans to all small businesses alike, but minorities are welcome to apply and have certain advantages. The SBA offers some loans based on disaster recovery or low income areas, and, statistically, minorities are more likely to qualify for these loans.
  
  

MBDA

• The Minority Business Development Agency, is the only federal government agency that offers loans specifically for small businesses. Each year the MBDA receives a certain amount of money that it in turns gives to banks in minority communities to give to minority businesses. The MBDA also helps gather and coordinate loan programs for minorities across several government organizations, including the Department of Agriculture and the Small Business Administration.
  
  

Additional Organizations

• The federal government is not the only organization that offers loans to small businesses. Large businesses, especially banks and similar lenders, may offer similar loans to help strengthen their communities and develop their own business--small business minority owners should ask nearby lenders like Bank of America or Wells Fargo if they have any such programs. Nonprofit organizations such as New York's Project Enterprise or Restoration Capital Fund, which have connections to banks and state governments, often offer loans to help specific minorities such as women or African-Americans.
  
  

Techniques

• A small business minority owner can obtain a loan much more easily with a well-written application. Being a member of a minority is not usually enough. The business owner must also specify what the loan will be used to accomplish and should be prepared to offer financial data on the business, including forecasts of future profits and detailed plans for increasing revenue and benefiting the community.