Regardless of background, the most important factor in securing small business financing is a strong business plan. Having a good understanding of your business needs and a clear path to fulfill them is a great start to obtaining financial help to start or expand a business. Keeping that in mind, additional resources are available to help the development of women and minority owned businesses.  These opportunities are designed to maximize the potential of women and minority entrepreneurs and promote sustainability in the business community.

 

Federal Loan Guarantee Programs

 

Although federal and state governments do not provide grants to women and minorities for starting a business, the Small Business Administration is one of the largest loan guarantors in the country.  This gives businesses the opportunity to apply to certified commercial lenders for loans that are backed by the government.  SBA does not discriminate against any group and therefore does not provide funding specific to only one demographic; however, individual certified lenders are inclined to award loans to many women and minorities businesses.  Recent studies show that SBA-backed loans are three to five times more likely to be made to minority and women owned businesses than loans made by banks. SBA local offices can help you contact a certified lender in your location for more information.

 

Community Business Development Programs

 

Several state and local economic development agencies provide loan programs to assist women and minority owned enterprises.  Eligibility varies by programs, but most of them are provide start-up financing and working capital for small businesses.  Visit the women owned businesses and minority owned businesses pages to find information on these programs.

 

The Minority Business Development Agency (MBDA) is another great resource for financial assistance. As the only federal agency specifically created to foster growth of minority owned businesses, the MBDA has strong relationships with local lenders that helps promote its agenda. The MBDA does not personally provide funding for women and minority small businesses but uses its resources to assist them in securing capital elsewhere.

 

Additional Resources:

Message Edited by BobK on 04-03-2009 10:03 AM