Best Small-Business Loans for Minorities in 2016

May 4, 2016 | By Steve Nicastro | NerdWallet

Finding a small-business loan is hard — and can be even harder for minority business owners. Less wealth and fewer assets to secure a loan, among other factors, can stand between minority-owned businesses and financing, according to the federal Minority Business Development Agency.

“Collateral can be a big difficulty,” says Sasha Werblin of the Greenlining Institute, a nonprofit that works to bring capital and resources into minority communities, hard hit during the recent foreclosure crisis. The resulting tarnished credit, a red flag for lenders, has made it more difficult for some minority small-business owners to qualify for traditional loans, she says.

The average personal credit score for a minority business owner is 707, 15 points lower than the overall average for small-business owners, according to a 2016 study by Experian. And the average business credit score for a minority small business is 49.7 — nearly five points lower than the national average, the study found.

But financing is out there. We’ve rounded up some top sources for minority entrepreneurs looking for loans:

Online business lender roundup

SBA loan options

National African American small-business loan fund

 

View Full article at NerdWallet

Supporting Sponsor

The supporting sponsorship gives your company exposure at all major MMSDC events and more. Learn more

The Michigan Minority Supplier Development Council (MMSDC) is a non-profit organization promoting the economic growth of minority-owned businesses. Learn More

Become a Certified MBE   Become a Corporate Member