How to Get Business Funding and Grants for Minorities
Because of Covid-19, life has changed dramatically in a brief amount of time, and small business owners have been the hardest hit by the pandemic. Small companies, especially those owned by minorities, need financing more than ever as the economic environment changes. When it comes to applying for loans, minority company owners face a greater drawback, but there are still lots of special financing solutions open.
Small Business Grants for Women
Amber Grants for Women: ambergrantsforwomen.com/get-an-amber-grant/apply-now
Female entrepreneurs will qualify for a variety of fantastic grants. The Amber Grants for Women program offers eligible female entrepreneurs $4,000 a month. The Amber Grant has a monthly submission process that allows the business owner to tell the story of how their company came to be. The filing fee is $15, and the owner is directly entered into a $25,000 grant program at the end of the year.
Cartier Women’s Initiative Award: cartierwomensinitiative.com
The Cartier Women’s Initiative Award is for women who have been running early-stage businesses for two or three years. An early-stage company is one that has not yet produced earnings or sales, or one that is only an idea. The enterprise must be a completely new for-profit business venture that the team has created from the ground up. To be registered, the company must also be incorporated. To be accepted, the project leader must be a woman in the capacity of Founder, Director General Manager, or Project Leader, as well as the main shareholder, CEO, or Chairman. Up to two co-founders will be welcomed if both are women, and they will be asked to represent their idea to the CWIA in the awards. Every region’s seven laureates will receive $100,000, while the fourteen finalists will receive $30,000 each. To get their company off the ground, a typical business requires $10,000.
Grameen provides women-specific microloans ranging from $2,000 to $15,000. Grameen also provides free financial education and assistance services. Payments are also reported to Equifax and Experian. Grameen has a 99 percent payoff limit, which helps borrowers create equity.
Small Business Funding for Native American Entrepreneurs
First Nations: firstnations.com/grantmaking
The First Nations Development Institute’s mission is to support Alaska Natives, Native Hawaiians, and Native Americans by providing grants. In addition to supplying grants, this agency assists with the application process. There are currently no available grant options for this year, although this could change soon. Visit their website for the most up-to-date statistics.
Rural Business Development Grants: rd.usda.gov/programs-services/rural-business-developmemt-grants
Rural Business Development Grants for Native Tribes provides small rural enterprises with technical support, training, and financing. Opportunity funds are limited to 10% of a company’s gross annual funding and are only available to federally recognized tribes.
Small Business Funding for African American Entrepreneurs
National Black MBA Association: nbmbaa.org/scale-up-pitch-challenge
The National Black MBA Association Scale-Up Pitch Challenge is designed to assist younger entrepreneurs with an African promoter who retains equal control. The grand prize is $50,000, with a second prize of $10,000, a third prize of $1,500, and a $1,000 prize for the people’s vote.
Small Business Funding for Latinx Entrepreneurs
Camino Financial: caminofinancial.com
Camino Financial is a lender that focuses on Latinx-owned companies. This foundation gives out prizes of up to $400,000. Camino Financial also provides same-day quotes and finance in as little as 24 hours.
Small Business Funding for Members of all Minorities
Union Bank: unionbank.com/business/lending/diversity-lending
The solutions offered by Union Bank are designed for small enterprises seeking loans of up to $2.5 million. Your company’s annual revenue must be less than $20 million to count. For UCC- and equipment-secured loans, they sell fixed rate, unsecured or secured term loans with terms up to 7 years. Owner-occupied industrial real estate lending on terms up to 25 years. Annually renewable variable-rate, unsecured, or insured lines of credit.
Accion is a micro-lending platform that provides pre-existing and start-up companies with loans ranging from $300,000 to $1,000,000. Minorities, veterans, women, people with disabilities, and low-to-medium-income business owners are also eligible for Accion loans.
SBA Community Advantage Loans: sba.gov/funding-programs/loans
Small business owners who do not qualify for conventional lending should apply for SBA Community Advantage Loans for Members of All Minorities. Local mission-based lenders, such as nonprofit groups, are encouraged to make loans of up to $250,000. The SBA will guarantee up to 85% of the loan, and the interest rate will be prime plus 6%. This is an excellent choice for minority businesses in search of a substantial sum of money.
SBA Bailout Funding: congress.gov/bill/116th-congress/senate-bill/3548
The CARES Act provides SBA bailout funding for all entrepreneurs to counter the economic effects of the COVID-19 epidemic. The bill allows for emergency loans to be made to companies in financial trouble. The bill creates forgivable bridge loans and funds them, as well as providing extra money for grants and technical assistance. Congress is now debating whether or not to increase funding for the service.
Minority entrepreneurs may have difficulty obtaining financing, but there are several special options available to females, Native Americans, African Americans, and Latino business owners.