Small Business Loans for Minorities with Bad Credit
Small Business Loans for Minorities with Bad Credit: In this article, I talk about small business loans that are available for minorities. Even if you have bad credit, now one of the best resources to look at is known use as Union Bank, and here’s an actual link to their website. You could simply Goggle Union Bank and be able to easily find it there. You can get loans and lines of credit up to $50,000. They offer secured and unsecured programs they offer fixed and variable rate programs. To qualify you must be in business for less than two years and have revenue under 15 million dollars.
Now there another great resource to check into this known as the national minority supplier development council. What they do is help you get certified as an MBE if you’re not familiar with MBE’s don’t worry. Go to their website and now actually able to give you a little bit more specifics. Once you’re actually certified and connect with opportunities in their network actually access working capital. And this is long-term financing with very good rates definitely a resource you want to check out.
There is also an SBA 8 (a) which is the business development program. That can help minority-owned firms developing growth through counseling, training, and management guidance. It’s actually not a loan program but what will happen is by participating you increase your chances of securing. SBA 7(a) working capital loan with rates usually around 7% with longer terms, now revenue lending.
If you have a cash flow of over 10,000 a month is a great program although this is specifically designed for minorities. It will help you in any it’s probably one of the easiest loans out there to get approved for regardless if your minority or not. So revenue lending if you have cash flow over $10,000 a month you can get approve even with credit scores down to 500. This is fast easy money rate is a little bit higher but again is part of the easiest money to get especially.
If you have credit issues, and there’s another program known as an asset-based program. Which gives you super low rates 1-5% interest and credit doesn’t really matter with these programs at all. So works for star-ups and also works if you have no cash flow now to get approved. You going to have some kind of collateral such as 401k, stocks, inventory, or even equipment.
Business credit is a must for any business owner with any kind of credit issue cause when you build your credit for your EIN. That could be used to qualify you for loans instead of your consumer credit. It can help offset damage to your consumer credit and still get your loan approved.
You can use business credit to get large credit lines such as 5-10,000 dollar credit cards in multiples. Many getting multiple of this kind of credit cards within 6 months or less. You can get 3,4,5,10 thousand dollar credit cards to places like Apple, Dell, Staples all different kinds of retail stores. That can help you build your business and again it when done properly business credit didn’t even look at your consumer credit and you can still get approved. Now other places that you want to go and check into to get help, the U.S. Department of Commerce’s Minority Business Development Agency.
They have a lot of great resources that are available for you through this agency to be able to come in and get business financing. You also want to check with the small business administration which also has several other good resources that might work for you. Now there are some agencies out there too, that you probably want to check into the ACCION USA. We can get up to $50,000 that Delaware Access program the Illinois Minority, Women and Disabled participation loan program.
The Mississippi Development Authority Capital Access Contract pro Loan program the Massachusetts capital access program. Now, some of this stay specific if you don’t live in the state. You probably can’t get the money but this just brings up a good point. There’s a lot of state money in your stay that’s available for minorities. So even if you don’t live in a state on this list. You still want to check with your state to see what other kinds of programs might be available for you.