When you look for small business startup loans for minorities, you should consider SBA loans for minority-owned businesses first. The possible loan amount of such loans is $30,000 – $5,000,000 with APR of 6.1% – 9.21%. This option is good if you need working capital or commercial real estate and have a stable and reputable business.
Your credit must make up 680+ and annual gross revenue $120,000 and more. It’s not the fastest loan. Usually, borrowers have to wait from 30 to 90 days. You won’t qualify if you search for small business loans for minorities with bad credit.
A reasonable choice is CDFI small business loans for minorities. Government finances this option and disadvantaged people with bad credit or not substantial collateral can qualify for a loan and even face affordable terms! You can expect $250,000 – $10,000,000 in commercial real estate loans but it’s also possible to apply for microloans and alternative loans. You can find CDFI loan near you.
The other step for people looking for business loans for minorities is traditional small business loans for minorities. These loans you can find in traditional banks such as Wells Fargo or Chase. This variant is far from relatively reasonable programs from SBA or CDFI. This option is suitable for people with good credit.
If you need to start up business loans for minorities with bad credit, you should go back to CDFI loans.