Best Small Business Loans For Female Minorities (2020 Options)

Whether you’re five days or years into growing your business, it’s no secret that you need funding. Small business loans for female minorities can make a pivotal difference between coasting and thriving. Unfortunately, for many business owners, getting funding isn’t always the easiest task. 

Business loans for minority women aren’t hard to come by—there are plenty of programs on the market. To find the right minority business loan for your growing business, though, you need to look in the right place.

This guide will tell you everything you need to know about small business loans for female minorities, and what you can do to get started on your search.

small business loans for female minorities

Start Up Business Loans for Women-Owned Businesses: What You Need to Know

All businesses need funding, but without any existing revenue, startups are in especially dire need. According to one study, 45% of startups fail due to a lack of capital or ability to generate profits.

The primary obstacle is that accessing small business loans for minority women can be challenging. Many lenders will be skeptical about approving loans until you’ve proved your ability to generate profit. 

Banks will want to see that you’ve been profitable for at least two years. Alternative lenders, on the other hand, consider revenue over more traditional criteria—as long as you’ve been in business for at least six months, you’ll generally have options.

While you can qualify for startup loans, prior to this stage, you may not be able to find an ideal offer. Even if you can’t find a small business loan as a female minority, you can still look elsewhere for funding

Small Business Grants for Start-Up Businesses

Unlike loans, which you’ll have to pay back with interest, grants give you free funding. There are, however, two main caveats to this.

First, and most notably, grants are generally issued with a much lower amount than loans. Nonetheless, this funding can still help you along the way until you can qualify for small business loans as a minority woman.

Secondly, small business grants for minority women can be competitive. Generally, loans are given to all businesses that qualify. While some grants may award more than one winner, there is normally a finite amount of money to be distributed.

By taking the time to perfect your application, though, you can maximize your chances for winning.

  • Eileen Fisher Women-Owned Business Grant Program: This grant offers 10 prizes of up to $10K every year. It’s not exactly for startups, but can help young businesses. To qualify, you need to be in business for at least three years. Winners for this small business grant are selected based on how they drive social and/or environmental influence. 
  • Amber Grant: The Amber Grant provides $2K to one business per month, and one winner with $25K at the end of the year. For consideration, you need to tell the story of your business.
  • #GIRLBOSS Foundation Grant: Offering a $15K prize, this small business grant helps small businesses owned by women in the fashion, music, design and art industries. Winners also access other benefits, like free online exposure.
  • Minority Business Development Agency: This agency, which helps drive the growth of small businesses owned by female minorities, offers a variety of federal grants. Be sure to check out their website for more information.
  • NASE Growth Grant: The National Association for the Self-Employed also offers up to $4K in scholarships each month. To qualify, you must be a member of the organization.

It might not cover all your costs, but winning a small business grant for minorities can certainly help you on your quest for funding.

Small Business Administration (SBA) Financing Options

If you can qualify, then funding through the SBA might be the best small business loan for female minorities you can find. Also known as the Small Business Administration, this organization helps drive the growth of America’s small businesses.

These options are federally backed, which often makes them the best available. Qualifying, though, can be tough and time-consuming.

SBA Loan

Many small business owners consider this the best loan option on the market. Because SBA loans are federally backed, they offer low rates and long terms. 

While long terms can be enticing, be sure to remember that this structure is best for improvements that don’t directly help you drive revenue. If you’re putting funding toward something that directly impacts revenue, then it might make sense to pay down the loan faster.

SBA 8(a) Loan

The SBA 8(a) program is a small business loan for female and other minorities, helping small business owners access equal opportunities. 

To qualify, your business must meet certain requirements, including at least 51% ownership by citizens that are economically and socially disadvantaged. There are also other requirements related to income and net worth.

Additionally, this program opens the door to other resources, including marketing assistance.

SBA Microloan

The SBA Microloan is another great minority business loan (though it’s not exclusively for minority business owners). It is, however, a great option for small businesses that only need a small sum of cash that are taking a new leap.

The average loan size is $13K, but you can qualify for up to $50K. There aren’t many restrictions about how funding can be used, but it can’t go toward real estate, or refinancing other debts.

Like other Small Business Administration loans and grants, the main caveat is that the application and turnaround time can last quite a long time. If you have a new opportunity on hand, then it may be worth considering alternative lenders, which can deliver approvals and funding faster and easier.

Other Financing Options for Minority Women Owned Businesses

Before deciding on a specific small business loan for female minorities, be sure to consider all your options. This includes options available at banks and online lenders.

While banks offer lower rates, the application and approval process tends to be long and drawn out. If you can qualify, you should consider it—as long as you don’t forfeit your opportunity in the meantime.

Online lenders offer a streamlined process that provides your options in minutes and can help you get financed in just a few hours.

Small Business Loan (Term Loan)

Small business loans provide cash that you’ll pay back at a set rate over a predetermined term length. While small business loans for female minorities are readily available through most lenders, be sure to do your research.

At banks, qualifying and receiving an approval could take months. Through an online lender, though, you can receive options in minutes and funds in just a few hours.

Business Line of Credit

While it’s not technically a small business loan for female minorities, business lines of credit are another popular financing option. Unlike conventional term loans, this financing option allows you to draw more as you go.

You’ll only pay interest on the amount you take. Because it’s a revolving line of credit, you can then draw more cash as you pay it down.

A business line of credit can be an incredible tool for your business, with value during both growth and difficult periods.

Equipment Financing

If you need to purchase, upgrade or replace equipment, then don’t waste time investigating small business loans for female minorities when you could instead opt for equipment financing.

This financing option has come a long way. Now, it can be available in just a few hours, compared to the previous weeks-long waiting period. Thanks to incredible tax benefits, you can write the entire cost off in year one.

Rather than buying the equipment outright, or renting it, equipment financing enables you to own new equipment and pay for it over a set term.

Empowerment Loan

This small business loan for female minorities is available only through National’s exclusive marketplace. The Empowerment Loan can give you the cash you need to take your business to the next level. 

With an approval rate over 90% and Business Financing Advisors ready to talk you through your options, you can get started right away.

Small Business Loans for Female Minorities: Learn Your Options Today

Why wait if you can get started now?

At National, we take pride in making the process as fast, simple and easy for you as possible. Our Business Financing Advisors work quickly and efficiently to talk you through the options available, and helping you get funding before your opportunity is up.

Get started by applying now!

National Business Capital & Services is the #1 FinTech marketplace offering small business loans and services. Harnessing the power of smart technology and even smarter people, we’ve streamlined the approval process to secure over $1 billion in financing for small business owners to date.

Our expert Business Financing Advisors work within our 75+ Lender Marketplace in real time to give you easy access to the best low-interest SBA loans, short and long-term loans and business lines of credit, as well as a full suite of revenue-driving business services.

We strengthen local communities one small business loan at a time. For every deal we fund, we donate 10 meals to Feeding America!

About the Author, Matt Carrigan

Matt Carrigan is the Content Writer at National Business Capital & Services. He loves spending every day creating content to educate business owners across every industry about business growth strategies, and how they can access the funding they need!


Dislcaimer: The information and insights in this article are provided for informational purposes only, and do not constitute financial, legal, tax, business or personal advise from National Business Capital & Services and the author. Do no rely on this information as advice and please consult with your financial advisor, accountant and/or attorney before making any decisions. If you rely solely in this information it is at your own risk. The information is true and accurate to the best of our knowledge, but there maybe errors, omissions, or mistakes.