Starting a business in the United States and achieving a better standard of living for their families is the dream of countless families across the country. Unfortunately, conditions are not the same for everyone; systemic inequality is a factor that avoids that minorities have the same access to education and justice, fundamental issues to achieve their purpose.
Something similar happens when starting a business. Poor access to financing is the main barrier faced by minorities. Banking institutions often deny this right, while other lenders set many requirements or interest rates are too high. For this reason, accessing small business grants for minorities is an alternative that allows thousands of people to achieve the American Dream.
U.S. minority-owned businesses
Figures from the Small Business Administration (SBA) affirm that there are 30.7 million small businesses in the United States, and according to U.S. Census Bureau data, 18.3% are minority-owned, and 19.9% are women-owned. The remaining minority numbers break down as follows:
● 337,934 Veteran-owned businesses
● 331,625 Hispanic-owned businesses
● 577,835 Asian-owned businesses
● 124,551 Blacks or African Americans-owned businesses
● 24,433 American Indian and Alaska Native-owned businesses
● 6,653 Native Hawaiian and Other Pacific Islander-owned businesses
How do minorities access business financing?
Here are some resources that minority members can access to get financing for their businesses. Don't let your dream go down the toilet. Fight with all your being to achieve your financial and personal goals.
According to information obtained from caminofinancial.com, there are different private and public resources to receive small business grants for minorities. The most recommended are the following:
- MBDA Business Grants
- First Nations Development Institute Grant
- NABDI Grant
- NBMBAA Scale-Up Pitch Challenge
- Amber Grant
- AWGC Grants
Another alternative is to turn to the SBA for small business grants for minorities or business loans. To access this option, it is necessary to register with the federal agency, have a social security number, and have a commercial bank account, among other requirements.
In addition to offering grants for minorities, the SBA website has online courses for entrepreneurs that can provide great information on important topics such as management, sales, networking, and operations. Remember that the most important tool you can count on at any stage of your business is knowledge.
Other financing alternatives
In case entrepreneurs who are part of a minority group cannot access any of the above tools, an excellent option, fast and without so many requirements, is to get commercial loans through financial institutions. By obtaining small business loans, business owners will have the possibility to decide how to manage their resources and for which allocations, without the intervention of any institution.
Other financial products available to obtain capital from financial institutions include commercial credit cards, merchant cash advances, and inventory financing.
It is important that before choosing any of these tools, you set a goal for the financing and be realistic about your ability to pay. This way, the debt will not drown you, and you will be focused on your business.
Undoubtedly, minorities are one of the great economic engines that propel the United States. Despite the complicated conditions they face, they have values such as responsibility, strength, and discipline, which allow them to deal with all the obstacles that the entrepreneurial path presents.
Setting up a business, getting small business grants for minorities or capital from any other institution will allow you to achieve the standard of living you have always wanted and give your family and many more the ability to grow in the land of possibilities.
The pursuit of the American Dream can be complicated, but without a doubt, it will be worth every one of the sacrifices you make. Work hard, take advantage of all the resources and tools available and be sure that you will achieve your ideal entrepreneurship.