Small Business Loans & Funding for Minority Business Owners
According to a 2016 American Community Survey (a report of the U.S. Census Bureau), released in January 2018, white Americans are still the racial majority in the United States at 61.3% of the total population. This current ethnic breakout may not come as a surprise to many of us, as we consider the changing demographics of the country as a whole.
When looking at the genealogical splits that make up the citizenship in the United States, Hispanic and Latino Americans amount to an estimated 17.8% of the total U.S. population, making them the largest ethnic minority. African Americans are the largest racial minority at an estimated 12.7% of the population, with Asian Americans in third at 5.4%.
The allure of The American Dream draws more and more people to the country from a wide range of national and ethnic backgrounds. We all want to grow as people, both personally and professionally, and ambition is the same regardless of whether we are Asian, White, African American, or Latino.
Minority Business Ownership in America
With a country as diverse as the United States of America, minority business owners are becoming more and more common regardless of where you are in the country. According to 2012 data (the last year available) from the Minority Business Development Agency, a division of the U.S. Department of Commerce, 29% of businesses across the nation are owned by minorities. It’s encouraging to see the growth in small business ownership in the Asian, Latino, and Black communities. Starting and maintaining any business is difficult but the rewards can be oh-so-sweet.
One of the ways that minority business owners can get ahead is by taking advantage of different tax incentives which have been put in place by the U.S. government. There are programs designed by the government which enable minority business owners to have their business certified by the National Minority Supplier Development Council. The NMSDC is able to marketminority-ownedd businesses to government agencies, private contractors, and other private and publicly held companies looking to procure goods and services.
To qualify for the NMSDC’s program, a minority business owner must be, ‘a U.S. citizen with at least 25 percent Asian-Indian, Asian-Pacific, Black, Hispanic, or Native American heritage.’ In order to support this claim, documentation is, of course, required. Also, at least 51% of the business or the company’s stock must be owned by people who are also of either Black, Latino, Asian, or any other ethnic minority combination, as well as having management and operations personnel in positions of control.
There is a small certification fee, which can be found here, along with more information on minority business ownership.
Of course, growing your business as a minority owner of Hispanic, African American, or Asian lineage, isn’t without it’s struggles, challenges, and confounding moments. Even when things are outstanding, there are obstacles to achieving the growth, scale, and impact you have your eyes on. It’s during times like these when you need a partner you can trust.
Commercial Business Funding for Minority Business Owners
When you’re looking to grow as minority owner, the path to securing small business funding or scoring a bank loan in can often become a real struggle. The time lost, along with feelings of defeat are things don’t have the luxury of dealing with. Unfortunately, for many minority business owners, that is the reality of working with traditional banks.
In 2017, only 25.1% of businesses who called for funding in 2017 were approved for a traditional bank loan. Essentially, these leaves three-quarters of business owners across the country without access to the funding they were searching for. This can slow your progress significantly and we hate seeing this happen to small business owners.
And to make things even more irritating for minority business owners of African American, Latino, or Asian descent, the wait for approval can extend six-months or more!
When we took a look at the whole picture, we didn’t like the way banks were treating minority business owners who were seeking a loan – so we did something about it.
With Fast Capital 360’s funding products, most applicants only have to wait one hour to be approved for funding. A traditional loan would never be able to expedite funding decisions the way we can.
After your application has been accepted, our funding alternatives to SBA loans, commercial business loans, or small business lines of credit can arrive in your bank account by the end of the next business day.
We’ve been rated #1 on CrowdReviews.com for funding alternatives to small business loans, thanks to our incredible customers and the outstanding testimonials they’ve shared. Our reputation has been built on fair, transparent repayment agreements; all of these factors have enabled us to become one of the leaders in small business lending in the country.
If you’re looking for funding alternatives to traditional bank loans for a retail business or your thriving restaurant business, our company has been preparing funds for minority business owners of Hispanic, African American, and Asian lineage for almost a decade. We look forward to helping your minority owned business for year to come so you can achieve your dreams.
To learn more about our small business funding options for minority business owners or what taking funds from Fast Capital 360 for can mean for your business funding options, give us a call at 1-800-735-6107.