Minority Business Loans Do Not Exist - Stop Your Search Now!

Are you seriously considering minority business loans as a source of business start up funding for your new venture? Stop your search! Minority small business loans simply do not exist.  I realize that you may find this vital piece of information quite shocking -- but it is nonetheless true.  

As a Start Up Business Consultant, I often have the unfortunate job of telling potential clients that minority business loans are a fairytale and not a fact. Oddly enough, I get the exact same reaction when I tell these same clients that small business start up grants are also nearly impossible to garner. So what is the good news?  The good news is that I'm about to save you a lot of potentially wasted time and effort by giving you the facts. 

 

Get the Facts!

 

Let's check out these valuable tidbits before we proceed by examining some options -- and the ultimate solution.

 

Fact #1: 

There are no specific business start up loans for members of a minority group.

 

Fact #2: 

The only forms of government guaranteed financing available to minorities are SBA loan products.

 

Fact #3: 

Minority small business start up grants do not exist.

 

What Government Programs Exist to Help Minorities?

 

So what help is available to members of a minority group? The Minority Business Development Agency (MBDA) operates under the auspices of the U.S. Department of Commerce. This government agency was established to give minority entrepreneurs the tools necessary to successfully compete in national and global markets. This agency however, does not offer minority business loans, nor do they hand out minority business start up grants.

 

Why is there So Much Misinformation about Minority Business Loans?

 

In 1977 the US Congress passed a law known as the Community Reinvestment Act. This law prohibited lenders from engaging in discriminatory loan practices in low income communities. This law was specifically intended to encourage banks to approve a larger percentage of loans to minorities. The passage of this law does not constitute a lending program specifically for members of a minority group. It was intended however to require that financial institutions give fair and unbiased consideration to minority loan applicants.

 

What Are My Start Up Financing Options?

 

Here are the most common methods of obtaining small business start up funding: 


SBA Loans
Commercial Loans
Home Equity Loans
Peer-to-Peer Lending Groups (such as Prosper and Zopa)
Credit Card Financing
Loans from Family and Friends
Bootstrapping 
Consider Getting Some Help from a Start Up Efficiency Expert

 

A Start Up Efficiency Expert can point you in the right direction and advise you on how to reduce and/or eliminate many of your start up and operating costs. Certainly, you should also continue to conduct thorough research.  However, do not trust every source of information you find floating out in cyberspace. You'll not only waste a lot of time - but perhaps face staggering disappointment. 

 

The Solution: 

Find Free Sources of Business Start Up Funding

 

The Start Up Business Survival Guide is an excellent resource for anyone desiring to start a business with very little money. You can make your dreams of owning your own business without bank loans a reality - even if you have poor credit or don't own a home.  

Kimberly Kelly teaches new entrepreneurs the secrets for finding free sources of business start up funding through her ebooks, seminars and coaching services. She is the author of the popular selling ebook: The Start-Up Business Survival Guide: 101 FREE Products and Services to Help Finance Your Dream of Successful Business Ownership. Visit her website at http://www.StartUpBusinessSurvivalGuide.com