Here are 9 small-business loans for minorities
Lender | NerdWallet Rating▼ | Max loan amount▼ | Min. credit score▼ | Next steps |
---|---|---|---|---|
SBA 7(a) loan with Fundera by NerdWallet | Best for SBA loans for minorities | $5,000,000 | 650 | with Fundera by NerdWallet |
OnDeck - Online term loan with Fundera by NerdWallet | 5.0/5 Best for Fast business loans for minorities | $250,000 | 625 | with Fundera by NerdWallet |
Fundbox - Line of credit | 5.0/5 Best for Small-business startup loans for minorities | $150,000 | 600 | Read Review |
Fora Financial - Online term loan with Fundera by NerdWallet | 4.5/5 Best for Small-business loans for minorities with bad credit | $1,500,000 | 500 | with Fundera by NerdWallet |
Funding Circle - Online term loan with Fundera by NerdWallet | 5.0/5 Best for Established minority-owned businesses | $500,000 | 660 | with Fundera by NerdWallet |
Wells Fargo - Line of credit | 5.0/5 Best for Bank business loans for minorities | $50,000 | 680 | Read Review |
Bank of America Cash Secured Line of credit | Best for First-time business loans for minorities | $0 | 670 | Read Review |
SBA Microloan with Fundera by NerdWallet | Best for Microloans for minority-owned businesses | $50,000 | 620 | with Fundera by NerdWallet |
Accion - Business Loans | 4.0/5 Best for Small-business loans for minority women | $250,000 | 570 | Read Review |
Here are 9 small-business loans for minorities
Best for SBA loans for minorities
Best for Fast business loans for minorities
Best for Small-business startup loans for minorities
Best for Small-business loans for minorities with bad credit
Best for Established minority-owned businesses
Best for Bank business loans for minorities
Best for First-time business loans for minorities
Best for Microloans for minority-owned businesses
Best for Small-business loans for minority women
Our pick for
SBA loans for minorities
SBA 7(a) loans offer competitive rates and terms and can be used for a variety of funding needs. In fiscal year 2022, minority business owners received over $8.3 billion in 7(a) loans.
SBA 7(a) loan
Max loan
$5,000,000
Min. Credit score
650
Apr range
11.50-15.00%
Our pick for
Fast business loans for minorities
OnDeck offers quick short-term loans that can fund as quickly as the same day. These loans are good for specific, one-time purchases.
OnDeck - Online term loan
Max loan
$250,000
Min. Credit score
625
Apr range
35.40-99.90%
Our pick for
Small-business startup loans for minorities
A business line of credit may be available from Fundbox if you have at least six months in business.
Fundbox - Line of credit
Max loan
$150,000
Min. Credit score
600
Apr range
10.10-79.80%
Our pick for
Small-business loans for minorities with bad credit
If you have a credit score of 500 or higher, you may be able to qualify for a short-term loan from Fora Financial.
Fora Financial - Online term loan
Max loan
$1,500,000
Min. Credit score
500
Our pick for
Established minority-owned businesses
Established businesses with strong credit may qualify for an online small-business loan with terms up to seven years. Funding can be available within two business days.
Funding Circle - Online term loan
Max loan
$500,000
Min. Credit score
660
Apr range
15.22-45.00%
Our pick for
Bank business loans for minorities
Wells Fargo’s unsecured line of credit is designed for companies with less than two years in business and may be easier to qualify for than other bank loans.
Wells Fargo - Line of credit
Max loan
$50,000
Min. Credit score
680
Apr range
13.00-15.00%
Our pick for
First-time business loans for minorities
If you’re just starting out, Bank of America’s cash secured line of credit allows you to pay for daily expenses while establishing a positive account history and building business credit.
Bank of America Cash Secured Line of credit
Max loan
$0
Min. Credit score
670
Our pick for
Microloans for minority-owned businesses
SBA microloans offer smaller loan amounts and more flexible qualification requirements compared to other SBA loan programs. In fiscal year 2022, 76% of SBA microloans went to underserved communities, including Hispanic- and Black-owned businesses.
SBA Microloan
Max loan
$50,000
Min. Credit score
620
Apr range
8.00-13.00%
Our pick for
Small-business loans for minority women
Accion is a nonprofit lender that primarily issues loans to business owners in traditionally underserved communities, including women and people of color.
Accion - Business Loans
Max loan
$250,000
Min. Credit score
570
Apr range
5.99-18.99%
What is a minority-owned business?
Where to get a minority business loan
SBA lenders
Online lenders
Nonprofit microlenders
Community development financial institutions
Banks and credit unions
How to get a minority business loan
1. Determine your funding needs
2. Evaluate your credentials
3. Get certified as a minority-owned business
4. Research and compare lenders
5. Gather your documentation and apply
Other resources for minority-owned businesses
SBA 8(a) business development program
Small-business grants
Minority Business Development Agency
Free community resources
T.H.R.I.V.E. Emerging Leaders Reimagined
SCORE
Methodology
Wondering if you qualify?
It’s possible to get a business loan even if you have bad credit. Bad-credit business loans are available from alternative sources, like online or nonprofit lenders.