How much do you need?
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
Here are 9 minority business loans
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 |
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 | 570 | with Fundera by NerdWallet |
Funding Circle - Online term loan with Fundera by NerdWallet | 4.5/5 Best for Established minority-owned businesses | $500,000 | 660 | with Fundera by NerdWallet |
Wells Fargo Small Business Advantage® Line of Credit | 5.0/5 Best for Bank business loans for minorities | $50,000 | 680 | |
Bank of America Cash Secured Line of credit | 5.0/5 Best for First-time business loans for minorities | Undisclosed | 670 | |
SBA Microloan with Fundera by NerdWallet | Best for Microloans for minority-owned businesses | $50,000 | 620 | with Fundera by NerdWallet |
Accion Opportunity Fund - Small Business Working Capital Loan | 5.0/5 Best for Small-business loans for minority women | $250,000 | 570 | |
Huntington National Bank - Lift Local Business Program | Best for Startup loans for minorities | $150,000 | Undisclosed | |
Here are 9 minority business loans
Best for SBA loans for minorities
Best for Fast business 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
Max Amount
$50,000
Min. Credit Score
680
Best for First-time business loans for minorities
Max Amount
Undisclosed
Min. Credit Score
670
Best for Microloans for minority-owned businesses
Best for Small-business loans for minority women
Max Amount
$250,000
Min. Credit Score
570
Best for Startup loans for minorities
Max Amount
$150,000
Min. Credit Score
Undisclosed
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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 2024, minority business owners have received over $3 billion in 7(a) loans, to date.
SBA 7(a) loan
with Fundera by NerdWallet
Max loan
$5,000,000
Min. Credit score
650
Apr range
11.50-15.00%
with Fundera by NerdWallet
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
with Fundera by NerdWallet
Max loan
$250,000
Min. Credit score
625
Apr range
27.20-99.90%
with Fundera by NerdWallet
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
with Fundera by NerdWallet
Max loan
$1,500,000
Min. Credit score
570
with Fundera by NerdWallet
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
with Fundera by NerdWallet
Max loan
$500,000
Min. Credit score
660
Apr range
15.22-45.00%
with Fundera by NerdWallet
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 Small Business Advantage® 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
Undisclosed
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 the 2024 fiscal year, so far, 49% of SBA microloans have gone to underserved communities, including Black- and Asian-owned businesses.
SBA Microloan
with Fundera by NerdWallet
Max loan
$50,000
Min. Credit score
620
Apr range
8.00-13.00%
with Fundera by NerdWallet
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 Opportunity Fund - Small Business Working Capital Loan
Max loan
$250,000
Min. Credit score
570
Apr range
8.49-24.99%
Our pick for
Startup loans for minorities
Huntington Bank’s Lift Local Business Program offers loans between $1,000 and $150,000 to minority-, women- and veteran-owned businesses at any stage of growth.
Huntington National Bank - Lift Local Business Program
Max loan
$150,000
Min. Credit score
Undisclosed
Details on our picks for the best minority business loans
SBA 7(a) loans
- $5 million loan maximum.
- Flexible uses.
OnDeck
- Same-day funding.
- Check eligibility without affecting your credit.
- Streamlined, direct application online.
Fora Financial
- Up to $1.5 million in loan amounts.
- Can borrow more money after 60% of your loan is repaid.
- Flexible uses.
- Low minimum credit score requirements.
Funding Circle
- Long terms available.
- Pre-qualify without affecting your credit score.
Wells Fargo
- No annual fee.
- Low rates.
- Earns rewards.
Bank of America
- No origination fee.
- Minimal length of time in business and revenue requirements.
- Can transition to an unsecured line of credit after two years.
SBA Microloans
- Loan amounts below $50,000.
- Flexible loan uses.
- Competitive interest rates.
Accion
- Coaching and mentoring available to clients.
- Personalized experience.
- Low rates.
- Chance to review multiple offers.
Huntington Bank
- No origination fees.
- Long repayment terms.
- Low credit score requirements.
- No length of time in business requirement.
Who qualifies as a minority-owned business?
How to get certified as a minority-owned business
How to get a minority business loan
- Determine your funding needs. Start by deciding how much capital you need and how you’re going to use it. You’ll also want to consider the loan type that might be best for your needs — a term loan vs. line of credit, for example — as well as how much debt you can afford.
- Evaluate your credentials. Consider your personal credit score, time in business and annual revenue to get a sense of where you stand before applying. Also think about your cash flow, sales projections and available collateral.
- Get certified as a minority-owned business. Although this certification isn’t required to apply for a business loan, it may be helpful for opportunities now and in the future. You can get certified as a minority-owned business through your state, or through the NMSDC.
- Research and compare lenders. As you begin your search for financing, you should compare several small-business lenders to find the right fit for your needs. You’ll want to consider factors such as loan offerings, interest rates, repayment terms, qualifications, funding speed and lender reputation.
- Gather your documentation and apply. Although business loan requirements and application processes will vary by lender, you’ll generally need to provide bank statements, tax returns and other business financial documents. The more accurately you can complete the lender’s application, the faster you will be able to receive a decision. Some online lenders can fund applications within the same day, whereas others will take a few business days. More traditional lenders, like bank and SBA lenders, can take several days to several weeks.
Where to get a minority business loan
SBA lenders
Online and alternative lenders
Banks and credit unions
Community development financial institutions
Minority depository institutions
Microlenders
Additional funding sources for minority-owned businesses
- Grants for minority entrepreneurs. The government and private organizations offer business grants and awards to minority-owned businesses. Opportunities often vary drastically from state to state, but here are some minority small-business grants to consider.
- Venture capital. Venture capital firms are third-party investment companies that fund startups and entrepreneurs in exchange for a percentage of ownership in your business. Firms like Oakland-based Kapor Capital and Harlem-based Harlem Capital are dedicated to closing the gap in venture capital that many minority-owned businesses experience.
- Friends and family. If you’re struggling to qualify for traditional funding, borrowing from friends and family is also an option, and may allow you to avoid paying too much in interest. Accepting a business loan from family or friends does have the potential to affect personal relationships, however, so it’s best to make sure you trust the person you ask, and put the terms of your agreement in writing.
- Self-funding. Self-funding, also known as bootstrapping, is another option to fund your business, if you have enough money in savings. You may also consider Rollovers as Business Startups (ROBS) transactions, which allow you to use retirement savings to fund your company. With self-funding you can save money on interest and avoid diluting your ownership; however, you are at risk of losing your own money if your business fails.
Other resources for minority-owned businesses
Minority Business Development Agency
National Minority Supplier Development Council
Business Consortium Fund
SBA 8(a) business development program
SBA HUBZone Program
T.H.R.I.V.E. Emerging Leaders Reimagined
SBA Office of Native American Affairs
Free community resources
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.