Where to Get Small-Business Loans for Minorities

How it benefits minority business owners: The U.S. Small Business Administration says it is committed to supporting minority-owned businesses, as well as underserved small-business owners. The SBA supports efforts to equalize lending to small businesses by guaranteeing business loans through private lenders — therefore incentivizing them to lend more and at lower rates. So far in fiscal year 2025, the SBA’s 7(a) program has loaned more than $5 billion to minority-owned businesses^[0]

SBA 7(a) loans can be used for a wide array of business purposes, and offer low rates and favorable terms to those who qualify. If you are a fairly established business and can afford to wait for financing, SBA 7(a) loans are a good option for you.

Be mindful of: One thing to watch out for with SBA loans is that they typically take a long time — longer than online lenders and some traditional loans — to process and be funded. Make sure you discuss the timeline of funding with your lender, and account for it during your planning.

How it benefits minority business owners: Fora Financial’s minimum credit score requirement of 570 makes it a good option for minority business owners who have found that their personal credit score stands in their way of accessing capital. Fora is also unique in allowing business owners to borrow more capital once at least 60% of their loan is repaid.

Be mindful of: Fora Financial’s use of factor rates rather than APRs makes its loans more expensive and difficult to compare with other options. Make sure you understand what the loan is really costing you by converting the factor rate into an APR.

How it benefits minority business owners: SBA microloans are typically offered through nonprofit, community lenders, and have more flexible requirements than other SBA loans. Many larger lenders don’t find it lucrative to lend in small amounts; however, if your business is forced to take more money than it needs, it can end up doing more harm than good. SBA microloans fill that gap.

In addition to funding, the SBA has several programs that support minority-owned businesses, including government contract programs like the 8(a) program, the Mentor-Protégé Program and T.H.R.I.V.E. Emerging Leaders Reimagined, which provides education and resources to businesses in underserved cities. It also partners with agencies like the Minority Business Development Agency (MBDA) and hosts initiatives at several Historically Black Colleges and Universities (HBCUs) around the country.

Be mindful of: Like other SBA products, SBA microloans can take a while to fund, so you’ll want to make sure you’ve built that into your timeline.

How it benefits minority business owners: Giggle Finance’s same-day funding can be a lifeline for minority freelancers, contractors or self-employed individuals. It requires $18000 in annual revenue, 3 months in business and has no minimum credit score requirements.

Be mindful of: Giggle’s loans are merchant cash advances (MCAs) which tend to be one of the most expensive forms of financing. Even though it doesn’t offer large funding amounts, the cost of financing and daily required payments could trap you in a bad cycle of debt.

How it benefits minority business owners: Huntington Bank is consistently one of the top SBA lenders in the country. So far in FY 2025, Huntington has funded over 3,000 SBA 7(a) loans totaling over $780 million^[0]

Be mindful of: Huntington’s Lift Local Business Program has loan maximums that are capped at $150000, something to be mindful of if you need more money.

How it benefits minority business owners: Wells Fargo’s Small Business Advantage Line of Credit has no annual fee and can offer low rates to minority business owners who qualify based on creditworthiness. Spending on the line also qualifies for Wells Fargo’s Business Rewards Program, which can be used for card payments or to purchase merchandise.

Be mindful of: The maximum amount for this line of credit is only $50000. It’s best to use this loan to help cover small cash flow gaps.

How it benefits minority business owners: Accion is a nonprofit community development financial institution that is dedicated to addressing financial inequity in underserved communities. It provides personalized offers and options that work best for your unique needs. Minority business owners who are new to business ownership or the loan application process may benefit from working with a specialist on a personal level.

After funding, Accion also provides a resource library plus free mentoring and coaching to its borrowers.

Be mindful of: Similar to SBA loans, small-business loans from Accion can take longer than other lenders due to its personalized process. If you don’t feel like you need a hands-on touch, you may consider other lenders that can provide a faster process.