How to find loans for Latina entrepreneurs who need access to affordable financing when the time comes, just like any other small businesses? There are several government resources and non-profit organizations providing lending specifically to Hispanic business owners.
By Guest Contributor Dave Rathmanner
Most small businesses face a need for financing at some point or another throughout the business cycle, whether it is for working capital, expansion, or equipment purchasing. When funding is necessary to keep operations moving forward, a small business loan is the goldstandard in business lending.
That is because small business loans offer a set amount of financing, predictable repayment over time, and relatively low interestrates for well-qualified businesses. But first, business owners must know what it takes to be eligible for a small business loan.
Small Business Loan Eligibility Requirements
Each small business loan lender has different requirements for companies in need of a loan, but generally speaking, businesses must meet the following qualification criteria:
- Strong credit history and score, either on the businessor personal side of the line
- Good repayment history on other debts, including loans, lines of credit, credit cards, and alternativefinancing arrangements
- Strong cash flow from sales
- Adequate business assets which may be usedascollateral
- At least one year in business
- Certain amount of annual revenue for the past year or two
- Strong financial statements of the company, including balance sheet, income and loss statements, and cash flow statements
In some cases, small business lendersmay also requireaudited financial records, a business plan, or a detailed description of what the loan proceeds will be used to cover. Business owners can improve their chances of getting approval for a business loan by having documentation organized and accurate.
Small business loans for Latina entrepreneurs specifically
LatinX business owners make up nearly 2.3 millionof the 27 million businesses in the United States, and that number continues to grow each year. Just like other small businesses, LatinX business owners need access to affordable financing when the time comes. There are several government resources and non-profit organizations providing lending specifically to Hispanic business owners, with the most prominent including:
- Minority Business Development Agency: local centers staff business specialists who are trained to assist Hispanic business owners in securing loans through a network of qualified lenders.
- S Hispanic Chamber of Commerce (USHCC): through local CoC organizations, Hispanic business owners can be connected to lenders willing and able to help fund operations through small business loans.
- ACCION: as a microfinance organization, ACCION providers Hispanic small business owners with loans up to $50,000, with a simplifiedapplication and approval process online.
Where to Find Small Business Loans in General
Small business loans are available from a variety of lenders, including traditional banks and credit unions, financing companies, and alternative lenders online. Also, the Small Business Administration, while not a direct provider of funding, guarantees loans from qualified lenders. Using this tool online, small business owners can find an SBA-partner lender, along with qualification requirements and application information.
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Visiting a local small business development center through the SBA may also connect business owners with lenders able to help with financing needs. A list of local SBDCs can be found on the SBA website, along with other resources for finding the right small business loan.