loans for Latina entrepreneurs

How to find small business loans for Latina entrepreneurs

 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 

loans for Latina entrepreneurs


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.

loans for Latina entrepreneurs

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.

You might be interested: Microfunding makes access to capital a reality for minority businesses

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.


crowdfunding money access to capital

The truth about crowdfunding to access capital for small biz

Many small business owners “in the fringe” are looking at crowdfunding as a way to access capital for their small businesses but not everything is as simple as making your plea online.

Posted by Dustin McManus on November 19, 2014 on the Small Business Majority Blog.

crowdfunding, money, access to capital

Q: How do small business owners feel about access to capital?

A: Access to capital has been a persistent problem for entrepreneurs, particularly since the recession. While some parts of the business community have found it easier to secure capital, there are significant gaps in critical areas, such as minority and rural communities, as well as for groups of entrepreneurs like women and veterans. Our opinion polling found that an overwhelming 90% of small business owners nationwide agree that access to credit for a small business is a problem, with 61% agreeing it’s harder to get a loan now than it was before the 2008 recession.

Q: How does crowdfunding relate to access to capital?

A: Crowdfunding is a method of funding by raising monetary contributions from a large number of people, typically online. Small businesses have seen the rapid growth of alternative sources of capital like crowdfunding, which leaves entrepreneurs at risk due to the lack of fair and clear regulations on this new venture. Policymakers must address the risk that comes with alternative sources of capital that balances very real opportunities without stifling this same innovation that has the potential to create more options and points of access to capital for small businesses.

You might be interested: Women business startups apply for seed grant program

Q: How can lawmakers ensure fair regulation of crowdfunding to protect small businesses?

A: The JOBS Act of 2012 required the SEC to issue guidance on crowdfunding. Lawmakers should issue these final rules as quickly as possible, with no further delay, and strike the appropriate balance between oversight and opportunity.

Q: What else can be done to help small businesses access capital more easily?

A: One solution is to change outdated regulations that limit credit unions from meeting small business needs. Currently, there are federal regulations in place that bar credit unions from lending more than 12.25% of their assets to businesses, resulting in businesses belonging to these credit unions having $13 billion less in capital available to them. Bipartisan legislation in Congress would change this and allow credit unions to lend up to 27.5% of their assets, increasing options for small businesses and creating thousands of new jobs with no additional risk for taxpayers.

Q: What about efforts for entrepreneurs that are historically underserved in accessing capital like minorities and women?

A: Continuing to support and expand efforts by the SBA, USDA and other agencies to close gaps through loan guarantee programs will help serve minority, women, veteran and rural entrepreneurs in their attempts to access capital. With innovative new ways of streamlining and simplifying loan-making for small businesses and opening new avenues of capital for them being used, the existing needs of minority entrepreneurs will can be met in order for them to continue serving their function as job creators. Particularly for women, who account for only 16% of conventional small business loans, legislation such as the Women’s Small Business Ownership Act would address this gender gap in lending by expanding or improving SBA programs to reach more women seeking business loans.


immigrant entrepreneur

Microfunding makes access to capital a reality for minority businesses

What is microfunding? A few years ago, I remember being shocked at the idea of people getting a $25 loan to start a business in an underdeveloped country. Twenty five dollars doesn’t seem a lot but microfinance became an instrumental tool that helped many start ups and businesses, energizing massive economies in Western countries.


International microlending followed two roads, one of investment, and the other as a humanitarian cause. Lenders around the world would loan small amounts through international organizations, which would distribute the money among small business owners and start-ups, sometimes expecting compensation and others just to provide someone with an opportunity.

Microlending proved to be a successful chance for all, with excellent repayment rates, and an injection of hope in poor economies where credit is not an option for people without assets. Kiva, for instance, works in 53 countries and has a lending capital of over $150 million. Kiva collects small amounts starting at $25 that become part of an investors’ pool for a selected borrower’s project. With an average of 35,000 lenders a week, Kiva reports a return rate of 98.93%.

Never saw it coming but now microfinance is booming in the United States. High unemployment rate and tightened bank requirements have created amazing opportunities, matching microlenders with people looking to start a small business.

Small business owners as job creators

Small business owners amount for the largest job creation in the United States –they generated 65 percent of net new jobs over the past 17 years. Here are some of the non-profit organizations out there that can be researched if looking for a loan not based on collateral, credit scores or past performance but your passion and dedication to your business:

KIVA They are “a non-profit organization with a mission to connect people through lending to alleviate poverty. Leveraging the internet and a worldwide network of microfinance institutions, Kiva lets individuals lend as little as $25 to help create opportunity around the world.” They envision “a world where all people – even in the most remote areas of the globe – hold the power to create opportunity for themselves and others.”

ACCION USA As a leader in U.S. microfinance, “ACCION USA is committed to bringing affordable small business loans to microentrepreneurs. ACCION USA has provided over $119 million in over 19,000 microloans since inception in 1991, helping to grow small businesses and strengthen the communities they serve.” (Website in English and Spanish)

ACCION International: With offices in Massachusetts and New York City –as well as other international offices- , Accion International is a “private, nonprofit organization with the mission of giving people the financial tools they need to work their way out of poverty. By providing ‘micro’ loans, business training and other financial services to poor men and women who start their own businesses, ACCION helps people work their way up the economic ladder, with dignity and pride.” (Website in English and Spanish)

BOC/Network The Business Outreach Center (BOC) Network is a “micro-enterprise/small business development organization with over a decade-long record of delivering customized business services to under-served entrepreneurs in New York City and, more recently, in Newark, New Jersey, as well as capacity-building services to organizations establishing and operating community and micro-enterprise development programs.”

Grameen Foundation United States: Partnering with a microfinance institution in the United States, Project Enterprise, their mission is to “support and develop entrepreneurs and small businesses in under-resourced communities in New York City. By providing access to business loans, business development services, and networking opportunities, Project Enterprise helps entrepreneurs increase their standard of living, create jobs for their communities, and build financial assets.”latina microfunding

REAP Based in Nebraska, the Rural Enterprise Assistance Project (REAP) is a “program of the Center for Rural Affairs focusing on small business development. REAP consists of four elements including: networking, business management training, credit (micro-loans) and technical assistance.”

Opportunity Fund is a not-for-profit social enterprise “helping thousands of California families build financial stability.  Our strategy combines microloans for small businesses, microsavings accounts, and community real estate financing. Since making our first loan in 1995, our team has deployed over $200 million into our communities.” (Website in English and Spanish)

You can also check the Small Business Administration Microloan Program for a microlending opportunity in your area. Lenders in this program might require some collateral and personal guarantee of the business owner.