Financing and Funding Options Available for Hispanic Business Owners

According to the U.S. Census Bureau Hispanics represent the fastest-growing segment of the country’s economic sector. According to the U.S. Hispanic Chamber of Commerce (USHCC), Latino-owned businesses grew 31.6% between 2012 and 2013, more than twice as fast as all American businesses.

This includes small business loans to Hispanics. These entrepreneurs also have access to other economic opportunities. Hispanic entrepreneurs have been able to grow their businesses by taking advantage of government resources and other resources that are specifically designed to support Hispanics. Hispanic business owners still have barriers to success.

We’ll be discussing some of the top grants and loans available to Hispanic-owned businesses. You will feel more supported as you embark on your journey towards entrepreneurship.

Hispanics Small Business loans

Here are some great loan options for Hispanic-owned business:

U.S. Small Business Administration teams up with local non-profit lenders to offer microloans from the SBA of up to $50,000 to small business owners. Many of the non-profit intermediaries reach out to Hispanic or other minority business owners. These loans, which are government-backed, come with low interest rates and 6-year terms.

SBA Community Loans

This program is another SBA program and can provide up to $250,000 of capital. It was created specifically to meet the needs business owners from underserved communities. Hispanic business owners are eligible for SBA community assistance loans because they have historically been underfunded. They must show strong business plans and credit. Eligibility for loans is not affected by collateral and asset size.

Accion

Accion supports Hispanic business owners, as well as other minority-owned enterprises. Hispanic business owners can apply for loans with their fully automated platform. They can get loans up to $50,000. Accion offers financial education and capital for low-income entrepreneurs.

Opportunity Fund

Opportunity Fund a similar nonprofit organization to Accion. They offer loans to the community and microloans in partnership with SBA. The application process is easy, and they can provide loans in as little as five days. Opportunity Fund has a Spanish version on their website, which is helpful for people who struggle to understand the language. Opportunity Fund is active in 13 states, including California, Florida, New York, and New York, with high Hispanic populations.

Camino Financial

Camino financial was established by Camino Financial to assist Hispanic entrepreneurs after their mother failed to secure financing for her Mexican restaurant chain. Camino Financial helps small business owners with credit scores of at most 550. These requirements are met, and you can get funding within two days.

Kiva

Kiva uses a unique business model to provide $10,000 zero interest loans to business owners all over the globe. All applicants are required to market their business to the 1.6 million lenders. These lenders may then offer loans to your company for as low as $25, or as high at $10,000. You’ll need to repay them within three years.

Grants For Hispanic-Owned Companies

A small business loan must be repaid with interest. Although you don’t have the obligation to repay a small business loan, grants are more attractive than loans.

Here are some grants available to Hispanic small business owners:

Grants.gov

This website contains the largest collection of federal government grants. The website lists information for most federal agencies that offer grants. This website is especially useful for companies in the science or technology fields.

Small Business Innovation Research and Technology Transfer

The STTR programs and STIR programs are grants from five federal government agencies. These grants focus on science and tech and are open to all applicants. You could be eligible if you qualify.

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USDA Rural Business Grants

Hispanic-owned businesses that are in rural areas might be eligible to receive grants from U.S. Department of Agriculture. These grants can be used for the expansion or start-up of a small company. These grants are available to small businesses with fewer than 50 employees or annual gross revenues below $1 million. For details on how to apply, you should contact the local USDA office.

National Association of the Self-Employed

Through the National Association for the Self-Employed, small business owners can get a grant up to $4,000. To apply for the grant, you will need to be a member of NASE and provide proof that it would help you reach your business goals.

Amber Grant For Women

Hispanic women often have additional barriers due to gender and ethnicity. Each year, 12 female business owners are eligible for the Amber Grant which provides $10,000 in funding. The annual $25,000 grand prize is up for grabs by the 12 recipients.

More Resources for Hispanic Business Owners

These resources are available to Hispanic-owned businesses that need capital.

Minority Business Development Agency

Contact your local MBDA center if loan programs are available or you need other resources to penetrate new markets. Hispanic entrepreneurs can get assistance from business specialists to help them compete for contracts, obtain loans, and identify strategic partners.

U.S. Hispanic Chamber of Commerce

For assistance in obtaining a business loan, contact the U.S. Hispanic Chamber of Commerce. Many of these chapters work with lenders and bank to provide loan programs for Hispanic entrepreneurs.

Score

SCORE is a government sponsored resource that is partially funded by SBA. This website is available in Spanish. It’s designed to help Hispanic entrepreneurs grow their business and understand the regulations that all business owners must comply with. Business workshops are available. Mentors can also be found to assist you in creating a business plan and navigating funding difficulties.

Latino Coalition

The Latino Coalition offers helpful resources for Latino entrepreneurs. They lobby every level of government for policies that will allow Latino-owned businesses to thrive. They organize networking events which can lead you to funding if you have the right connections.

The Bottom Line

Finding financing can be one of the most difficult parts of any business. Hispanic entrepreneurs who require capital to expand or launch their business have many options.

Generally, small business loans are more accessible when you are first starting your venture. These grants are often highly competitive. These options may be great for Hispanics who are looking for small business loans to help them expand their business. If none of these options work, Progressive Business Capital might be an alternative. Feel free to contact us online, or by calling (800) 508-4532.

You will have a more successful business, no matter what method you use. If you can get enough financing, your business will be better equipped to succeed in the long term.

 

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