The Best 5 ways to Get Government Minority Small Business Loan

There are those who are belonging in the minority groups which need assistance in setting up a business, but may not be eligible for commercial loans. Good thing, there are numerous government programs both on state or federal level which extends assistance to these groups in achieving their goals.

Government Minority Small Business Loan

Minority small business loan is a kind of short term loan extended to minorities who intend to put up a business or expand an existing one. The loans are given to those eligible borrowers mostly to those who present strong business plan and good projected profit statement.
What the Loan Can Finance?

In most cases, financial assistance needed by minorities can be best secured from the government. Business loans extended is a special financing for different purposes related to the business. It can be for short term or long term working capital, for purchase of equipment, furniture, supplies and materials. It may also be a loan to finance existing receivable and inventories. It is not allowed to be used to pay off any existing debts of the business or to acquire real estates.

The Best 5 Ways to Get Government Minority Small Business Loan Checklist

Before applying for the small business loan, one must gather all the documentations required. These may include information about your personal background which can be written on the application form itself or on separate document. This includes basic information such as name, address, educational background and others. They may also ask from you evidence of business experience.

The loan program before extended will require applicants to submit business plan to be attached on the application. The plan must include the projected financial statement which must specify the cash flow, profit, loss and balance sheets. It is worthy to note that a sound business plan will raise the probability of getting approved. Thus, one must be able to make a thorough research about the business before applying for the loan.

They institution will also require that you submit personal credit report as an important part of the approval process. You must also submit a business credit report. Blemishes and accuracies on the report may lower your chance of getting approved. Thus, it is must to take care of one’s credit or get the report from reputable credit rating agencies.

Some programs may require the submission of income tax returns for the last 3 years and you must prepare it beforehand.

Collateral may be required for business that are high risks. Strong financial statements and business plan may help in avoiding to put up collateral. You also need to prepare legal documents such as registration and business licenses.

In addition to this, you must also be prepared to answer some questions. They will ask the reason why you apply for the loan and where are you going to use the proceeds. They may also inquire what those assets that the business will need are, and your supplier. You may be required to give information about the members of your management team.

Author Bio:
Joel Cordle is marketing lead at mybusinessloans.com.au. My business loans is specialized professional lending company, provide business loans, small business finance. We offer different types of business loans and help people who are self-employed or small business owners.