Best Minority Business Loans

Find out more about minority business loans for small businesses and learn what the best options are. Includes frequently asked questions.

Updated on November 2nd, 2022

The SMB Guide is reader-supported. When you buy through links on our site, we may earn an affiliate commission. Learn more

Minority business loans are a financing option for minority business owners and entrepreneurs who need a small business loan to start or grow their business. Minority small business loans may give you access to better rates or terms than the average loan.

Read More:

Small Business Grants for Minorities - Learn more about seed money awarded to entrepreneurs from minority groups.

Small Business Startup Loans - Discover how to get a startup loan for your small business.

Bad Credit Business Loans - Discover the best business loans for people with bad credit.

Small Business Grants - Learn more about how to get a small business grant.

Why We Chose Fundbox:

Fundbox provides business loans and lines of credit. They have a fast approval process and will help individuals with low credit scores. Fundbox will focus on your business health rather than on your credit score.

Fundbox integrates with QuickBooks and offers competitive rates. You can manage your loan from your dashboard and transfer the funds to your business checking account. Fundbox will show you your repayment total before you commit and there is no penalty for early repayment.

Things to Consider When Evaluating Minority Business Lenders:

  1. Create a comprehensive business plan so that you can find viable business loans whose requirements suit your needs.
  2. Federal grants can be quite competitive, so look for local options.
  3. Enter small business grant contests and spread the word for the voting portion of the competition.

Best Minority Business Loans:

Our Rank

Loan Type

Minimum Interest Rate





Fast loan approval and assists individuals with low credit scores but requires weekly re-payments.


SBA 7(a) Loan


Offers working capital of up to $5,000,000.00 for small businesses.


Accompany Capital


Provides microloans and small business loans for startups with monthly repayments.


CDFI Small Business Loan, such as Lendistry


Alternative option to bank loans, offers competitive rates. Small value loans may not be enough.




Offers loans for low revenue new businesses but most loan payments must be done weekly.




Fast and easy qualification process but the rates may be too high for new business owners.




Easy online application with monthly repayments but it is not ideal for start-ups or small loan amounts.




Can assist people with low credit scores. There is no online dashboard for managing your loan.



Quote only

Quick and easy online application with competitive rates. Offers unsecured business loans. May not be suitable for startups.


How do I qualify for a minority business loan?

  • The business must be majority-owned by a member of a minority group.
  • The business must be registered as a minority-owned business or disadvantaged business enterprise.

What is a minority loan?

A minority business loan is a loan to a minority-owned business. In lending, minorities are typically classified as African-American, Alaskan Native, American Indian, Asian-American, Hispanic-American or Pacific Islander.

How do I start a minority business?

You will need to be classified as a minority in order to start a minority business. The following groups fall under this category:

  • African-American.
  • Hispanic-American.
  • Asian-American.
  • Alaskan Native.
  • Pacific Islander.
  • American Indians.

A minority business is one that has at least 51 percent ownership by a member of one of these groups and must be registered as a minority-owned business or disadvantaged business enterprise.

Does the Small Business Administration have any small business loans for minorities?

The SBA does not have any loans that are intended exclusively for minorities. However, the SBA 7(a) loan is an excellent minority business loan option because it has flexible payment terms and low-interest rates for new and growing businesses.

Small Business Startup Loans For Minorities

Are there any lenders with small business startup loans for minorities?

Are there any small business loans for minorities with bad credit?

Lenders like Fundbox, Kabbage and OnDeck supply minority business loans in bad credit situations. Applicants with bad credit won't automatically be accepted, but these lenders can accommodate borrowers who are in difficult situations.

Are there any government small business loans for minorities?

The Minority Business Development Agency and both offer grants to minority groups in the small business community. The grants all have very specific criteria that applicants need to meet in order to qualify, but it is worth a try if you can find a grant that is applicable to you.

What is the Black Business Loan Program?

The Black Business Loan Program is a program that was implemented by the state of Florida to help African American business owners secure business loans. The program was created by the State government, but loans from the program can be obtained through certified financial institutions throughout Florida.