When it comes to financing for established businesses, the SBA 7(a) loans stand out for their favorable conditions, which are particularly beneficial for minority business owners. The U.S. Small Business Administration is steadfast in its dedication to assisting minority-owned and underserved businesses by guaranteeing loans through private lenders. This approach encourages lenders to offer more affordable rates and boost their loan offerings. In the 2025 fiscal year alone, the SBA’s 7(a) program has already extended over $5 billion in loans to minority-owned businesses.
The versatility of SBA 7(a) loans can’t be understated–they cover a range of business needs and boast attractive terms for those who qualify. If you have an established business and can wait for the funds, these loans could be a great fit. However, be aware that SBA loans often require more time for processing and funding compared to online and traditional lending options. Be sure to have a conversation with your lender about the timeline to plan accordingly.
For startups or those navigating credit challenges, Fora Financial offers a viable option. They set a minimum credit score requirement at 570, which opens doors for many minority business owners struggling with credit hindrances. A unique perk is the ability to access additional capital after repaying 60% of a loan. However, it’s important to note that Fora’s loans use factor rates, which can make them pricier and harder to compare with other options. Converting those rates to APR will give you a clearer idea of the true cost.
When seeking smaller loans up to $50,000, SBA microloans are often the go-to choice because they come through nonprofit community lenders and have more lenient requirements. They’re ideal for businesses that risk taking on more capital than necessary, potentially causing financial strain. Beyond funding, the SBA supports minority-owned enterprises with programs like the 8(a) program, the Mentor-Protégé Program, and T.H.R.I.V.E. Emerging Leaders Reimagined, all fostering growth in underserved areas. They also collaborate with the Minority Business Development Agency and various Historically Black Colleges and Universities.
Giggle Finance, meanwhile, caters to self-employed individuals with its same-day funding, requiring a modest $18,000 in annual revenue and three months in business, with no minimum credit score. Yet, their merchant cash advances can be costlier and might lead to a debt spiral due to daily payments.
For minority veterans, Huntington Bank has consistently ranked as a top SBA lender, dispensing more than 3,000 SBA 7(a) loans valuing over $780 million for FY 2025. Their Lift Local Business Program extends vital resources like capital access, free business education, and personalized support, a boon for minority business owners at any stage. However, loan maximums are limited to $150,000, so budget accordingly.
Wells Fargo provides an appealing option with its Small Business Advantage Line of Credit, which offers no annual fee and low rates for qualified candidates. Additionally, their Business Rewards Program could further benefit users. Just be mindful that the line maxes out at $50,000, ideal for handling small cash flow issues.
For minority women, Accion is a nonprofit that prioritizes bridging economic gaps in underserved communities. Offering customized financial solutions, Accion is suited for minority business owners inexperienced in loan applications. Post-funding, Accion also provides invaluable resources and mentorship. However, their hands-on approach means processing can take longer than other lenders. If you prefer a speedier and less involved process, you might want to explore other financial institutions.
