Best Lenders for Minority-Owned Businesses: SBA 7(a) loans, Fora Financial, and More
Optimizing Business Loans for Minority Owners
It’s important to secure the best financial solutions for minority business owners. This guide provides insights into various loan options that cater to diverse business needs, ranging from established businesses to startups or businesses with bad credit.
SBA 7(a) Loans: A Top Choice for Established Businesses
The U.S. Small Business Administration (SBA) offers 7(a) loans which are especially beneficial for minority business owners. The SBA guarantees business loans through private lenders, incentivizing them to lend more and at lower rates. In fiscal year 2025, the SBA’s 7(a) program loaned over $5 billion to minority-owned businesses. Read more about SBA 7(a) loans.
Fora Financial: Catering to Startups and Bad Credit
Fora Financial’s minimum credit score requirement of 570 makes it an excellent choice for minority business owners aiming to overcome personal credit score challenges. Fora also allows business owners to borrow more capital once at least 60% of their loan is repaid. Learn more about Fora Financial.
SBA Microloans: Ideal for Loan Amounts of $50,000 or Less
SBA microloans are primarily offered through nonprofit, community lenders, and offer more flexible requirements than other SBA loans. They are a great choice for small businesses that need lower loan amounts and offer benefits through several government contract programs such as the 8(a) program.
Giggle Finance: Best for Self-Employed Individuals
Giggle Finance’s same-day funding can be a lifeline for minority freelancers, contractors or self-employed individuals. The company requires $18,000 in annual revenue, 3 months in business, and has no minimum credit score requirements.
Huntington Bank: A Top Choice for Minority Veterans
Huntington Bank is a top SBA lender and has funded over 3,000 SBA 7(a) loans totaling over $780 million in FY 2025. It offers a Lift Local Business Program that supports minority business owners with capital access, free business education, and personalized business planning support.
Wells Fargo: Excellent For Bank Business Loans
Wells Fargo’s Small Business Advantage Line of Credit offers low rates to minority business owners who qualify based on creditworthiness. Transactions on this credit line also qualify for Wells Fargo’s Business Rewards Program.
Accion: A Prime Option for Minority Women
Accion, a nonprofit community development financial institution, is dedicated to addressing financial inequity in underserved communities. With personalized loan offers and options, Accion can be an excellent choice for new business owners or those unfamiliar with the loan application process.
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