With over 8 million minority owned firms in the US, it is imperative that business owners know their potential and what resources they can use to grow their business. The infographic below reviews current definitions of what a minority business is according to the National Minority Supplier Development Council. We will also go over status of lending for minority-owned businesses and the best lending resources for this business type.
Transcript can be found below.
Minority-Owned Small Business Lending in the US
Definition of Minority-Owned Small Businesses
A small business that is at least 51% owned, operated and controlled by a minority group member. A minority group member, considered by the National Minority Supplier Development Council (NMSDE), is an individual who is at least 25% Asian, African American, Hispanic or Native American.
Types of Businesses owned by Minority Group Members
- 13% Healthcare & Social Assistance
- 12% Administrative Support, Waste Management & Remediation
- 10% Professional, Scientific & Tech
- 9% Construction
- 8% Retail
- 7% Transportation and Warehousing
- 5% Real Estate & Leasing
- 37% Other (includes; repair and maintenance, personal and laundry services, religious and civic organizations.
What is the Lending Status of Minority-Owned Businesses?
- 17% of Minority-Owned Firms with gross receipts over $500k received a loan
- 41% of Minority-Owned Firms with gross receipts under $500k received a loan
- 23% of Non-Minority Owned Firms with gross receipts over $500k received a loan
- 25% of Non-Minority Owned Firms with gross receipts under $500k received a loan
Top Financing Options available to Minority-Owned small business owners
- SBA 7(a) and 8(a) Development Program
- SBA Community Advantage Loans
- SBA Microloan Program
- The National African American Small Business Loan Fund
- Business Center for New Americans
- Alternative, fixed-cost financing from Reliant Funding