Small business loan options for native american owned businesses

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SMALL BUSINESS LOAN OPTIONS FOR NATIVE
AMERICAN-OWNED BUSINESSES
NATIVE AMERICAN BUSINESS LOANS
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The Analysis
There are government grants available for Native
American-owned businesses, but these are highly
competitive. A small business loan is a more
practical funding option that can help them
start a new business on non-tribal lands.
More and more minority businesses are starting in
the United States. The number has increased to
almost 11 million in minority-owned
businesses with employees over 6.3 million and
1.8 trillion in annual revenue.
About 1.6 percent of the U.S population reflects
the Native Americans
They collectively own about 300,000 businesses
and its keep growing
Even this increased number has not resulted in
increased revenues and number of employees.
With quick access to affordable financing
options, Native American-owned businesses can
scale their businesses with more revenues and
employment opportunities.
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DEBT-FREE GRANTS OPPORTUNITIES
Debt-free financing options are important to
businesss growth. With less debt, businesses can
have more resources to focus on growth rather
repay a small business loan. Here is a list of
grant opportunities for Native American-owned
businesses
There are also crowdfunding sites like
kickstarter, Causes, RocketHub or Indiegogo where
you can grow money for your small business. You
can use a compelling story as an opportunity to
share your business inspirations, goals and
cultural root to the public.
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SMALL BUSINESS LOANS FOR NATIVE AMERICAN-OWNED
BUSINESSES
If youre not able to qualify for a grant, a
small business loan is your next best option.
Before you apply for a small business loan,
understanding the metrics like interest rates,
loan usage, and the repayment schedule is
important since all these metrics can affect your
small business.
Here is a list of the best Native American small
business loans for 2019
1 - COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION
(CDFI) LOANS
DFIs are private nonprofits financial
institutions that provide funding, investment,
training, and mentorship to small businesses in
economically deprived communities. The main
purpose of these CDFIs is to provide these
distressed communities with an alternative to
traditional lending.
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SMALL BUSINESS LOANS FOR NATIVE AMERICAN-OWNED
BUSINESSES
If youre not able to qualify for a grant, a
small business loan is your next best option.
Before you apply for a small business loan,
understanding the metrics like interest rates,
loan usage, and the repayment schedule is
important since all these metrics can affect your
small business.
Here is a list of the best Native American small
business loans for 2019
2 U.S. Department of the Interior Indian Loan
Guarantee Program
The U.S. Department of the Interior (DOI) provide
funding to Native American-owned businesses via
an Indian Loan Guarantee Program. These loan
programs provide long-term loans at lower
interest rate to federally recognized American
Indian and Alaska Native tribes and individuals
enrolled in such tribes. In order to qualify,
the business owner must have 51 share in
ownership, with 20 down payment and the
product/service must assist the economy of the
tribal area or the reservation.
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SMALL BUSINESS LOANS FOR NATIVE AMERICAN-OWNED
BUSINESSES
If youre not able to qualify for a grant, a
small business loan is your next best option.
Before you apply for a small business loan,
understanding the metrics like interest rates,
loan usage, and the repayment schedule is
important since all these metrics can affect your
small business.
Here is a list of the best Native American small
business loans for 2019
3 U.S. Department of Agriculture Business
Industry Loan Guarantee
The U.S. Department of Agriculture (USDA)
provides funding to Native American-owned
businesses via Business Industry Loan Guarantee
Program. These small business loans are available
in any rural community with easy eligibility
criteria. In order to qualify, the business
should be located in a rural area with less than
50,000 inhabitants and some collateral to provide
a cushion for the lenders interest in the
loan. The USDA guarantees loans with cash up to
25 million, and terms up to 30 years depending
on the loan usage. The interest rates are
typically lower than market to assist rural
businesses to get started.
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SMALL BUSINESS LOANS FOR NATIVE AMERICAN-OWNED
BUSINESSES
If youre not able to qualify for a grant, a
small business loan is your next best option.
Before you apply for a small business loan,
understanding the metrics like interest rates,
loan usage, and the repayment schedule is
important since all these metrics can affect your
small business.
Here is a list of the best Native American small
business loans for 2019
4 U.S. Department of Energy Loan Guarantee
The U.S. Department of Energy (DOE) also provide
funding to Native American entrepreneurs via a
Tribal Energy Loan Guarantee Program that
primarily focuses on tribal energy development
projects. Every energy-related projects like
fossil energy production and mining, renewable
energy, transmission infrastructure, and energy
storage are eligible to apply for funding.
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SMALL BUSINESS LOANS FOR NATIVE AMERICAN-OWNED
BUSINESSES
If youre not able to qualify for a grant, a
small business loan is your next best option.
Before you apply for a small business loan,
understanding the metrics like interest rates,
loan usage, and the repayment schedule is
important since all these metrics can affect your
small business.
Here is a list of the best Native American small
business loans for 2019
4 U.S. Department of Energy Loan Guarantee
The U.S. Department of Energy (DOE) also provide
funding to Native American entrepreneurs via a
Tribal Energy Loan Guarantee Program that
primarily focuses on tribal energy development
projects. Every energy-related projects like
fossil energy production and mining, renewable
energy, transmission infrastructure, and energy
storage are eligible to apply for funding.
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SMALL BUSINESS LOAN TYPES
Here are the most common types of small business
loans for Native American-owned business owners!
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SMALL BUISNESS ADMINISTRATION (SBA) LOANS
The U.S. Small Business Administration (SBA)
provides the most reputable government loans
guarantee program.
SBA loans are available to type of small
business, and among many, one of the agencys
goals is to help businesses in economically
deprived communities.
SBA loans offer lower interest rates and long
repayment terms of 10-20 years, since they are
guarantee by the government. The SBA 7(a) loan is
the most popular loan program that offers cash up
to 5 million for a variety of purposes, such as
working capital, equipment purchases, business
acquisition, construction, and refinancing.
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MICROLOANS
Microloan is another funding option for
minority-owned businesses, which provide small
amount of seed capital under 50,000 to get
started with.
The eligibility criteria is simple, you just need
to have a decent credit score of 600 as well as
a proof of your ability to repay the monthly
payments. Even startup businesses can qualify for
microloans and theres no down payment condition.
Microloans have a high interest rate range of 10
to 16 based on the borrowers creditworthiness
as compared to SBA loan rates or DOI loan rates.
Moreover, you can use these loans for almost any
purpose including expansion, inventory, supplies,
hiring, and marketing.
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SHORT-TERM FINANCING
If you need quick funding with low credit score,
a short-term loan can be a savior.
In order to qualify, you need to be in business
for several months and have revenue of 4,000
each month, even with low credit score.
The repayment terms is between three to 18 months
with daily or weekly repayment schedule.
Short-term loans are perfect for short-term needs
like purchase inventory or supplies, payroll, and
other short-term needs.
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BUSINESS CREDIT CARDS
Business credit cards are another quick and
expedient funding solution like short-term loans.
You can also apply for a business credit card
even if you dont have a business setup and
running.
The best thing about business credit cards is
that they have higher limits and better rewards
points as compared to consumer credit cards. With
an excellent credit score, you can have a
business credit limit of 50,000 or more.
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TIPS TO STRENGTHEN SMALL BUSINESS LOAN APPLICATION
Here are few tips to help you strengthen your
small business loan application
Create a strategic business plan if you want to
apply for SBA loans, DOI loans, and bank loans.
Consider it an essential element of your loan
application even if its not required by a lender.
A business plan manifest how realistic you are
about revenue, profit, expense projections, and
exactly how much you need to borrow.
Keep trying to improve your credit score. The
better your credit score is, the quicker you will
be approved for a loan. It also helps in getting
you more credit range along with lower interest
rates.
If you have upward trajectory in revenue, lenders
are more willing to lend you money. Even if
youre a startup, your focus should be on
expanding your products/services and on getting
paying customers.
The more sustainable your business success is
with positive financials in the long term, the
more likely you will be qualified for a small
business loan.
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NATIVE AMERICAN BUSINESSES CAN THRIVE TODAY!
Running a business is challenging, especially for
Native Americans business owners, but if you work
intelligently and search for resources at the
right place, you will find a great deal for sure.
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HOW MERCHANT ADVISORS CAN HELP?
Merchant Advisors is an alternative lender
helping small businesses with the aim to assist
small businesses owners with the financial tools
to thrive and improve small business community.
Whether youre just starting in the neighborhood,
or on tribal land, Merchant Advisors can help
small business owners conquer the challenges
facing Native American-owned businesses.
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THANK YOU
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