Getting a business loan is harder when you’re a minority business owner, and the data shows that year after year. In Fiscal Year 2024, Latino-owned businesses received just 8.3% of total approved SBA 7(a) loan dollars, compared to 39.4% for white-owned firms, according to a 2026 Brookings Institution analysis of SBA data.
The gap is similar across other minority groups. A growing number of SBA programs, nonprofit CDFIs and mission-driven lenders exist specifically to change that. If you’ve been turned away elsewhere or just want a loan designed with your community in mind, here’s where to look.
Community mission: percentage of BIPOC borrowers served and explicit program focus
Eligibility flexibility: credit score, time in business, revenue thresholds
Loan cost: interest rates, fees, APR
Support services: coaching, bilingual resources, credit building
Operational status
We prioritized lenders with publicly verifiable missions to serve minority, immigrant or low-income communities. We also reviewed third-party ratings from the Better Business Bureau (BBB) and Trustpilot, where available, and disclosed any concerns we found.
What is a minority business loan?
A minority business loan is financing designed for companies that are at least 51% owned by members of a historically marginalized community, most often Black, Indigenous or people of color (BIPOC), though some programs also include women, LGBTQI+ owners or veterans.
These loans exist because the gap in access to capital is real and persistent. Minority-owned firms consistently report credit constraints, receive smaller loan amounts and face higher borrowing costs than white-owned businesses, according to the March 2026 Brookings Institution report. The factors lenders traditionally weigh, including credit scores, time in business and annual revenue, tend to favor white-owned businesses, which is exactly what these programs are built to work around.
Who qualifies as a “minority”?
The definition varies by program. The SBA’s definition of “socially disadvantaged individuals” — one of the most common standards used — automatically includes:
Black Americans
Hispanic Americans
Native Americans
Asian Pacific Americans
Subcontinent Asian Americans
Anyone else subjected to racial or ethnic prejudice or cultural bias within American society can also make the case for inclusion. Private programs and CDFIs may use broader or narrower definitions. Always check the eligibility requirements of a specific program before applying.
Where to get a minority business loan
Not every lender suits every borrower. Here’s a breakdown of where to look based on your situation:
SBA programs and CA SBLCs are best for established businesses that need larger amounts and can handle a longer application process. Find lenders at sba.gov.
CDFIs. Community development financial institutions, or CDFIs, are mission-driven nonprofits certified by the US Treasury. They often have lower revenue and credit requirements than banks and offer wraparound support services. Find CDFIs in your area at the CDFI Fund website (cdfifund.gov).
Nonprofit microlenders (like Grameen America and Kiva) are ideal for startups or borrowers with no credit history who need small amounts to get off the ground.
Minority Depository Institutions (MDIs) are federally insured banks at least 51% owned by BIPOC shareholders. Like CDFIs, they often offer lower-cost products with fewer barriers. You can find an MDI near you on the Federal Depository Insurance Corporation (FDIC) website.
State and local government programs frequently offer minority business loans with reduced rates and flexible requirements. Contact your local SBA resource partner or government business development office to find what’s available in your area.
Community banks occasionally have dedicated minority business lending programs. It’s worth calling local community banks in your area directly to ask.
Online lenders. Online lenders offer small business loans using an algorithm to determine your eligibility and loan terms. Many have lower requirements for time in business, revenue and credit score than a bank. Instead, they rely on alternative data, such as shipping records and daily deposits.
We currently don't have that product, but here are others to consider:
How we picked these
What is the Finder Score?
The Finder Score crunches 12+ types of business loans across 35+ lenders. It takes into account the product's interest rate, fees and features, as well as the type of loan eg investor, variable, fixed rate - this gives you a simple score out of 10.
To provide a Score, we compare like-for-like loans. So if you're comparing the best business loans for startups loans, you can see how each business loan stacks up against other business loans with the same borrower type, rate type and repayment type.
Check eligibility first. Review credit score, time in business, annual revenue and ownership requirements. Most programs require your business to be at least 51% minority-owned.
Consider MBE certification. Minority Business Enterprise (MBE) certification from your state or the NMSDC is required for some programs and can open doors to additional contracts and funding.
Gather your documents. Most lenders ask for recent bank statements, tax returns and proof of ownership. SBA lenders require additional forms, including SBA Form 1919 and personal financial statements.
Apply with multiple lenders. Many CDFIs and nonprofit lenders use a soft credit pull for prequalification, so comparing options won’t automatically hurt your score.
Compare the full cost of borrowing. Look at APR — not just the stated interest rate — plus origination fees, closing costs and prepayment penalties.
Make payments on time. Several lenders on this list report repayments to credit bureaus, meaning consistent payments directly build your business credit profile.
Alternatives to a minority business loan
If a loan isn’t the right fit right now, these options are worth exploring:
Minority business grants. Free, non-repayable grants available to minority-owned businesses from nonprofits and federal agencies. The SBA’s resource partners and the Minority Business Development Agency (MBDA) can connect you with current programs.
SBA 8(a) Business Development Program. Sets aside federal contracts and provides business training for socially and economically disadvantaged owners. To qualify, you’ll first need to become certified as 8(a) eligible, which starts with registering on the government’s System Awards Management (SAM) website.
HUBZone certification. The federal government sets aside 3% of contracts for businesses located in HUBZones, which often overlap with minority-concentrated communities. Register at sam.gov.
SBA Mentor-Protégé Program. Connects small business owners with experienced mentors who can help them navigate federal set-aside contracts and grow their business.
Crowdfunding. Platforms like Kiva let your community directly fund your business without taking on interest-bearing debt.
Revenue-based financing. Some CDFIs offer advances repaid as a percentage of future revenue — a lower-risk structure for businesses with inconsistent cash flow.
Getting certified as a Minority Business Enterprise (MBE)
MBE certification is an official government status indicating your business is at least 51% owned, operated and controlled by a member of a presumed group, which the government identifies as:
Black American or any Black racial group originating in Africa
Hispanic with origins in Mexico, Puerto Rico, Cuba, Central or South America or other Spanish or Portuguese cultures
Native American or certified member of a federally or state-recognized Indian Tribe
Asian Pacific with origins in the Pacific Islands, China, Taiwan, Korea, Japan, Thailand, Burma, Cambodia, Vietnam, Malaysia, Indonesia, Singapore or the Philippines
Subcontinent Asian with origins in India, Pakistan, Bangladesh, Bhutan, the Maldives Islands, Nepal or Sri Lanka
The main benefit is access to programs that require certification as a condition of eligibility. It can also unlock networking opportunities through organizations like the National Minority Supplier Development Council (NMSDC). State and local governments often run their own MBE certification programs — requirements and accepted definitions vary, so check with your specific jurisdiction.
Your rights as a borrower
Under the Equal Credit Opportunity Act, it is illegal for a lender to discriminate against you on the basis of race, religion, sex or national origin. Creditors cannot discourage you from applying or offer you different terms than others would receive on the same application.
The Fair Credit Reporting Act also gives you the right to know if your credit history was used to deny your application. If a creditor submitted inaccurate or false information to a credit bureau, you can have it removed or corrected, typically within 30 days.
Note: these protections apply to you as an individual. Business-specific antidiscrimination protections are less settled at the federal level, though the ECOA may still apply to you as the owner. If you believe you’ve been discriminated against, consider these steps:
File a complaint with the CFPB. The Consumer Financial Protection Bureau responds to most complaints within 15 days, and companies take it seriously.
Contact your state attorney general. Your state may have broader consumer protections than federal law.
Consult an attorney. If you have grounds for a discrimination claim, you have the right to sue in federal district court and may be able to pursue a class action if multiple business owners were affected.
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Frequently asked questions
Not always. Kiva, Accion Opportunity Fund and Camino Financial don't require it. Some government programs and federal set-aside contracts do. Getting certified can expand your options significantly.
Yes, in some cases. Kiva has no credit score requirement. Grameen America doesn't use credit scores at all. Accion Opportunity Fund looks at cash flow and tax returns holistically and works with scores as low as 600.
CDFIs are Treasury-certified nonprofits with an explicit mission to serve underbanked communities. They typically have more flexible requirements, access to government funds reserved for minority-owned businesses and offer services like coaching and credit building that traditional banks don't.
Yes. The SBA's resource partners, the MBDA, and various nonprofits offer grants — free money that doesn't need to be repaid. Some COVID-era grant programs also remain available. Contact an SBA resource partner at sba.gov to find what's currently available in your area.
The original pilot program expired on September 30, 2023. It has been replaced by Community Advantage Small Business Lending Companies (CA SBLCs) — mission-driven lenders operating under the standard SBA 7(a) program with a mandate to prioritize underserved markets. The product is effectively the same, but the licensing designation changed.
Anna Serio was a lead editor at Finder, specializing in consumer and business financing. A trusted lending expert and former certified commercial loan officer, Anna's written and edited more than 1,000 articles on Finder to help Americans strengthen their financial literacy. Her expertise and analysis on personal, student, business and car loans has been featured in publications like Business Insider, CNBC and Nasdaq, and has appeared on NBC and KADN. Anna holds an MA in Middle Eastern studies from the American University of Beirut and a BA in Creative Writing from Macaulay Honors College at Hunter College, CUNY.
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