9 Loans Your Minority-Owned Small Business Or Startup Can Get, Even With Bad Credit

Explore the top minority business loans available to find the best fit for your small business or startup. Plus, discover options for building your credit.

Jason has been writing about small business software platforms, services, and financing since 2015. Jason’s expertise has been featured in Yahoo Finance, Time/NextAdvisor, Home Business Magazine, CreditCards.com, GoBankingRates, TheLadders.com, and other publications. He has a bachelor’s degree in Political Science from San Diego State University and currently lives in Philadelphia, Pennsylvania.

Business financing for minorities can be hard to come by, especially if you have bad credit. Even so, your minority-owned business can find the right loan or funding to help support your business goals. In this article, we’ll help you find the right lender for minority-owned small businesses and startups while bearing in mind the difficulties involved in dealing with racial lending biases and disparities.

While not every loan service listed below directly targets minority-owned businesses with bad credit, they all work well with those who have less-than-stellar credit.

Learn More About Our Top Picks

Read more below to learn why we chose these options.

Top 9 Minority Small Business Loans For Bad Credit

Obtaining minority small business startup loans is difficult for a variety of reasons. The following list covers lenders and loan types that offer some combination of accessibility, competitive rates, and transparent funding outside the traditional bank lending system.

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1. SBA Microloans

SBA Microloans

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Get Started With SBA Microloans

Business Center for New Americans

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Get Started With Business Center for New Americans

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9. Union Bank

Union Bank

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Get Started With Union Bank

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Can You Get A Minority-Owned Small Business Loan With Bad Credit?

As daunting as the challenges facing minority business owners with bad credit can be, there are many sympathetic agencies, organizations, and even lenders out there seeking to help correct lending disparities.

Do your research before taking any loan offer, and be sure to check out our more general resources on how to get a startup loan when you have bad credit.

Furthermore, there are many grant programs designed specifically to fund minority business owners and entrepreneurs. Our article on minority small business grant opportunities explores ten such options.

One such grant program is our own: the Merchant Maverick Opportunity Grants Program. While the grant application window for 2022 has closed, keep an eye on the aforementioned link in January of 2023 for our announcement of the details of our 2023 grant program terms and conditions.

FAQs: Small Business Loans For Minorities With Bad Credit

In Summary: Best Minority Business Loans For Bad Credit

SBA Microloans:
- Business loans up to $50,000
- Competitive interest rates
- Personal credit scores as low as 575
CDFI:
- Friendly towards women & minorities
- Flexible borrower requirements
- Relatively low rates & fees
Lendio:
- Loan marketplace network
- No fee for the service
- Loans matched to your needs
LoanBuilder:
- Minimal borrower requirements
- 2.9%-18.72% fixed fee
- Requires $42,000 business revenue/year
Fundbox:
- Credit line up to $150,000
- Minimum credit score: 600
- Competitive rates
American Express Business Checking:
- Lines of credit up to $250,000
- Approval with fair credit
- $3,000 in monthly revenue required
Accion:
- Loans up to $100K
- Specializes in funding minority-owned businesses
- Credit score of 550+
Business Center for New Americans:
- Helping US immigrants & refugees
- For businesses in the NYC area
- No minimum credit score or minimum time-in-business requirement
Union Bank:
- Offers a loan program for minority-owned businesses
- Loans & lines of credit
- Need to be in operation 2+ years