How Minority-Owned Businesses Can Catch a Break

Minority- and women-owned businesses may not be using all the resources—such as professional associations and municipalities—that can help them

By Amy S. Choi

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Expanding your business is always tough, and never more so than in the midst of a long-running economic slump. But women and minority entrepreneurs, who together own more than 10 million U.S. businesses, have access to more resources than they might realize. These range from business planning advice to certifications aimed at helping entrepreneurs win government and big-company contracts. Help is offered by myriad groups, from professional associations to local municipalities.

A variety of small business owners told SmallBiz that they were initially wary of describing themselves as minority business owners, preferring to let their capabilities speak for themselves. But others have found that there is no time like the bruising present to begin pursuing all avenues to success.

The services and organizations that follow aren't necessarily new, but they're among the most effective in helping minority and women entrepreneurs boost their businesses. Here is our guide, plus links to organizations that can help.

FINANCING

Commercial banks with active small business portfolios or Small Business Administration lending programs also often have programs for minorities and women. Wells Fargo, which last year ranked as the largest national bank lender in the SBA's flagship 7(a) loan program, has set a goal of lending $5 billion to Asian American business owners by the end of 2013 as part of its Asian Business Services Div. KeyBank also runs a minority and women's business enterprise program to help boost those outfits. Members of the Global Banking Alliance for Women, such as Bank of America and UPS Capital, have committed to building their lending programs for women entrepreneurs. wellsfargo.com; key.com; GBAforwomen.org; bankofamerica.com; capital.ups.com

Specialized angel funds such as Golden Seeds, for women, as well as local angel groups, such as the Minority Angel Investor Network in Philadelphia, may also be resources. Even if a fund isn't targeted specifically toward minorities or women, a little research into a fund's portfolio companies and the principals' interests can give you an idea of how receptive they might be. goldenseeds.com; minorityangelinvestornetwork.com

Springboard Enterprises also helps connect women business owners with investors, offering training and assistance in developing pitches and business plans. springboardenterprises.org

The SBA's Women's Business Centers can help you find local lenders who run programs for women business owners. SBA.gov/aboutsba/sbaprograms/online-wbc/index.html

Your city or state economic development agency may offer grants or loans to women- and minority-owned businesses. Although such grants may be geared toward low-income entrepreneurs, they're worth an inquiry. Many also offer grant programs or seed funding for minority- and women-owned businesses generally.

Certified minority business owners can apply for financing through the National Minority Supplier Development Council's Business Consortium Fund. This fund provides money to companies that are doing business with other members of the NMSDC. nmsdc.org

PEER ADVISORY

The U.S. Hispanic Chamber of Commerce, the U.S. Pan Asian American Chamber of Commerce, the National Black Chamber of Commerce, and the U.S. Women's Chamber of Commerce offer peer counseling. Connecting with fellow members at the local level can help you navigate particular issues.

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