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Daily Tech Finance evaluates multiple lenders using our methodology to determine the top lenders for minority-owned businesses. We list top pros and cons and general details so you can get to know what is available.
Click "get personalized rates" and fill out some general information so we can find the lenders that are the best fit for your circumstances and needs.
Daily Tech Finance matches you with lenders you may qualify for, letting you easily apply and get funds.
When seeking funding for a business, it is important for owners to compare lenders. Specific details such as the lender's loan products, loan amounts and time in business requirements can help minority entrepreneurs make informed decisions.
| LENDER | BEST FOR | LOAN AMOUNT | MIN. TIME IN BUSINESS |
|---|---|---|---|
| Online lender | $5,000 to $250,000 | 12 months | |
| Unsecured line of credit | $10,000 to $150,000 | 24 months | |
| Secured credit building | Starts at $1,000 | 6 months | |
| Low-interest loans | $5,000 to $250,000 | 12 months | |
| Microloans | $1,000 to $15,000 | N/A | |
| Midwest lender | $1,000 to $150,000 | Startups eligible | |
| Special purpose credit program | Up to $500,000 | Not stated | |
| Black-owned bank | Starting at $50,000 | 24 months | |
| Southern region | Up to $250,000 | Not stated | |
| U.S. Bank | Personalized lending experience | Up to $12.375 million | Not stated |
When choosing a small business lender suitable for your business needs, consider key factors like eligibility requirements, loan type and terms. Consider prequalifying, if possible, to see what interest rates, fees and repayment terms you’re eligible for. You'll also want to research their reputation.
iBusiness Funding offers a wide range of financial tools, such as term loans, business lines of credit and SBA loans. However, what makes the company stand apart is its flexibility of repayment terms. iBusiness Funding offers terms ranging from just six months to up to seven years for qualified applicants.
As an online-only lender, OnDeck offers a fast, streamlined application process for borrowers. And with loan amounts up to $250,000, they can meet the needs of most small businesses.
If you are looking to build credit for your small business, Bank of America might be an attractive option. The company’s cash-secured business line of credit is a fantastic way for businesses to build credit. And the fact that they have physical branch locations in most of the country means you can get valuable face-time with a loan officer that can walk you through the process.
Overview: Wells Fargo actively supports underserved communities, aiding 152,000 small businesses through its Open for Business Fund including minority-owned businesses. It also provides resources for minority women business owners and the LGBTQ community. Its unsecured lines of credit cater to businesses of various ages, offering a revolving credit line of up to $150,000 for businesses operating for two years or more and another option for newer businesses, with both lines earning rewards on eligible purchases.
Overview: Accion Opportunity Fund is a nonprofit specifically developed to advance racial, gender and economic justice for all. Its working capital loan ranges from $5,000 to $250,000, with rates starting at 8.49 percent. That’s decidedly on the low end for business loan rates, meaning you can get access to the capital your business needs with less cost over the life of the loan. It also has relaxed credit score requirements, with no strict requirements necessary for a working capital loan, and only requiring a FICO score of just 600 to be considered for loan approval.
Overview: Kiva made a name for itself offering microloans, or small loans that can go a long way for lower-income entrepreneurs. They don’t offer business loans in the traditional sense, but they do provide a platform that could allow you to crowdfund the capital you need. If you’re looking for a loan of $15,000 or less, Kiva could give you a way to get it with 0 percent interest. The catch? You’re crowdfunding it rather than getting it as traditional loan proceeds, which is a much slower process.
Overview: Huntington Bank is one of the top SBA lenders in the country — it has approved over $1.7 million in SBA 7(a) loans in fiscal year 2025 so far. Outside of SBA products, it serves businesses primarily in the Midwest but also has branches located in the South. Its Lift Local Business® program helps provide minority-owned businesses with better access to business loans and lines of credit. The bank advertises that these loans come with low credit score requirements, longer terms and zero origination fees. Borrowers also get access to free entrepreneurial courses valued at $1,500.
Overview: JPMorgan Chase put its money where its mouth is with a $30 billion commitment to racial equality. They offer SBA loans, term loans and lines of credit, but its special purpose credit program specifically targets locations with underserved communities. It started in Dallas, Detroit, Houston and Miami and is now offered in more than 20 cities. To date, the program has serviced more than 6 million loans to small and mid-sized businesses. If you live in one of the country’s bigger underserved communities, this program might make it easier for you to get access to capital.
Overview: As both the first Black-owned digital bank and the largest Black-owned bank in the country, OneUnited Bank knows what it means to operate in and for historically disadvantaged communities. In partnership with Lendistry, business owners can apply for a business loan even if they don’t have a OneUnited Bank account. And with a $35 million allocation in New Markets Tax Credits (NMTCs), OneUnited and Lendistry have funds they can specifically use to provide loans to “Qualified Active Low-Income Community Businesses,” which are businesses that serve low-income communities. To qualify, you’ll need at least two years in business and take out a minimum of $50,000. Loans are available in all 50 states and the lender promises a response within 48 hours.
Overview: The HOPE Business Loan Program facilitates access to up to $250,000 in loans for businesses seeking to start, grow, or expand. This aligns with Hope's mission to support sustainable enterprises that create jobs, benefit local communities, and improve infrastructure in underserved areas. The lender offers real estate loans, equipment loans, unsecured loans, shared secured loans, and vehicle loans.
Overview: The Business Diversity Lending Program from U.S. Bank provides minority-owned businesses with up to $2.5 million, a hefty sum compared to most business loans. Loan options include term loans, lines of credit, owner-occupied commercial real estate and investment loans.
Daily Tech Finance Insight
Research by the public policy think tank Third Way found five reasons why minority business owners struggle to gain access to capital:
Business loans for minorities are loans that are issued by a variety of different lenders — including SBA lenders, nonprofits and banks — that are designed to help members of historically underserved communities access capital for their business.
The definition of a minority-owned business can vary based on the specific lender, but generally, a minority-owned business is any small, for-profit business that is at least 51 percent owned, operated or controlled by a member of a minority group. Different lenders and certification programs may define minority groups differently, but for reference, the the Minority Business Development Agency (MBconsiders members of minority groups as individuals who identify as:
Depending on the lender and their program, business loans for minority-owned businesses may also get extended to other underserved communities, like businesses owned by women, veterans and LGBTQ+ community members.
There are several federal programs to get certified as a minority-owned business:
In addition to these national certification agencies, you may be able to get certified through your state government as well.
Many lenders won't require you to be certified as a minority-owned business to qualify for a minority business loan. That means that qualification requirements generally don't differ from other traditional loans. Lenders will likely look at:
Business loans for minorities can come in a lot of shapes and sizes. You can find low-interest business loans, fast business loans — even business loans for a 500 credit score. Here are a few of the broad categories you may want to explore for financing your company needs.
The U.S. Small Business Administration guarantees SBA loans, which helps to make them more affordable. Small business lenders can work with the SBA to provide traditional SBA 7(a) loans and other SBA loans, like microloans, which can be helpful to business owners in historically disadvantaged communities.
With term loans, the lender gives you a lump sum and you have a set amount of time (the loan term) to pay it back, usually in monthly installments. These are typically long-term options that have lower interest rates than other types of loans.
These loans are generally on the smaller side, less than $50,000. They can be through the SBA or nonprofit lenders, or they can be crowdfunded through platforms like Kiva.
Lines of credit are a lot like a credit card. As you pay back what you borrowed, you can use it again. If you need cash flow on an ongoing basis, this might be right for your business.
Daily Tech Finance Insight
A lender can deny your loan if you ask for more than you can reasonably afford to repay. If you only need small loan amounts, check out our guides on the following loan amounts:
Daily Tech Finance Insight
As you’re exploring business loans for minorities, watch out for:
Minority small business owners may be able to get free industry expert advice, alternative minority small business loan options and educational resources from the following nonprofit or governmental organizations.
The nonprofit business development organization Business Consortium Fund (BCF) develops and funds certified minority-owned businesses, especially those needing funding for supply chain contracts. Low-income earners may qualify for up to $3,000 in loan closing costs.
The federal MBDA supports minority-owned businesses, including helping to secure capital, win contract bids and identify new business growth opportunities.
This program offers certification to small businesses looking to win government bids in underutilized zones called HUBZones. HUBZone-certified businesses can compete for targeted government contracts and receive a 10% preference on price evaluations.
This SBA office is dedicated to providing free technical support and other resources to small business owners who are Alaskan Natives, Native Hawaiians or American Indians.
The SBA Office of Entrepreneurial Development provides customized training and networking resources through the Emergency Leaders program to established small businesses with high potential for growth and success working in underserved cities.
The OSDBU operates under the Department of State and works with industry partners, acquisition corporations and program offices to help disadvantaged small businesses win prime and subtracting contracts.
Daily Tech Finance Insight: Bridge, a platform built by Citi connects people to regional banks, CFDIs and MDIs to get the business capital they need. Today, Bridge has more than 70 lenders in its network, including women-owned and black-owned institutions working to help underserved communities.
Daily Tech Finance Insight
Bridge, a platform built by Citi connects people to regional banks, CFDIs and MDIs to get the business capital they need. Today, Bridge has more than 70 lenders in its network, including women-owned and black-owned institutions working to help underserved communities.
57
years in business
30
lenders reviewed
22
loan features weighed
770
data points collected
To choose the best business loans for minorities, we researched banks with relaxed eligibility requirements and programs that are specifically geared toward helping minority business owners. We then considered features that make loans affordable and accessible to businesses with different characteristics and needs, including interest rates, whether the loans are secured or unsecured, minimum annual revenue and fees. These lenders were also evaluated for notable qualities such as funding speed and nontraditional eligibility criteria.
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