Small Business Loans For Minorities With Good & Bad Credit

Small business startup loans for minorities range from government grants, to crowdfunding contributions and SBA loans with low rates. If you’re a part of a minority and own a small startup business, you could potentially have access to these unique forms of funding that can help you grow your business and manage your company’s expenses.

What Is A Minority Small Business Loan?

If you’re a small business owner and you’re part of a minority, you may be able to access certain alternative forms of funding or better rates. There are several sources of funding for minority business owners, including alternative online lenders, nonprofit organizations, crowdfunding sites specifically geared towards minorities, grants and Small Business Administration (SBA) loans.

How Much Can I Borrow?

Small business loans can be as small as $1,000 or as high as $5 million. The amount of funding that you’ll have access to is primarily dependent on your financial qualifications, the size of your company, your personal credit score and your financial needs.

How To Qualify For A Minority Small Business Loan

Having a credit score above 600, at least two years in business and a high annual revenue will help increase your chances of finding a loan with a low rate and flexible repayment terms. However, even if you own a new business or have a low credit score, there still may be funding out there that doesn’t break the bank. If you’re operating in an underserved market, you may want to consider applying for an SBA Community Advantage loan.

What Do You Need To Apply For A Minority Business Loan?

While certain forms of funding for minority-owned businesses may have specific requirements, there are a few pieces of information that you’ll likely be required to have for any application:

  • Your personal financial information
  • Personal credit report
  • Business’ credit report
  • Business plan
  • Income tax returns
  • Personal bank statements
  • Business bank statements
  • Documentation of collateral (if required by the lender)
  • Personal contact information

Best Minority Small Business Loan Options

For Good Credit


OnDeck’s small business loans range between $5,000 and $500,000. Their rates start at 9.1% with a maximum of 99.8% for term loans, and range between 11% and 63.2% for their lines of credit. For highly qualified borrowers, OnDeck offers some of the lowest rates in the online business lending industry.

Loan Amounts$5,000 to $500,000
APR RangeAs low as 9.99%
Repayment TermsTerm loans up to 3 years
Time to FundingAs fast as 1 day
Click “Check Rates” to apply to OnDeck

» MORE: OnDeck Business Loan Review


Fundbox offers invoice financing and lines of credit between $1,000 and $100,000. With rates as low as 10.1% for both products, Fundbox’s small business funding options are some of the most competitive out there.

Loan Amounts$1,000 to $100,000
APR Range10.1% to 79.8%
Repayment Terms3 to 6 months
Time to FundingA few minutes to several days
Click “Check Rates” to apply to FundBox

» MORE: FundBox Business Loan Review

Seek Business Capital

Although Seek offers a wide variety of funding options, this lender can also be extremely expensive. While many online business loan applications are free of cost or have low fees, the application fee with this lender is $495. Additionally, borrowers can expect to pay an origination fee of at least 9.99% of the total approved amount, and a termination fee of $995.

For Bad Credit


QuarterSpot offers business loans starting at $5,000, with a maximum amount of $250,000. Their rates range between 20% and 48%. To qualify for a QuarterSpot loan, you should have a credit score above 550.

Loan Amounts$5,000 to $250,000
APR Range30.00% to 70.00%
Repayment TermsUp to 18 months
Time to FundingAs fast as 1 day
Click “Check Rates” to apply to QuarterSpot

» MORE: QuarterSpot Business Loan Review


Kabbage offers loans with amounts ranging between $2,000 and $250,000, and rates ranging starting at 24% with a maximum of 99%. Due to the wide range of annual percentage rates that a Kabbage loan can come with, this lender is more willing to work with borrowers with bad credit than a traditional lender.

Loan Amounts$2,000 to $250,000
APR Range24% to 99%
Repayment Terms6 to 12 months
Time to FundingA few minutes to several days
Click “Check Rates” to apply to Kabbage

» MORE: Kabbage Business Loan Review

For Established Businesses


LendingClub offers business loans and lines of credit between $5,000 and $300,000, with annual percentage rates ranging between 7.77% and 35.11%. To qualify, you should have a personal credit score above 620 and a minimum annual revenue of $75,000.

Loan Amount:$5,000 – $300,000
APR Range:9.77% – 35.71%
Time To Fund:As quick as 2 days
Loan Term:One to five years
How To Qualify:620+ Personal Credit Score
$50,000 Annual Revenue
Click “Check Rates” to apply to LendingClub

» MORE: LendingClub Business Loan Review


Fundation offers loans ranging between $20,000 and $500,000, with rates starting at just 8% for the most highly qualified borrowers. With APRs like this, this lender’s products come with some of the lowest rates in the industry.

For Business Expansion

Funding Circle

Funding Circle is a peer-to-peer loan-matching service that connects borrowers to loans as high as $500,000. Their rates range between 10.91% and 35.5%.

Loan Amount:$25,000 – $500,000
APR Range:4.99% – 26.99%%
Time To Fund:10 days on average
Loan Terms:One to five years
How To Qualify:660+ Personal Credit Score
No Minimum Annual Revenue
Great Option For:Established Businesses, Not Sole Proprietors
Click “Check Rates” to apply to Funding Circle

» MORE: Funding Circle Business Loan Review


If you’re looking to expand your business and purchase new property or equipment, Lendio might be the right option for you. With loans of up to $5 million and rates hitting a maximum of 24%, this service offers a relatively competitive product.

Alternatives Lending Options For Minority Small Businesses

SBA 7(a) and 8(a) Development Program

This program is best for business owners who are already part of the 8(a) program, and have financial needs that do not exceed $150,000.

SBA Community Advantage Loans

This lending program is ideal for businesses that are operating in underserved markets or communities, and provides access to loans of up to $250,000.

SBA Microloan Program

The SBA Microloan Program offers small loans of less than $50,000 to business owners who are operating relatively new organizations.

» MORE: Learn More About SBA Loans


As a minority small business owner, you might be eligible for certain federal or state grants to get your business started or fund your project. This is the most ideal form of business funding because recipients are not required to repay the funds.

Personal Loans

If you only need a small amount and are willing to risk your own personal credit score and assets, you can also consider taking out a personal loan to fund your business expenses.

» MORE: Compare Personal Loan Options


Being a minority business owner can help you gain access to a number of different funding options and programs that other business owners may not be able to qualify for. Before diving into applications with online lenders, make sure to evaluate what low interest or cost-free funding options you may have.

Compare Business Loans

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