So, it’s official then, you’ve finally decided to start your Hispanic-owned business, I mean you wouldn’t really be here if you weren’t, right? To you, I’ll say just three things: that’s great, congratulations, and welcome to the club!
Did you know that the entrepreneurial spirit in our people continues to play a significant role in contributing to the robust economy of the great red, white, and blue?
As of 2023, Hispanic-owned businesses made up a massive 5 million businesses across the United States! To top that, we generated over 800 billion dollars in sales!
With the wide range of internet providers, platforms like Shopify and Amazon, and the funding options mentioned in this article, setting up your business should be a walk in the park. In case you’re currently looking for the right internet provider, let me save you the hassle. Just reach out to customer service from Optimum en español for a reliable and high-speed internet plan.
Now coming back to the funding options, let’s take a look at the top 4 funding options you have to help launch your Hispanic-owned business faster than the Flash after his morning coffee. One of the most accessible routes for many entrepreneurs is applying for a small business loan, which can provide the capital needed to cover startup costs and scale operations.
1. Accion Opportunity Fund
The Accion Opportunity Fund is the best choice for funding available to you as a Hispanic-American business owner. Accion operates in its role as a nonprofit financial institution in three states, yet supports businesses like yours across 41 states in the country.
They are well-reputed for providing Hispanics and other domestic minorities with business funding, as well as coaching and mentoring. You can receive a loan ranging between $5,000 to $100,000, with an interest rate as low as 5.99%.
However, there’s a catch. Your business must be operational for a minimum of one year and have made a minimum of $50,000 in sales. You can visit their website, available in both English and Spanish, to apply for a loan.
2. Grant.gov
As a United States government organization offering the largest number of federal government grants, Grant.gov is a solid second choice for Hispanic-owned businesses.
They provide grants to a diverse range of businesses, regardless of ethnic ownership or industry. However, the criteria for each might be a little different so it would be better if you checked out your eligibility performance.
If you’re in the science or technology industry, you’re in luck! The organization’s initiatives are known to skew towards businesses in these industries, improving their chances for a grant. You can visit their website to apply for a loan.
However, do note that you’ll need a unique 9-digit number for your business from Dun and Bradstreet. This number registers your business as an entity that is permitted to conduct business with the U.S. government.
3. U.S. Small Business Administration (S.B.A.)
The Small Business Administration is a federal agency providing funds to Hispanics and other minorities in the country through the SBA Lender Match. While not traditionally a direct loan provider, the agency runs programs where approved loan borrowers can help small business owners.
You can obtain funding through their Microloans or Community Advantage Loans programs. The Microloans typically range in amounts between $13k to $50k and are ideal for businesses like yours due to their low interest rates, generally 8% or 13%. However, the eligibility criteria vary depending on the credit requirements of the lender.
Your second option is the Community Advantage Loan. These provide amounts reaching up to $350,000, with interest rates ranging between 4.5 to 6.5%. The eligibility criteria for a community advantage loan require your business to meet the following:
- Be a for-profit business operating in U.S.-owned territories.
- Meet the SBA’s requirements for qualifying as a small business.
- Prove a need for financing.
- Have equity invested in the business.
- Have financial resources, including personal assets, invested in the business.
4. Camino Financial
This one hit close to home! Founded by Sean and Kelly Salas, a brother and sister who are the children of a fellow Hispanic business owner, Camino Financial is a Los Angeles-based financial firm that exclusively helps Hispanic business owners benefit from low-cost loans.
Noticing their mother faced difficulties funding her Mexican restaurant, the brother and sister took it upon themselves to free other Hispanic entrepreneurs from similar issues, and launched Camino Financial to support this mission.
To receive a loan, you’ll need to pass a prequalifying application that doesn’t focus on your credit score. Additionally, you must also have a business that is up and running for a minimum of nine months with $30,000 in annual sales.
You can receive loans ranging between $10,000 to $50,000. To top that, they allow you a 2-year to 5-year repayment plan, however, their interest rates are rather high at 32%.
Launching Your Business – Securing the Future of Generations Ahead
As a Hispanic business owner, I know the amount of courage and hard work launching a business takes. However, it is also highly dependent on researching and seizing the opportunities around you.
With this article, I hope to bring you one step closer to your dream of being a successful business owner. With the wide range of funding options available, it’s time to turn that dream into a thriving reality.
