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If you are black, Latino or Asian and starting a business, you may find one of the best ways to start financing your new business is through minority business loan programs, and the best way to find them is through a branch of the Division of Commerce called the Small Business Administration (SBA). The SBA is a long-standing organization with a history that dates back to just after World War II, and helps millions of Americans who would otherwise have difficulties acquiring a loan get the financing they need.

The SBA is a massive guarantor of business loans. With over 219,000 loans and a portfolio worth over $45 billion, it is actually the largest guarantor of business loans in the country. Although it has been through some political attacks in the post-Reagan years, the SBA has received some aid from the TARP bill and is once again a safe place for people to turn.

The SBA has no actual chapters of its own; rather, it is merely a guarantor that offers its loan programs through banks. In other words, you will need to go to a bank and ask about SBA loan programs in order to find out what precisely you need.

The number of loan programs they offer is astonishing. Many are minority-based business loan programs that cater specifically to certain demographics, including various races, women, veterans and the disabled. There are also a number of programs that offer aid specifically to start-ups and green industries. One of the best ways to make some significant capital through the program is through the use of Microloans, which are small, fixed rate loans on amounts that are $35,000 or less. The Microloan program is especially helpful because the loans are very accessible and ideal for business start-ups, and they are also excellent when applied for in conjunction with each other. (This can be done without sacrificing your credit score as well, if they are applied for within fourteen days of each other.)

The SBA remains an excellent way to get the minority business loan programs that you need. Check with your local bank branch today to see if the SBA has the loan that you are looking for!

This Business article was written by Mark Karavan on 1/26/2010