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There are a number of programs that exist to help small and minority businesses build a firm business foundation in the competitive business environment. Thanks to these programs, minority business loans are readily available to a number of people with different needs.

The most well-known source of minority business loans is the government-run Small Business Administration (SBA), which has been in existence since 1953. The SBA has two stated purposes: to help maintain economic stability by supporting the endeavors of small business, and to help rebuild communities that were damaged by natural disasters. The SBA is the single largest backer of business loans in the country with a $45 billion portfolio holding about 219,000 loans.

The SBA offers programs for women, veterans, the physically disadvantaged, and various ethnic minorities. These loan programs not offered directly through the SBA, but are guaranteed by the SBA and offered through banks. The two largest programs that the SBA offers are the 7a Loan Guarantee program, which guarantees flexible loan guarantees for a number of different types of business loans for up to $1,000,000, and the CDC/504 Loan Program which helps guarantee loans for start up businesses, acquisitions and other needs of brick-and-mortar establishments.

An excellent resource for helping get set up with a minority business loan is Minority Business Development Agency (MBDA). The MBDA is an agency in the United States Department of Commerce that provides free consultation to minorities for business programs. The MBDA is very accessible, and can help anyone provided that they have a sensible business plan.

To apply for or use any of these programs, the applicant must have a very clear, stated goal for the business and must be able to present the planned use of capital in a clear fashion. It is also necessary that the applicant be placed front and center, and made clear that he or she is part of the stated minority for which he or she is applying.

This Business article was written by Mark Karavan on 11/18/2009