Many minority business owners find that one of their biggest challenges is obtaining sufficient funding. If you’re in that situation, keep reading for several tips that will make funding easier to find.

Tip 1: Create a Strong Business Plan

All minority business owners can benefit from having a strong business plan. Creating one from the start will give your business a foundation to rely upon. Additionally, for funding purposes, lenders will virtually always want to see your business plan. If you want guidance on writing a business plan, check out this helpful page on the topic from the Small Business Administration (SBA).

Tip 2: Understand Your Funding Options

Another beneficial step for minority business owners is taking the time to research different funding options. For example, a traditional loan will have different requirements than seeking funding from an angel investor. Alternative lenders are another option, as are crowdfunding and SBA-backed loans. There are more avenues to funding than ever before, and chances are that one will fit your needs better than the rest.

Tip 3: Utilize the Government

Several government organizations can be helpful for minority business owners: the aforementioned SBA, the Minority Business Development Agency (MBDA), and Rural Development, which falls under the US Department of Agriculture (USDA).

For its part, the SBA does not reserve loans specifically for minority owners; however, they do back a huge number of loans, making it easier for business owners to obtain funding.

The MBDA is more directly targeted at minority business owners. It offers support through a network of business centers. You can look at those centers up by location on this page.

Finally, USDA Rural Development promotes business growth in rural areas. According to their website, they offer “loans, grants and loan guarantees.” If you’re a minority with a rural business, consider tapping into Rural Development’s considerable resources.

For more tips on the business world, take a look at Integrity Financial Capital’s other blog posts.