Business Loans for Minority Business Owners
Apply online in minutes and get up to $250K to grow your minority-owned business.
TrustScore 4.6 | 4674 reviews
150K+ Businesses
funded since 2006
$15 Billion
delivered across the U.S.
A+ Rating
with the Better Business Bureau
Financing support to help minority-owned businesses grow.
Historically, minority-owned small businesses have faced greater challenges when seeking financing. While lenders are required to evaluate all applicants equally, systemic barriers can still get in the way. However, that gap in opportunity shouldn’t have to be a gap in funding.
OnDeck is committed to supporting inclusive business success. We hope to level the playing field by offering access to fast, fair and flexible business financing that helps small business owners move forward. Whether you're investing in new equipment, hiring staff or just need working capital, we're here to help you find a financing option that fits.
Best funding options for minority-owned businesses.
SBA 7(a) Loans
The SBA 7(a) lending program is backed by the U.S. Small Business Administration and are some of the most common government-guaranteed business loans available. They can be used for working capital, equipment, real estate or refinancing existing debt. Loan amounts can go up to $5 million, and repayment terms are long — often 10 years or more. These loans are best for established businesses with strong financials and a solid credit score.
Community Development Financial Institutions (CDFIs)
CDFIs are mission-driven lenders focused on expanding economic opportunity in underserved communities. They provide funding, training and support to businesses that may not always get the attention of traditional banks. Many CDFIs actively work with minority small business owners and are deeply rooted in the communities they serve, helping bridge capital gaps and support growth in underserved markets.
Online lenders
Online lenders like OnDeck provide a faster, more streamlined path to small business funding than many traditional banks and credit unions. The application process is typically straightforward, with decisions delivered quickly and funding available fast. While interest rates can be higher, these can be a useful option for business owners who want to avoid a long approval timeline.
SBA Microloans
SBA Microloans are small loans — typically under $50,000 — designed to help businesses cover startup costs, inventory, equipment or other expenses. They often come with more flexible requirements and may include access to business support or training. The microloan program can be a good fit for newer businesses or those that don’t yet qualify for larger financing. With approachable terms and lower barriers, microloans can be a useful option for minority entrepreneurs looking to get established or grow sustainably.
The SBA also offers targeted programs like SBA 8(a) and the SBA Community Advantage program, which are designed to support socially and economically disadvantaged businesses.
State and local loan programs
There are many state and federal programs that provide resources to help minority-owned businesses access funding and technical assistance. These organizations can offer guidance on applying for loans or grants, navigating government contracts, and connecting with mentorship or training opportunities. Others aim to integrate more diverse suppliers into national supply chains, strengthening business resilience and inclusion. While specific programs vary, they’re often designed to support long-term growth and expand access to capital for historically underserved business owners.
Ondeck Business Loan Options for Minority Entrepreneurs
OnDeck Line of Credit
A revolving credit line you can draw from 24/7 to receive funds within seconds.*
- Credit limits from $6K - $200K
- Flexible repayment terms of 12, 18 or 24 months
- Great for keeping funds on hand
OnDeck Term Loan
A one-time lump sum of cash with an eventual option to apply for more.
- Loan amounts from $5K - $250K
- Repayment terms up to 24 months
- Great for larger investments in your business
Grants and alternative financing for minority-owned businesses.
Loans aren’t the only way to access capital. Many business grants are offered through nonprofit organizations or in partnership with government agencies. There are also alternative financing options that can provide funding with different terms, timelines and trade-offs.
Government-backed grants & Initiatives
Grants provide business funding that doesn’t need to be repaid, making them one of the most desirable options. They’re typically offered by government agencies or nonprofits, and they’re often competitive — with specific eligibility requirements or application windows.
Grants.gov and the Minority Business Development Agency (MBDA) are two reliable places to find national opportunities. While grants can take time to secure, they’re worth exploring for minority-owned businesses focused on innovation, community impact or early-stage growth. In addition to funding, some programs provide access to a mentor network that supports business planning and strategic growth.
Merchant cash advances
Merchant cash advances (MCA) isn’t a loan. Instead you’re selling a portion of your future credit card or debit card sales in exchange for immediate cash. Repayment is automatic and is typically based on a percentage of your sales. It can be a flexible way for businesses with steady card revenue to access capital but it’s often more expensive than a traditional loan. Be sure to review the cost and terms before making a decision.
Crowdfunding platforms
Crowdfunding lets you raise money by collecting small contributions from a large number of supporters, often through online platforms like Kickstarter or GoFundMe. It’s not just a way to fund your business — it’s also a way to build a community around your brand. You don’t need to repay, but many businesses offer something in return like early access or an exclusive gift.
Invoice factoring
Invoice factoring is similar to an MCA in that you’re selling a portion of your future revenue. Instead of being based on card sales, you’re selling your unpaid invoices to a third-party. The factoring company will then collect directly from your customers. Keep in mind that you’ll be selling your invoices at a discounted rate which can affect your profit margins.
Why minority-owned businesses choose OnDeck.
No hard credit pulls
Apply for a business term loan with no hard credit pull.
Fast funding
If approved, business term loans can fund as soon as the same day.†
Build business credit history
Our term loans can help build business credit history with on-time payments.
How to apply for a business loan for your minority-owned business.
-
Step 1
Complete the application.
Our streamlined process is designed to be completed in just minutes.
-
Step 2
Get a decision.
We’ll let you know if you qualify for our term loan, line of credit or both. If approved, you can then choose your loan amount and repayment terms.
-
Step 3
Receive your funds.
Sign your contract and get funds as soon as the same day.†
What do minority business owners need to qualify for funding from OnDeck?**
1 Year
in business
Business
checking account
$100K
business annual revenue
625
personal FICO® score
FAQs: Minority Small Business Loans
The best loan is the one that fits your business needs — whether you’re managing daily expenses or planning for long-term growth. Here are two common options to consider:
Business term loan. A business term loan is a loan option that provides a lump sum of cash upfront that you repay over time in smaller installments. It’s a good choice for larger, one-time investments like upgrading equipment, launching a new location, or refinancing debt.
Business line of credit. A business line of credit gives you access to a set credit limit that you can draw from as needed. As you repay, the funds become available again — making it ideal for covering on-going costs, managing cash flow, or handling unexpected expenses.
Lenders are required to treat all borrowers equally, so there aren’t loans exclusively for Black-owned businesses. However, organizations like the National Minority Supplier Development Council (NMSDC) and Business Consortium Fund offer programs and support designed to improve access for minority business enterprises (MBE).
OnDeck doesn’t require a formal business plan or tax returns. Instead, we look at your real-time business data, including recent bank statements and revenue history, to determine eligibility. Other lenders may ask for tax returns or more documentation depending on the type of financing.
Lenders are legally required to treat each application the same and can’t discriminate based on sex, race, age, religion, etc. So there are no loans reserved for any specific group. However, some programs do focus on improving access for underrepresented business owners, including women who are a part of a qualified minority group. These groups include African American, Asian-Indian, Asian-Pacific, Hispanic, Native American and Native Hawaiian individuals.
These organizations offer resources, training and help connecting with lenders, which can help make it easier to find and access funding.
There are national programs that offer hands-on support to help minority business owners grow. The Minority Business Development Agency (MBDA) runs centers across the country that provide training, mentorship and help connecting to capital. The Small Business Administration (SBA) also partners with local organizations and business centers that offer workshops, mentorship and guidance on how to prepare for funding. These programs are a great place to start if you want help building a business plan, strengthening operations or exploring new growth opportunities.