Wednesday, May 16, 2007

Access to Capital for African American Businesses

There was an interesting article in today's Los Angeles Times about access to capital for the African-American small business community.

The article points out that African American-owned businesses represent the fastest-growing segment of minority-owned businesses in the U.S., according to the latest census data. African American-owned firms grew 45% from 1999 to 2002, about six times the national average.

So where's the money to help these minority-owned businesses grow?

The article points to two African American owned banks, OneUnited Bank and Broadway Federal Bank, in the Los Angeles area - both have websites which indicate a willingness to lend to small businesses with real estate collateral.

What if your small business doesn't have real estate to offer as collateral?

The Los Angeles Times article suggests one might check out the Pacific Coast Regional Small Business Development Corporation (PCR). PCR is a private, non-profit corporation founded in 1977 to provide financial, educational and consulting services to small business owners in Southern California. PCR offers a number of small business financing solutions and administers the state's flagship loan guarantee program. All asset classes (accounts receivable, inventory, equipment and real estate) are taken into consideration as collateral for these loan programs.

Looking for a list of the top African American owned banks in the United States? Check out Black Enterprise's Top Bank List.

Still can't find a loan program directed at African Americans or other minorities? Check out my earlier blog postings for other resources!

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