Breaking Barriers: How No Revenue Startup Loans Empower Minority Entrepreneurs
In the United States, there are currently over 11 million businesses owned by individuals from minority communities, generating a staggering $1.8 trillion in revenue every year. This impressive growth and success are relatively new, as minority business owners previously faced severe limitations and restrictions. However, thanks to the availability of unique loan options, particularly no-revenue startup loans, minority businesses are now thriving.
If you’re a minority business owner looking to expand your enterprise, we urge you to take advantage of these loan options by applying now. While large banks and lending corporations have always offered these choices, they often prioritize their profits over the broader economy’s needs. Unfortunately, this means that they are hesitant to lend to minority businesses with lower income levels, as they prioritize the numbers over the people.
This approach is problematic since businesses require funding to generate revenue and sustain their operations. In a recent survey of 1,500 minority businesses, 38.6% identified a lack of funding as a significant obstacle to growth. At BitX Funding, we understand the challenges faced by minority business owners and are committed to keeping you informed about the available options to access no-revenue startup loans.
What Are Minority Small Business Loans?
Loans and lending programs directed towards servicing businesses with at least 51% minority ownership qualify for minority small business loans. These loans aim to even the playing field and offer disadvantaged companies a chance to succeed. Some of these loans have more stringent requirements, such as all employees being of a given minority. When applying, check the fine print and additional requirements, especially for no-revenue options.
Instead, various lending programs such as the Small Business Association (SBA) and not-for-profits offer financing options for minority businesses. Sometimes, you may get better opportunities from more traditional loans, so it’s always good to know your options. An example, the SBA 7(a) program is an excellent option while being open to all small businesses.
Getting the Right No-revenue Startup Loan is Easy if You Know Your Options
The issue with seeking financing options for your business is the overwhelming number of choices available. To make the process easier for you, we have compiled a list of lending programs that offer no-income financing options. It’s important to keep in mind that to qualify for startup loans, you must have a personal income of at least $50,000, and it must be approved. Additionally, a FICO credit score of over 700 is required.
SBA 8(a) Business Development Program
The SBA 8(a) business development program offers small business loans to small disadvantaged businesses. The program requires you to:
- Be a small business according to SBA’s size standards
- not previously participated in the program
- Have at least 51% of the company owned by a U.S. minority
- Demonstrate good character and potential
Although the SBA 8(a) program is a viable option for minority business owners, it has some of the most stringent requirements for revenue gain. It’s essential to note that the program does not offer personal loans.
Instead, it allows 8(a) certified businesses to be eligible for 5% of all federal contracting dollars without competition. For startup businesses, this remains a viable option. However, it may not offer resources as quickly as the methods below.
SBA Microloan Program
Another option from the SBA is the microloan program, designed specifically for minority startups. The revenue is minimal, offering an average of $13,000 per business. Despite this, it remains an excellent option to get the income necessary to launch your startup to success.
SBA loans are provided by bank and fintech lenders, as they are not provided by the SBA directly. SBA micro-lenders, usually non-profits, offer assistance. Often, these loans will require training on launching a startup business, making the resources a valuable option.
For minority business owners who are willing to conduct research and search for specific options, grants can be a splendid financing alternative. Grants come in various forms, sizes, and durations, providing an array of options to choose from. As a minority business owner, you have a unique niche to leverage, with a much smaller pool of competitors. All you need to do is search for grants relevant to your business, including non-revenue startup loan options, and apply with the necessary paperwork.
Getting the necessary cash flow can be challenging for businesses that use invoices to collect revenue over long periods. Invoice financing offers a way to get immediate benefits from customers, especially those who take their time paying.
You take a loan against the outstanding invoice, getting up to 90% of the value upfront. The invoice is now the lender’s responsibility, who the customer pays. As a result, you receive the remaining money minus the lender fees when the customer pays the invoice.
For these reasons, invoice financing is an excellent option in place of a no-revenue startup loan when cash flow is incoming but not consistent.
No Revenue Startup Loans with BitX Funding
As the trusted advisor for loans to the minority community, BitX Funding has years of experience in funding startups and small businesses. With hundreds of satisfied customers and positive reviews on BBB and Trustpilot, BitX is the authority in funding no-revenue startup loans.
We offer a wide range of financing options. Including business lines of credit, equipment financing, traditional loans, invoice financing, and business credit cards. Our team is committed to ensuring that you make the best decision for your business based on your financial situation and future goals.
If you’re a startup or a business with no revenue, we have options for you. Our loans with no revenue requirements and minimal credit history checks can help you get the cash flow you need. We can also provide assistance with SBA loans and personally guaranteed loans.
Whether you’re part of an ethnic minority or any other minority group. BitX Funding is the go-to option for businesses looking for startup business loans. We will work with you to understand your business plan and help you succeed.