Black Entrepreneurs, Small Business Owners Not Taking Advantage of SBA Offerings
Here is a surprising statistic: Over 80% of small business owners have never visited their local U.S. Small Business Administration office.
The finding was revealed as part of a random survey of 409 owners and senior leadership at small businesses by national online lender Fundera and online research firm Qualtrics.
The survey is thought-provoking because many people often only think of the SBA as a place to get business loans. But the SBA can provide potential and existing entrepreneurs, including African Americans, resources to help with everything from opening a business to expanding an existing one. The reality of launching or sustaining a business is often more difficult for blacks than other ethnic groups, experts say.
And there are many reasons for that. African Americans typically have higher rejection loan rates, lower credit scores, and a harder time securing financing, to name a few.
Though there are many resources black entrepreneurs can use, Fundera claims the SBA is a good place to start. It says the SBA is helpful to any business—with resources for building a business plan, educational resources, and information on government contracting, SBA loans, and grants.
Fundera says some of that funding is precisely geared for minority businesses.
Additionally, the SBA can help minority-owned businesses land money-making government contracts through its 8(a) Business Development Program.
The SBA’s Disaster Loan Program can help replace or repair something your business lost, including equipment and business property hit by such catastrophes as tornadoes, wildfires, or hurricanes.
Fundera also offers a list of other resources black entrepreneurs can tap into to help them get help with everything from how to run a small business to becoming a certified minority business.