Funding for minority firms

Nation's Business, Sept, 1997 by Stephen Blakely

I want to start a business that would train people to use software. I have a very strong business plan, and potential clients are waiting for me to open my doors. Where can I find funding? Are there options geared toward minority-owned companies? E.S., Dover, N.H.

In the private sector, the National Bankers Association in Washington, D.C., represents minority-owned banks that target loans to minority-owned businesses. For the nearest member bank in your area, call the association at (202) 588-5432.

Most states have an agency that provides one-stop assistance on financial programs and services for small businesses. Check the library or the phone book for your state's office of small-business support.

On the federal level, district offices of the U.S. Small Business Administration (SBA) can direct callers to local organizations that provide various services and loan programs for small businesses; call 1-800-827-5722 to find the district office nearest you.

The U.S. Commerce Department's Minority Business Development Agency funds Business Development Centers nationwide to help minority-owned start-up businesses; call (202) 482-1015 for more information.

In addition, all major federal agencies have an Office of Small and Disadvantaged Business Utilization. These offices help funnel a share of federal contracts and subcontracts to capable businesses that are small, disadvantaged, or both.

A well-developed business plan is essential for finding capital. Most banks require such a plan before making most types of loans, and the SBA will not guarantee long-term loans without a plan. (For more on the importance of business plans in obtaining capital, see "One Giant Step Toward A Loan," on Page 34 of the August issue.)