The Covid-19 pandemic had a major impact on the entire human race. In the economy, most businesses were affected by the mobility restrictions implemented to reduce contagion. Fortunately, the repercussions for U.S. businesses appear to be less than expected at the beginning of the pandemic.
According to the study Business Exit During the COVID-19 Pandemic: Non-Traditional Measures in Historical Context, the number of businesses permanently closed was 200,000 above the average number of businesses that disappear annually, which is about 600,000 in the United States.
Companies of all sizes have had to approach various financial resources to keep their businesses operating and, above all, generating revenue. Since the administration of former President Donald Trump, the U.S. government has authorized the implementation of the Payment Protection Program (PPP), a strategy to help American businesses.
Unfortunately, not all companies were eligible for this support, particularly minority-owned businesses. An alternative to combat the effects of Covid-19 on these companies are resources such as grants for minorities or small business loans, which allow them to access capital to remain in operation.
This program originally included a budget of US$349 billion. Due to the great demand, it was necessary to carry out another funding round of 320 billion dollars, which lasted until August 2020, and a final round was implemented to continue supporting small companies. However, according to information from the Investopedia website, the program ended on May 31, 2021.
Many minority-owned businesses, particularly those owned by immigrants, are still in the process of recovery. In the following, we present some alternatives to get funding and keep their businesses running, despite not benefiting from the support of the PPP.
Small business grants for minorities
This option is one of the most interesting for members of minorities since they grant support without the need to return or with payment facilities. The intention is to improve the social and economic situation in which they currently live. Grants for minorities emerged as a direct action of associations that seek to provide equal access to financing to generate entrepreneurship within the Black, Asian-Pacific, Asian-Indian, Hispanic, and Native American communities.
According to the analysis of Camino Financial experts, these are the six best business grants for minorities in the United States, as they offer specialized products for these communities.
- MBDA Business Grants
- First Nations Development Institute Grant
- NABDI Grant
- NBMBAA Scale-Up Pitch Challenge
- Amber Grant
- AWGC Grants
This type of grant is awarded mainly to innovative companies that seek the welfare of their community or generate paradigm shifts. Another aspect that minority business owners should consider before applying for this resource is that the process is usually slow since many companies apply for it. Find the best small business grants for minorities and get the support you need to get your company back to pre-pandemic revenues.
Another resource that business owners can access to meet their financing needs is small business loans. These types of products are offered by financial institutions with the intention of providing access to capital to businesses that have been denied this service in traditional banks.
If this type of alternative meets your needs, we recommend that you first analyze the options on the market so that you can access the financing that best suits your needs, but above all, your ability to pay. Getting a commercial loan is an excellent option if you manage it in an orderly manner and pay on time; this will give you a good credit score and will allow you to access better credit in the future.
The situation for minority-owned businesses in the United States has not been the same as for the rest of the companies. Inequalities became more visible and had an immediate impact on business development. For immigrant business owners, it will be necessary to continue to stand up, face the situation, and trust that hard work will pay off.