Black-owned businesses in Harlem were already struggling to survive before the pandemic, as changes in the demographics of the neighborhood, rising commercial property prices and rents, along with difficulties to access funding have pushed African American business owners to the brink of bankruptcy.
A recent article from CNN highlighted the challenging environment in which businesses in Harlem are currently in after interviewing several black business owners in the area who said they were already behind on their rent payments amid the shutdowns that took place during March and April.
That said, the issues that black-owned business owners face are not confined to Harlem, as a national survey commissioned by Groupon and the National Black Chamber of Commerce found that 63% of black business owners struggled to secure capital for their businesses while 33% also faced obstacles to accessing government-backed programs such as grants and reliefs.
Considering this context, the following article aims to present a tailor-made financing instrument for black-owned businesses known as small business loans for minorities, which are designed with the specific needs and requirements of black business owners in mind.
How do small business loans for African Americans work?
Small business loans for minorities are financing instruments designed to help black-owned businesses in securing the funding they need.
Although these loans function similarly to any other loan, they tend to offer more advantageous conditions such as lower interest rates and longer credit terms as a way to support the black community in Harlem -and the whole country- to keep their cultural contribution to the area alive.
These small business loans for minorities have gained importance lately, as although black individuals account for 22% of the entire population of New York City only 2% of them own a small business, primarily due to the difficulty of accessing funding to lift their ventures off the ground.
Furthermore, a local economic development survey also found that Black-owned memberships dropped nearly 15% from 2011 until the early 2020s, as black-owned businesses kept extinguishing amid the virus outbreak and the financial obstacles that came along with it.
Fintech companies make it easier for black-owned business to obtain funding
To present a feasible solution to this issue, financial technology companies have facilitated the process of applying for small business loans for minorities by introducing web forms and artificial intelligence to expedite application and approval times.
Although certain requirements still apply, the time that it would typically take a black business owner to get approved is dramatically diminished by the incorporation of these technologies, with online lenders now offering to respond to applications in as little as 48 hours.
Camino Financial, a California-based online lender, is one of those lenders that have used technology to reduce the usual hurdles that small business owners typically face when applying for a loan, such as having to fill tons of paperwork or waiting in line or over the phone until a representative is available for them.
Black business owners can get as much as $400,000 through these online small business loans for minorities and the requirements tend to be more flexible compared to loans offered by traditional institutions. They are considered affordable as the loans are conceived to assist these businesses in getting back on track.
Can black business owners in Harlem apply for small business loans for African Americans?
Given the cultural heritage and strong footprint that the black community has left on Harlem, the contribution that their small businesses make to the community is of vital importance.
For this reason, if you are a black small business owner in the area you can give online lenders like Camino Financial a try to fund the expansion of your business or to fill a temporary cash-flow gap.
Have you faced obstacles in the process of obtaining financing for your small business lately?
Can small business loans for African Americans help your company thrive?
Considering applying for a small business loan from Camino Financial to achieve your company’s goals.