How to Get Loans For Indians in the US?

Did you know that more than 10 million businesses are owned by minorities worldwide? The number has doubled compared to one decade ago, which is incredible. Minorities, including Indians, run successful businesses that generate more than $1.7 trillion in annual revenue and give employment to more than 6 million people. Native Americans comprise around 1.6% of the American population and own and run more than 300.000 businesses. Even though the number of businesses owned by Native Americans has significantly increased over the years, their revenue is still relatively low. 

With access to financing options, Native Americans will get a better chance to start their business, create jobs and increase profit. Excellent governmental grants are given to Native American entrepreneurs to help them start their businesses, but getting a grant is hard, and the competition is highly competitive. Another way to fund their businesses is to get business loans for minorities, specially designed to help minorities thrive and run successful businesses. Business loans are not as difficult to get as grants and can help Native Americans and other minorities fulfill their dreams of being business owners. 

What Are the Best Loans For Native Americans & Other Minorities?

Excellent loans help minorities, including Native Americans, become entrepreneurs. These loans, like other loans, have to be paid back with interest, but they have better conditions because they’re created to support minorities. Let’s see the best loans for Native Americans in the USA. 

US Department of the Interior Indian Loan Guarantee Program

The Indian loan guarantee program is a special program for Native American-owned businesses by the US Department of the Interior. These loans are excellent because they have low-interest rates and long term. Suppose you want to apply for the program. In that case, your business must have 51% ownership by Native Americans, the service or products must benefit the economy of the tribal area, and the business must bring a 20% down payment to the table. This loan can be used for working capital, equipment, construction, refinancing, etc. 

Community Development Financial Institution Loans

The Community Development Financial Institutions are non-profit organizations that give loans and services to economically distressed communities. Half of the activities of the non-profit organization are towards helping the Native Americans, Native Hawaiians, and Alaska natives. They provide loans, mentorship assistance, investments, and training. This organization gives short- and medium-term loans with an interest rate from 6%-36%.

SBA Loans

SBA is the most popular government loan guarantee program. This federal agency gives out small business loans, and although they’re open to all entrepreneurs, their main goal is to help minorities and underdeveloped communities. You’ll have to make a 10%-20% SBA loan down payment for your business to qualify for an SBA loan. In addition, your business needs a personal credit score of at least 650. The advantage is given to businesses that have already been operating for more than two years. SBA loans have low-interest rates and long payment terms, 10-20 years. 


Microloans are excellent for business that doesn’t require a huge amount of money. Getting a microloan is better if your business needs a small capital, less than $50.000. The SBA also has a microloan program. If you want to apply for a microloan, your business must have a credit score of above 600, and you need to show a piece of evidence that your business can afford a monthly loan payment. New businesses can apply, and there’s no downpayment.

Short-Term Financing

Short-term financing is an excellent option for business owners who don’t have a great credit score but need the money to support their business. These loans are a great Native American business loan option because the application process is fast and doesn’t require submitting a lot of paperwork. The loans must be paid back within 3-18 months, using daily or weekly payments. The money can be used for making payrolls, inventory, marketing, etc. The only downside is that the interest rate is much higher than the rate of long-term loans. 

US Department of Agriculture Bussiness and Industry Loan Guarantee

Any business in a rural area can be eligible for a US Department of Agriculture Bussiness and Industry loan. This is an excellent funding option for Native Americans because they fulfill all the requirements. If you want to apply for this type of loan, your business must be located in a rural area with less than 50.000 inhabitants, and you must provide collateral to protect the lender’s interest in the loan. The collateral requirement can be tough to satisfy, but if you decide to use the loan to purchase equipment or real estate, you can use those to secure the loan. The rates are negotiated between the borrower and the lender, but they’re usually below-market, so they could help rural businesses grow. 

Business Credit Cards

Business credit cards are a convenient option for Native American business owners because they’re fast, and you can have the funds in no time. To apply for a business credit card, all you need is proof that you have a business, a copy of a recent business tax return, and a copy of a business license. Business credit cards have higher limits than consumer credit cards, and the funds can be used for anything your business requires. 


There are many funding options for Native Americans who want to start or improve their business. The government and many non-profit organizations have created loans with great conditions to support and help businesses owned by minorities and in rural areas. Follow the requirements and don’t be afraid to apply because these loans are the best options for Native Americans that want to be successful entrepreneurs. 

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