Minority Loans – Women
Minority Loans for Business Women
Nowadays there are numerous women entrepreneurs who own their own businesses. The numbers are actually impressive and have skyrocketed this last decade. The secret of their success lies to the different way of thinking and the not traditional business methods that bring a different air to corporate and industry world. The biggest problem that most women had to face, especially when belonging to a minority, was the initial funding of the business.
Today there are many minority lending and funding opportunities for women. The main change that occurred in minority loans was the Introduction of the Minority Business Development Agency whose main goal is to encourage and foster the minority owned businesses.
Loans for self employed women, or businesses run by women belonging to some minority have to meet certain requirements and criteria, ranging from the kind of business to financial and corporate management issues. The basic condition for every loan is that at least the half, 50%, of the total amount of investment has to be made by a woman, who will be the CEO of the company and business. In the case of partnership, at least 50% of the partners must be women, and again the total amount invested has to be made also by women. The company had to abide by the laws of profitable businesses, but if the character of the company is actually nonprofit, then the loans can take a form of lending-funding capital, with different interest and pay off conditions. When the company appears as joint stock one, half of the shares and the votes have to be held by women.
The credit record and reliability of the women asking and receiving the loan should be in good shape, and they must be capable of self investing to some sufficient extent. The minimum amount of loans usually given is 3000$ and the maximum can reach up to 200.000$, depending on the creditability of the company and the board of directors and entrepreneurs. In any case the interest and the amortization free period are negotiable.
The existence of minority loans for women is a very effective and practical way to encourage the female business expansion. Women have changed the standards in the corporate world and this is the main fact that urges financial organizations to consider women generally more dependable as business persons.Posted on: April 3, 2012, by : AfricanSisters