There are several business grants for immigrants in the USA. These grants are beneficial if you are looking for assistance in building your business.
Most of the immigrants in the United States face a hard time finding a job. This motivates them to start their own businesses. Many immigrant entrepreneurs observe that cultural inclinations and language limitations often restrict them from easily accessing business financing opportunities. However, the good part is that there are several organizations that recognize and understand these unique challenges of finding business grants and loans for immigrants. Therefore, they tailor various loan products and grants for immigrants that better meet their needs and requirements –
Top grants for immigrants to start a business –
SBA loans –
Small Business Administration (SBA) is a government agency that supports small businesses in all ways. They help business owners to match with resources, lenders, assistance, and more. SBA loans are considered as one of the most affordable and popular small business loan options in the United States.
However, the only drawback it has is that in order to achieve an SBA-backed immigrant business loan, you have to complete a large amount of paperwork. Regardless of your status, they make sure to thoroughly inspect your documentation, including your immigration paperwork, as well as other necessaries necessary documents.
Below we have listed various SBA loans that are offered to the immigrants –
For lawful permanent residents: If you are an immigrant with Permanent Resident Cards, then you are eligible for SBA loans. Since it can take some time to get green cards, the organization acknowledges newly arrived immigrants with a valid immigrant visa and Customs and Border Protection stamp. These documents prove any immigrant to be a legal residence.
For lawful non-permanent citizens: Even after being a government institution, the SBA does offer business loans to immigrants who are non-US citizens. The principal requirement here is that non-citizen borrowers must be in the country lawfully with “an appropriate work visa,” mentioning a current date.
For asylees and refugees: You are also eligible for this loan if you are an immigrant who has sought asylum and refugee status. Besides this, it is also essential that you have a lawful permanent resident status.
Government grants –
The Office of Refugee Resettlement administers two programs, called the Wilson-Fish Program and the Microenterprise Development Program. These programs assist refugees with their financial needs and therefore are worth considering.
Apart from this, there are many other programs that help immigrants get money from the government. Non-refugees can look for financial assistance on Grants.gov by regularly checking the website for grants that fit their needs. One thing you have to remember while applying for a grant is that you need to do a complete job with your application, as there are many people who apply for the grants.
Friends and family –
This is one of the most common practices for people across the world. Pooling resources from friends and families to help meet the financial needs of your business venture is the easiest way. With substantial financial support from your near and dear ones will help you start your business with passion and pride, and hopefully, it will become profitable.
Business credit cards –
If used wisely, business credit cards can be one of the biggest help for providing short-term finances that are required to run your business. If you have a solid credit rating, you shouldn’t have much trouble getting approval.
However, it is important to remember that you need to use it wisely and avoid accumulating debt, especially if your card’s interest rate is high. Make sure to look for a card that offers an introductory period with no interest, so that you get time to earn the funds to make your payments on time.
Crowdfunding –
Successful crowdfunding campaigns can be a significant aid for immigrants to quickly start their business, sometimes in a more substantial way than anticipated. However, do not always expect a win from these campaigns as they can sometimes do not result in huge funding.
Still, this can be a reliable financing option for immigrants who want to try a low-risk option. This will also help you avoid giving up equity in your businesses.
Micro-loans or short-term business loans
Even after having a stellar financial background, your lack of credit history as an immigrant can make it difficult for you to get traditional loans. As a solution to this, you can opt for short-term loans or microloans that are ideal for your situation. Since they are less risky to the lender, they have less stringent application conditions.
The downside to obtaining micro-credit is that the loan amount generally caps out around $50,000. Also, a short-term loan will have relatively high payments, as you need to repay the loan in a shorter period compared to other loans, which can cause cash flow problems.
In a nutshell,
Remember to weigh your options as an immigrant entrepreneur!
Sadly, due to the cultural bias and practical realities of credit creation, obtaining financing as an immigrant can often be tricky. Not to mention, you’re likely to face a lot more paperwork than other applicants. Still, it is always an excellent option to try to achieve your goal. A helpful grant for immigrants can be your aid to make your dream come true of being a successful entrepreneur.
Exploring the above-mentioned options and understanding the differences between them can help you make the best decision for your business. Finally, only you or a trusted partner who is familiar with your business can choose among these to make it work the best for your plan. Also, consider the development of your business, the amount of financing you need, and the loan application process before deciding. Good luck!
PS: For Muslims please avoid loan with interest. It’s riba!!
