“I have a great idea and a business plan, but need funding in order to quit my job and pursue my dreams. Are there minority business grants or government loan programs available that will help me with my start-up costs? I’m ready to take the leap and become an entrepreneur.”

That’s a good question, and if you’re asking yourself that then your leaps and bounds the average person who tries to start their business on their own. Entrepreneurs know that the key to success is to use leverage — otherwise known as other people’s money (OPM). Most businesses fail not because they don’t have the right product or service, but because they simply run out of money.

The government is aware of that, as well as many private foundations that provide minority business grants and loans to help individuals succeed. Small business is the backbone to the American economy, and if people are unable to leave their jobs in order to take a chance, we will fail. That’s why minority business grants are made available, which is money that can be obtained to help your new venture get off the ground running without the financial risk.

What You Need to Obtain Minority Business Grants and Loans

Ideally, you want your business to succeed on its own and without government assistance. But likely you need financial aid to help you get started or to expand. What you will need is to show a clear plan on how your business will mature and be able to run on its own as a profitable entity.

Your grant proposal will be reviewed to ensure you meet minimum qualification requirements and that your request is a reasonable one. As long as you are 18 years old and an American citizen, you can apply for as many grants as you see fit.

The available lending and financial assistance programs are offered by both local/regional organizations, as well as government agencies. Ron Langston, Assistant Secretary of Commerce, has been diligently working to expand the growth of minority businesses and has been aggressive in making assistance available for those who are working towards transitioning from an employee to an entrepreneur.

The FAME Renaissance organization is an example of a regional group that have numerous business development programs specifically designed to help business owners build commerce in specific neighborhoods. The HOPE Operation is another in Southern California that has provided over $72 million in grants and loans for minorities — for both homeowners and soon-to-be small business owners.

As you can see, these funding programs are plentiful and available in many forms, including grants for African Americans, Hispanics, American Indians, Asian Americans, and more. In addition, there are financing options for various special interest groups, such as veterans, low income families, disabilities, teachers, musicians, and those suffering from substance abuse.