In this age where cultures are no longer barriers, Hispanic community in the US has been growing in numbers. USA and its federal government agencies has come up with numerable grants and financing options to help the Hispanics come forward and be a part of the growth in America. There are various grants and funds available for both the government and private sectors for Hispanics looking to set up their business. A 2000 report published by the US Minority Business Development Agency concludes that the growth of Minority Business Enterprises (MBE) has been due to its continuous contribution to the US economy.

Hispanic or Latino person is someone who is of a Mexican, Puerto Rican, South or Central American or other Spanish Culture, disregarding the race to which he belongs, according to the official definition given by the federal government of the United States of America. The various financing options available for the Hispanic businesses are:

Government Funding and grants- The government supports Hispanics to set their business through various small business loans and alternative funding options. Various funding programs and grants are made available with lower interest rates to help Hispanics and other communities start their business by buying various fixed assets and other necessities. Various consultancy services for business and counseling services are also provided to help the Hispanic community. Government funding is provided to only those Hispanics who qualify the norms and criteria set down by the government. The business should be done with the motive of profit and is to be conducted in the US soil.

SBA- Small business administration is a government federal agency which provides grants and loans to Hispanic Communities and other ethnic groups looking to do business in USA soil. SBA itself doesn’t provide any small business loan but guarantees a part of the loans on behalf of the borrower through its preapproved lenders. SBA loans comparatively come with low interest rates and longer term period.

Equity financing- In equity financing, fund is typically raised by selling a share to the investors. There are angel investors who are a group of people willing to fund a start up venture that can be a friend, family etc. from their own funds. Normally angel investors fund from $20,000 to $100,000. The other options are venture capitalists that raise money from various financial institutions, banks, investors and other financial resources. These investing firms are willing to fund in ventures with high risk bringing in higher returns. They normally fund upwards of $100,000 depending on the scale that the business wants to achieve.

Private financial institution and alternative lenders- There are many other private institutions and alternative lenders offering great deal of small business loans based on the size and type of business. Hispanics and other ethnic groups can obtain various tailored loan programs to meet their specific business needs. Though the interest rates may be high as compared to grants and loans provided by the government for the Hispanic community, the process is not that lengthy as compared to the government federal agencies.

USA is a sovereign state that provides equal opportunities to every community. Various Hispanic businesses have been successfully funded by the grants and loan options available in the US.

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