Minority Business Loans: Other Groups

For a minority business loan, the SBA defines "minority" as groups or individuals who have experienced prejudice.

The definition by default includes blacks, Native Americans, Hispanics, and many other minorities. It may nor may not include women. There is also a process whereby someone may "prove" they he/she has come from an economically disadvantaged background, and thereby be eligible.

But what does a homosexual entrepreneur do to obtain a minority business loan?

I don't have an answer.

Setting aside the SBA issue, how about bank financing, angel investment, or venture capital

As for bank financing, you know your community and your banker better than I ever could. If you don't know him/her now, get an introduction. Scope it out and use your best judgment.

As for venture capital, THERE I have an answer for you.

Throughout this discussion on minorities I have advised that the minority be forthcoming on his/her minority status, and weed out the narrow minded venture capitalists who wouldn't do business with them anyhow.

Well, unless your small business caters specifically to the gay community, I have different advice for you: DON'T BREATH A WORD OF IT.

With the possible exception of pro football, there probably isn't another industry on the face of the earth that is so testosterone-driven as venture capital. The "deals", the cigars, the back room banter, the hype -- everything shouts, "I am successful... I AM SUCCESSFUL."
And all of this is kept in an undercurrent, with a veneer of respectability laid on top.
A puny freckled-faced redheaded youngster has a better chance of influencing a venture capital firm than an experienced homosexual entrepreneur.

I don't speak out of disrespect for the venture capital community. That's just how it is. Neither you nor I are ever going to change it.

So what do you do? Well, there are a couple of things that might help.

Focus your efforts on venture capital firms in more liberal regions, such as San Francisco, or those that make a point of including women (I know of none that make a point of including homosexuals). Not all venture capital firms are narrow minded, and you might have better luck in the more liberal minded regions. However, since venture firms prefer working with local companies, this may entail relocating your business.

Work your networks like your professional life depended on it, for it probably does. Find out where others have been successful, and talk with them.

Follow advice presented elsewhere in this web site about your online business plan, advisory boards, incorporating, and formalizing agreements. In short, present your company as professionally as possible, no matter who your targeted clientele base is.

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