Expanding Opportunities for Diverse Small Business Owners

In recent years, the U.S. has expanded its support for diverse small business owners, helping new segments of entrepreneurs access essential resources. These programs create new opportunities for business owners who identify as LGBTQ+, minority-owned, Native American, rural or veteran-owned.

Each of these segments faces unique challenges, and by acknowledging their needs, the U.S. Small Business Administration (SBA) and related organizations are encouraging a more inclusive and diverse small business landscape.

Here’s a look at the latest initiatives and how they’re transforming these business communities.

LGBTQ+-owned businesses

This community has a growing presence in entrepreneurship, and the SBA and related organizations recognize the importance of inclusive resources and support. By fostering connections with other business owners, mentorship opportunities and certification programs, LGBTQ+ entrepreneurs can find a more equitable business environment. Some of their resources include:

• LGBTQ+-owned businesses can find support by using the SBA’s local assistance tool, which connects them to nearby offices that offer guidance on whether the 8(a) Business Development Program is the right fit.

• The National LGBT Chamber of Commerce offers certification, making LGBTQ+-owned businesses eligible for programs like mentorship, scholarships and other developmental resources after their first year.

• The SBA is dedicated to outreach initiatives, aiming to create a welcoming environment and acknowledge the importance of LGBTQ+ business owners at all community levels.

Through these resources, LGBTQ+-owned businesses are better equipped to build sustainable ventures while contributing to a more inclusive economy.

Native American-owned businesses

These are integral to many local economies, yet they often lack access to essential business resources. The SBA’s Office of Native American Affairs (ONAA) facilitates business growth by offering technical assistance, workshops and specialized tools.

• ONAA provides promotional materials, hosts national economic development events and offers access to resources tailored for Native American entrepreneurs.

• Various organizations, such as the National Center for American Indian Enterprise Development, help Native American entrepreneurs gain access to technical assistance on essential business operations like taxes, marketing and financial management.

• Collaborations with agencies, such as the Department of the Interior’s Bureau of Indian Affairs, offer additional educational and employment opportunities. With these resources, Native American-owned businesses can achieve greater economic empowerment, leading to sustainable growth in their communities.

Minority-owned businesses

These businesses often face barriers in accessing capital, training and networking opportunities. The SBA, alongside other federal agencies, is actively working to reduce these obstacles, offering programs specifically designed to empower minority entrepreneurs.

• The SBA collaborates with organizations like SCORE, small business development centers and women’s business centers to provide high-quality counseling and training for minority business owners.

• T.H.R.I.V.E. is an executive-level program that accelerates growth for small businesses in underserved cities, helping them create three-year strategic growth plans with specific targets.

• Designed for socially and economically disadvantaged businesses, the 8(a) Business Development Program offers set-aside and sole-source contracts and provides business opportunity specialists to help navigate the federal contracting landscape.

These programs are tailored to help minority-owned businesses overcome historic disparities, creating a stronger economic foundation for their communities.

Rural-owned businesses

Businesses in the rural sector play a critical role in local economies but often face unique challenges like limited access to capital and higher operational costs. The SBA and U.S. Department of Agriculture work closely to offer financing, export assistance and disaster recovery support to rural entrepreneurs.

• The SBA offers 7(a) and 504 loans for working capital, real estate purchases and business expansion. The 7(a) loan is a versatile option for rural businesses unable to secure traditional financing, while the 504 loan provides fixed-rate mortgage financing through certified development companies.

• Created under the Tax Cuts and Jobs Act of 2017, Opportunity Zones aim to bring capital investment into underserved communities, while the HUBZone program grants special access to federal contracts for businesses in underutilized areas.

• The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (SBTT) programs provide funding for rural businesses engaged in research and development, fueling innovation in underserved areas.

These targeted programs not only enable rural businesses to grow but also ensure that they contribute to a stronger, more resilient rural economy.

Veteran-owned businesses

These businesses are recognized for their valuable contributions to the economy. The SBA offers specialized programs to support veteran entrepreneurs and help them navigate business challenges after military service.

• Veteran business owners can explore several loan programs through the SBA to find the best fit for their financing needs. The Military Reservist Economic Injury Disaster Loan Program, for example, helps veterans with financial losses when employees are called to active duty.

• SBA’s Veterans Business Outreach Center provides one-on-one mentorship, helping veteran entrepreneurs refine their business plans, understand government contracting and access capital.

• The Veteran-Owned Small Business Certification is essential for veteran businesses seeking government contracts, offering streamlined access to opportunities designated specifically for veteran-owned enterprises. By taking advantage of these resources, veterans can leverage their unique skills and experiences to build thriving businesses.

Next steps

• Determine whether your business qualifies for certifications such as the LGBTQ+-owned, HUBZone or veteran-owned certifications to access exclusive contracts and resources.

• Utilize SCORE, small business development centers or veterans business outreach centers to gain specialized training and counseling tailored to your business’s needs.

• Look into SBA loans, grants or the SBIR/STTR programs to secure the capital needed for business expansion, research or disaster recovery.

• Many programs provide mentorships or workshops that offer guidance on growth strategies and navigating federal contracts.

The expanded resources for LGBTQ+, minority, Native American, rural and veteran-owned businesses reflect a shift towards a more inclusive entrepreneurial landscape. By recognizing the distinct needs of these segments and providing targeted support, the SBA and other agencies are empowering these business owners to build sustainable, competitive enterprises. As more entrepreneurs explore these resources, they’ll find new avenues to achieve business growth, create jobs and contribute meaningfully to their communities.

Heritage Bank has several programs that may also benefit your business.

The Washington State Small Business Credit Initiative was created to support small businesses and empower them to access the capital needed to invest in job-creating opportunities. A portion of the program funding is targeted towards very small businesses and businesses owned by socially and economically disadvantaged individuals—a population that often faces difficulties in obtaining the necessary funding to start or expand their business. (Read more about this program in our Q3 2024 issue.)

This program is exclusive to businesses and nonprofit organizations located in Washington state. It’s administered by the Washington State Department of Commerce in partnership with the U.S. Department of Treasury and financial institutions statewide.

The Heritage Bank Community Development Entity encourages business expansion in low-income communities by providing an attractive loan program with better rates and terms and more flexibility than a traditional loan. These investments help revitalize development by creating jobs and increasing the availability of goods and services in economically distressed areas. (Read more about this program in our Q4 2021 issue.)

Want to learn more about how Heritage can help? Visit our website at heritagebanknw.com to schedule a meeting with one of our experienced bankers.