Business Loans for Immigrants

Funding your small business as an immigrant can be a challenge. From prohibitive policies to credit challenges, you need loans built around your experience.

FairFigure’s cofounders come from immigrant families, and helping you succeed is part of our DNA. Here are business loans for immigrants that will help you get your small business funded. Step 0: Create a Fundability Identity The prerequisite to funding your business is ensuring that you will be able to secure financing once you start applying for it.

Immigrants can find funding, but it can be tricky, depending on their legal status.

Individuals with a green card or full citizenship can get a Social Security number to build personal credit, which can be used to facilitate the business funding process. They can also get an EIN to build business credit.

Unfortunately, personal credit profiles do not cross borders. So even if you have good credit in your country of origin, you’ll have to start building your credit again in America.

A fundable business identity means that your business’s name, address, and phone number are consistent across all business financing applications. Make sure that you get an Employer Identification Number (EIN) with the IRS and DUNS number with Dun and Bradstreet, the top business credit bureau.

It’s crucial to understand how to set yourself up for success when starting a business to avoid potential obstacles and circumvent them early.

1. Start with Vendor Credit

Vendor credit is the first stop for every new business. Vendor credit is easily obtained and helps you establish credit history.

There are plenty of net 30 accounts that you can apply for to get started. Some examples of places where you can get vendor credit include:

• Coast to Coast Office Supply: Coast to Coast Office Supply offers a net 30 account that helps you build business credit by reporting to Experian every month. They offer a range of office supplies and digital downloads.
• Namynot: Namynot is a bit different in that it offers marketing services rather than physical goods. They offer tradelines of up to $10,000 and report to both Dun & Bradstreet as well as Experian.
• JJ Gold: JJ Gold offers a unique collection of corporate gifts that spans everything from apparel to beauty products. They report account activity to Dun & Bradstreet and Equifax.

2. The FairFigure Card

The FairFigure Card can be an invaluable resource if you’re an immigrant looking to fund your small business.

The FairFigure Capital Card is an EIN-only card that helps you avoid the need for personal credit when you’re trying to finance your business. It also comes with no paperwork and doesn’t require a personal guarantee.

Rather than receiving a credit limit based on your creditworthiness, you receive funding based on your business revenue. The more you make, the more funding you’ll be able to access.

It’s also much easier to qualify for than traditional business credit cards. If you have a business that’s at least three months old that generates $2,500 each month, you can get a FairFigure Capital Card.

Better yet, it comes with perks like flexible repayment options (four weeks or eight weeks), funding that grows with you, and credit-building support, as each transaction is reported to the business credit bureaus: SBFE, Dun and Bradstreet, Equifax, CreditSafe, and the FairFigure Foundation Report.

If you need to fund your business and build credit, the FairFigure Capital Card will help you achieve both.

3. Fuel Cards

Does your business rely on a small fleet of vehicles to keep your business running smoothly? If so, fleet cards or fuel cards are another solid option for building credit.

Fuel cards can be easier to qualify for than traditional business credit cards. Also, many of them are EIN-only. This helps you avoid personal credit checks that could affect your scores.

Some fuel cards worth looking into if you’re seeking to build credit and receive fleet benefits include:

• AtoB Flex Fuel Card: The AtoB Flex Fuel Card is a top fuel card to consider if you want an EIN-only option that offers ample rewards. Apply if you want gas rebates, the ability to unlock more with premium membership, and regular reporting to Experian.
• Coast Fuel Card: The Coast Fuel Card is designed for businesses that enjoy low subscription costs, cash back, and gas rebates, and no annual fees or interest rates. They report card activity to the SBFE.
• Shell Small Business Card: The Shell Small Business Card is a great choice if you use Shell stations frequently and want to be rewarded for your activity. They’re a bit tougher to qualify for, but they offer a host of features to help you manage your fleet effectively.

4. Normal Business Credit Cards

Normal business credit cards are much easier to attain once you have credit history and strong business revenue.

That being said, it’s important to target those that are easier to qualify for. This will allow you to get your foot in the door faster and work toward better business credit cards. Consider options like:

• The Capital One Spark 1% Classic: The Capital One Spark Classic Card offers unlimited 1% cash back, unlimited 5% cash back on hotels and rental cars, and no annual fee. It does have a rather high APR of 29.74%.
• The Chase Ink Business Unlimited Credit Card: The Chase Ink Business Unlimited Credit Card comes with no annual fee, unlimited 1.5% cash back, and a $750 sign-up bonus. This card features a variable APR of anywhere from 17.49% to 23.49%.
• The BoA Business Advantage Unlimited Cash Rewards Secured Business Credit Card: Unsecured cards are better, but there are secured options. This BoA secured card offers unlimited 1.5% cash back and a minimum $1,000 security deposit.

Take care to do your due diligence before applying for a business credit card. Make sure they report card activity, won’t overwhelm you with high APR, and offer terms and rewards that benefit your small business.

5. New American Lending Business Loans

Now that we’ve covered some of the steps you need to take to secure funding and viable funding opportunities, it’s time to take a closer look at business loans designed specifically for immigrants. The first option is New American Lending business loans.

New American Lending is a nonprofit lender and CDFI that focuses on supporting refugees, asylum seekers, and immigrants. They provide immigrants with the tools they need to succeed that are otherwise difficult to secure elsewhere.

Their business loans for immigrants are characterized by:

• Competitive interest rates
• Funding up to $15,000
• Low-fee, Riba-free loans
• Additional support in the form of free business and financial coaching

What immigrants need to know about these loans is that they’re not available everywhere. Take a look at the map on their loans page to see whether or not you can secure a loan with them. If not, there are other options!

6. Accion Opportunity Fund Loans

The Accion Opportunity Fund is a non-profit, small business lender that is geared toward supporting underserved communities, including immigrants looking to start their own small businesses.

As with most sources of business loans for immigrants, Accion Opportunity Fund goes beyond just providing funding. They have a wealth of resources that will support you as you navigate your small business journey.

Speaking to their business loans for immigrants, they offer several loan programs. These include:

• Small Business Term Loans: These affordable and customizable business term loans can help you access the capital you need to hit the ground running. You can receive anywhere from $5,000 to $250,000. -** Truck Financing**: Looking to purchase vehicles for your small business? You can get hassle-free truck financing of anywhere from $5,000 to $250,000 for your growing fleet.
• Food Truck Financing: Food truck financing can help you purchase a ready-to-go food truck or build your own. You can receive anywhere from $5,000 to $200,000 for food truck financing from Accion Opportunity Fund.

7. WEDI Microloan Program

The WEDI Microloan Program is a very niche program. It’s only available to immigrants who live in the West Buffalo area. However, if you do happen to live there, it’s one worth considering.

WEDI’s microloans range anywhere from $500 to $20,000. They’re one of the few lenders in the area that cater to their target population, providing them with affordable, flexible funding they’d be hard-pressed to find elsewhere.

It’s a great solution if you need business loans with no revenue.

Beyond that, they offer extensive support to make it easier for immigrants to access the large amount of capital they need to grow their business. Their education and coaching resources will prove necessary as you work on scaling.

Consider looking at CDFIs they partner with to identify any other potential funding opportunities, like immigrant business grants or alternative lending solutions like a business credit builder loan, as well.

Get More Funding with FairFigure

If you need to fund your business and build business credit, FairFigure is one of the first resources to secure to bolster your small business.

Sign up for FairFigure business credit monitoring to access the FairFigure Card now!