FUNDING INFORMATION

Thank you for your interest in the NATIONAL BLACK BUSINESS SUPPORT CORPORATION (NBBSC) funding programs. We are a nonprofit corporation responsible for leading economic development efforts across minority communities.  Our mission is to strengthen economies by increasing the number of minority-owned, small or otherwise disenfranchised businesses by providing access to capital and technical assistance. Through our relationship with funding partners, we are proud to offer several loan options to qualified clients. 

1.  K-WAM FINANCIAL SOLUTIONS

  Asset-based loans allow businesses to use their assets as collateral to secure financing. When a business needs capital for operations but lacks sufficient cash flow, these loans provide a solution by leveraging existing business assets. 

Acceptable Collateral:

• Accounts receivable
• Equipment
• Inventory
• Machinery
• Patents and proprietary formulas
• Real estate

Key Benefits

Asset-based loans offer advantages for both borrowers and lenders. Interest rates are typically lower than unsecured loans because the collateral reduces the lender's risk. This security allows lenders to offer more favorable terms while providing businesses with access to needed capital.

Who Can Benefit

Asset-based lending serves companies of all sizes across various industries. These loans are suitable for businesses with quality assets seeking financing for operational needs and growth opportunities.

K-WAM Financial Solutions connects business owners with appropriate lenders, simplifying the financing process for companies facing cash flow challenges or growth opportunities.

A business line of credit provides flexible access to funds up to a predetermined limit. Unlike traditional loans, borrowers can draw funds as needed, repay them, and borrow again within the credit limit. Approval is based on factors including credit history, business financial, and cash flow.

How It Works

Once approved, businesses can access funds up to their credit limit at any time. Interest is charged only on the amount borrowed, not the entire credit line. Repayment terms are established by the lender, typically requiring minimum monthly payments with the option to pay down the balance faster.  

Advantages

Flexibility - Access funds only when needed without reapplying

Cost efficiency - Pay interest only on borrowed amounts

Cash flow management - Bridge gaps between receivables and payables

Repayment options - Make minimum payments or pay in full based on cash flow

Best Uses

Lines of credit work well for companies across all industry sectors. Common applications include seasonal businesses, inventory purchases, working capital needs, and short-term operational expenses. They provide financial flexibility without the commitment of a traditional term loan.

K-WAM Financial Solutions helps businesses identify appropriate lenders and navigate the application process for business lines of credit.

A term loan provides a lump sum of capital that is repaid in regular installments over a predetermined period. These loans are ideal for businesses needing funds for equipment purchases, facility improvements, expansion, or other significant operational investments.

Key Features

Term loans typically offer repayment periods ranging from one to 25 years, depending on the loan type and purpose. Interest rates may be fixed for the entire term or variable, fluctuating with market rates such as the Prime Rate. Many term loans require collateral or a down payment to secure the financing, particularly for longer-term arrangements.

Best Uses and Industries

Term loans work effectively across all industry sectors, including manufacturing, retail, healthcare, professional services, construction, and technology companies. They are particularly valuable for businesses needing substantial capital investments such as equipment purchases, facility expansions, technology upgrades, or real estate acquisitions.

Requirements Business:

• Established operating history (typically 2+ years)
• Demonstrated profitability and positive cash flow
• Strong business credit profile
• Detailed financial statements and tax returns

Requirements Individual:

• A personal credit score is typically 650 or higher
• Personal guarantee from business owners
• Sufficient personal income to support loan obligations
• Personal financial statements may be required

K-WAM Financial Solutions helps businesses evaluate term loan options and connect with appropriate lenders based on their specific financing needs and qualifications.

A merchant cash advance (MCA) provides immediate working capital based on your future credit card sales. This financing solution works for retail stores, restaurants, service providers, and businesses that regularly process card payments.

Unlike traditional loans that rely on credit scores, MCAs evaluate your business based on actual credit card processing history and daily sales volume.

How It Works

Lenders examine your credit card transactions, debit card sales, and electronic payment processing to assess your real cash flow patterns. They review your processing statements to determine funding amounts and set repayment terms based on actual sales performance.

Who Benefits Most

• Businesses processing $5,000+ monthly in credit card transactions
• Companies with credit challenges but steady card processing revenue
• Fast-growing businesses needing quick capital without traditional loan delays
• Seasonal businesses requiring flexible repayment that adjusts with revenue
• Newer businesses lacking credit history for traditional bank financing

Key Advantages

• Speed: Funding available within 1-3 business days
• Flexibility: Repayment adjusts based on daily sales
• Accessibility: Approval based on sales performance, not just credit scores
• Automatic adjustment: Payments decrease during slow periods
• Simple process: Minimal paperwork compared to traditional loans

Starting a business can make your biggest dreams come true. When individuals and business owners need money to start or grow a company finding a the right investor can make all the difference. An investor is simply a person, group, or company that gives money to a business that's trying to make a profit, hoping to get even more money back later.

There are two main types of investors. Some investors like to be hands-on—they want to help make important decisions and might even help buy equipment or give advice on how to run things. Other investors prefer to stay in the background—they just provide the money and let you run your business however you want. Figuring out which type works best for you is one of the biggest choices you'll make as a business owner.

Types of Investors

There are several different kinds of investors out there. Let's look at three main types: angel investors, venture capitalists, and private equity investors.

Angel Investors

Angel investors are successful businesspeople who use their own money to invest in startups and early-stage companies. They typically invest $25,000 to $500,000 and offer business advice and connections beyond just funding. Angels are willing to take bigger risks than banks and provide more flexible terms, but they can be hard to find since they don't advertise publicly.

Venture Capitalists

Venture capitalists (VCs) are professional investment firms that manage pooled money from institutions and wealthy individuals. They invest $1 million to $50 million in high-growth companies, especially technology and innovative businesses. VCs provide substantial capital and expertise but expect rapid growth and usually want significant ownership and control in business decisions.

Private Equity Investors

Private equity firms invest in established, profitable businesses with at least $1-5 million in annual revenue. They focus on mature companies needing expansion capital and often buy majority control to improve operations over 3-7 years before selling. Private equity provides resources for major growth but requires giving up significant business control.

K-WAM Financial Solutions has relationships with all three types of investors and can help match your business with the right funding source based on your company's size, growth stage, and capital needs.

The Small Business Administration (SBA) backs loan programs to help both startup and existing businesses access funding. The SBA sets lending criteria and guarantees a portion of the loan, reducing risk for lenders and making capital more available to small businesses.

SBA 7(a) Loans

Purpose: General business financing with maximum flexibility

Best for: Working capital, equipment purchases, business expansion, refinancing debt, and startup costs:

• Loan amounts: $500 to $5 million
• Terms: 7-25 years depending on use
• Down payment: Varies by lender and loan amount
• Interest rates: Variable or fixed rates available

Key advantages:

• Most flexible SBA loan program
• Can be used for almost any business purpose
• Available to startups and established businesses Lower down payment requirements than conventional loans

SBA 504 Loans

Purpose: Real estate and fixed asset financing only

Best for: Purchasing land, buildings, or major equipment; construction projects; building improvements:

• Loan amounts: $125,000 to $5.5 million
• Terms: 10 or 20 years
• Down payment: 10% minimum from borrower
• Interest rates: Fixed rates
• Financing structure:
• Borrower provides 10% down payment
• SBA provides 40% of funding
• Traditional lender (bank/credit union) provides remaining 50%

Key restrictions:

• Can only be used for fixed assets
• Cannot be used for working capital or inventory
• Requires owner-occupied real estate (business must occupy at least 51%)
• SBA Loan Requirements General eligibility:
• Business must be located in the United States or territories
• Must qualify as a small business under SBA size standards
• Business owner must have invested their own time and money
• Must demonstrate ability to repay the loan
• Application process typically requires:
• Detailed business plan
• Financial statements
• Tax returns
• Collateral documentation
• Personal financial information

K-WAM Financial Solutions helps business owners navigate SBA loan applications and requirements. We can guide you through the process and help determine which SBA program

2.  DAVID ALLEN CORPORATION (DAC)

Imagine the possibilities when you have the right financial support at your fingertips. With funding from DAC, you can take your business to the next level. Enabling you to focus on what truly matters—growing your business.

Our funding can be utilized for a wide range of purposes, including:

• Grow Your Business
• Purchase inventory
• Upgrade Equipment
• Expand or renovate
• Hire Employees
• Pay Down Operational Costs

We'll Find You the Best Funding Offer - Guaranteed!  

• Get Matched with the Top 20+ Business Funders for the Best Approval Offers.
• Fuel your Business Growth with Quick, Easy Funding From $10K to $2 Million.
• Approval Amount is generally 1-2x current monthly revenue.
• Funding Choices:   Business Funding; Preferred Funding; Instant Micro Funding; Line of Credit; Payment Processing