Immigrant-led businesses make a huge contribution to the US economy.
Much of the economic growth in the United States is due to the work of immigrants. Although the majority of immigrants are employees, there is also a great economic boost from self-employed workers and those who have their own businesses. In 2019, immigrant entrepreneurs represented 21.7% of business owners in the United States, despite representing only 13.6% of the population and 17.1% of the workforce in the country.
Starting your own business in the United States is complicated even for citizens, therefore, immigrants have fewer resources and tools to achieve it. For example, to obtain a loan, immigrants who do not have a Social Security Number (SSN), which is generally one of the main requirements demanded by banks and other financial organizations.
However, although they are more limited, there are loan options for immigrants who have a Personal Taxpayer Identification Number (ITIN). For example:
- Short-term loans, less than 18 months or even less than a year in some cases, may be ideal for entrepreneurs with less experience, however, high interest rates can affect the finances of new companies.
- Loans for equipment and tools are an interesting option for businesses such as workshops of various types, restaurants, beauty salons, manufacturers, among others. These types of loans require an equipment quote, credit history and other documents related to the business.
- There are other types of options, although they are not identified as a loan, the merchant cash advance, is a type of financing that financial companies offer to businesses. This scheme provides cash to businesses in exchange for percentages of sales with bank cards and additional fees. Unlike a loan, it is not necessary to have credit score high to access this financing.
Finally, it is necessary to identify the requirements for each type of loan or financing, which also vary in each company or bank that offers loans. Some lenders require visas such as TN, E, J-1, H1-B, among others. Before requesting a loan, remember to take into account the annual interest rates and the type of payment.
