Merrill Lynch Puts its Money Behind Minority Entrepreneurs

Key words for this post:
Business plans for minorities
Business plans for angel investors

Merrill Lynch, the esteemed financial services giant, has sat up and taken notice of minority entrepreneurs. It has, in fact, hired 200 financial advisors whose sole purpose is to reach this burgeoning market. And for good reason.

According to the U.S. Census, minorities are starting business at three times the rate of Caucasian entrepreneurs. Angel investors and venture capital are all taking notice. Merrill Lynch is just one of the first companies to actually do something about it. There are growing minority-owned companies that need 401(k) plans, investment plans, insurance plans, cafeteria plans, college savings programs and trust plans. Merrill Lynch intends to be there.

Transforming once overlooked and underserved communities into reliable sources of revenue requires innovative approaches and products and a fair amount of outreach and education. In California, Merrill Lynch has targeted minority and immigrant entrepreneurs, offering $10 million worth of small-business advice and financial planning, plus $490 million in loans through its 9-year-old California Partnership for Economic Achievement.

One of the most amazing things that Merrill Lynch is doing is stepping away from standard FICO scores. They look to rental history and utility payments in determining the credit-worthiness of their minority customers.

This is not a quick sell program. Merrill Lynch is looking several years into the future to reap the benefits of what it is doing now.