This week reader James wrote in with the following question: "I am an enrolled member of a Federally-recognized Indian Tribe. With this, I am provided some preferential treatment, especially when it comes to bidding for various contracts. What are the best sources in your opinion I could approach for start-up funding?"

Excellent question, James. While it's true that there are resources available to minorities seeking funding, let's dispel a big one right now. There is a common misconception among minorities (and non-minorities too) that there's millions in Federal grant money available to individuals wanting to start a small business. Unfortunately, that type of funding is exceedingly limited. In your case, James, while the government may offer grant money to a tribe as a whole or to a non-profit that works with a tribal community, there's few grant opportunities for single entrepreneurs who want to start a for-profit business.

On the other hand, there are lending options for your small business. If you're seeking less than $2 million in start-up capital, the Small Business Administration (SBA) is still probably your best bet. The SBA actually has an office of Native American Affairs, which you can check out here. One important point: even if you are seeking a SBA loan, you still have to go through a bank. If you live in our near a tribal community, it may be worth your while to see a small business banker at a regional bank that works primarily with the Native American community. They may be able to help you find resources you weren't initially aware of.

Once you get start-up funding, there are numerous websites that can help you locate contracts that give Native Americans preferential treatment. A few great resources for all minorities are the SBA's Office of Government Contracting and the Minority Business Development Agency. Specific to Native Americans, you may want to check out the Native American Procurement Service through UIDA, the First Nations Development Institute, or the Native American Business Alliance.

Thank you for your question James, and readers, keep 'em coming!