7 Minority Small Business Grants Providing Free Funding
If you’re a small business owner, you know that it’s not easy to get started or expand your venture. Funding is always an issue, and when you’re a minority-owned business, it can be extra challenging. That’s why grants are so important. They provide free funding for entrepreneurs and open them up to special concessions like tax breaks, giving them the chance to get their ventures off the ground.
There are many different grant options available, but we’ve compiled seven of the best minority small business grants in the U.S. below. So if you’re looking for some free funding, be sure to check out these grants!
Top Seven Grants for Minority-Owned Businesses
Here are seven of the top minority small business grants in the U.S. that you might want to check out in 2022. Keep in mind that the availability of these grants changes often, so be sure to check their websites or contact the organizations for the most current information.
1. The Minority Business Development Agency (MBDA) Business Center Program
The MBDA is a federal agency that promotes the growth of minority-owned businesses. They offer grants to eligible entrepreneurs through their network of business centers, where you can avail business consulting, procurement matching, and financial assistance. Eligibility requirements depend on the grant you are interested in but the most basic is that your business should be at least 51% minority-owned.
2. The National Association for the Self-Employed (NASE) Growth Grants Program
The NASE is an organization that provides resources and support for self-employed individuals through its Growth Grants Program, which offers grants of up to $4,000 to those who are starting their own businesses. It does not exclusively cater to minority applications but it is open to all. Applications are reviewed on a quarterly basis, but they award grants monthly.
3. The American Express Coalition to Back Black Businesses Program
This grant provides financial assistance and coaching to Black-owned businesses in the U.S. The program is led by founding partner American Express, with support from the ADP, AIG Foundation, Altice USA, Dow, S&P Global Foundation, Shopify, Stanley Black & Decker, and Firefli.
To qualify for this grant, applicants must meet the criteria for being a Black-owned enterprise, employ between three to 20 people regardless of employment status, be located in an economically vulnerable community (as per the Distressed Communities Index, and have been financially hit by the COVID-19 pandemic.
4. SBA 8(a) Business Development Program
The 8(a) Business Development Program is a long-standing program of the U.S. Small Business Administration (SBA) that helps small businesses owned and operated by socially and economically disadvantaged individuals to compete for government contracts. Though it’s not technically a grant, it places otherwise disadvantaged groups on a level playing field as other businesses. The program offers technical assistance and business development services as well.
5. National Black MBA Association (NBMBAA) Scale-Up Pitch Challenge
The NBMBAA offers a pitch challenge to help Black-owned businesses grow and scale. The first place winner of the challenge receives a $50,000 grant. To be eligible for this grant, you must be a Black-owned business that is in the early stages of growth (startup or expansion). You must be a member of the NBMBAA to participate, and the competition is held annually.
5. Operation HOPE Small Business Development Program
The Operation Hope Program strives to be a solution for low-wealth neighborhoods that have been overlooked by other nonprofits. The combination of business training and financial counseling along with access to small business financing options makes it invaluable in these communities, which often include minority populations experiencing poverty at higher rates than others
The 12-week course helps participants understand how they can start their own businesses, as well as maintain them financially through workshops on topics such credit scores or budgeting.
6. The National Minority Supplier Development Council (NMSDC) Business Consortium Fund
The NMSDC is an organization that works to connect certified minority-owned businesses (MBE certified) with corporate members. They offer grants to businesses that are owned by minorities and participate in programs through its Business Consortium Fund.
7. Grants.gov
Grants.gov is a website that connects entrepreneurs with grants from the federal government. There is no one size fits all list of eligibility requirements for this grant, as awards will depend on criteria set by various units, but your business must be for-profit and based in the U.S. Applications are reviewed on a rolling basis.
Frequently Asked Questions (FAQs) On Minority Small Business Grants
Have questions about grants for minority-led small ventures? Here are some of the most commonly asked questions:
What defines a minority-owned business?
A minority-owned business is a for-profit company that is at least 51% owned and controlled by one or more individuals who are members of a minority group.
What are the different types of grants for minority businesses?
There are various types of grants available for minority-owned businesses, such as grants for start-ups, grants for expansion, grants for research and development, and grants for job creation, and more. Check with your prospective grant provider for the types of businesses they support.
Are there any restrictions on how the grant can be used?
The grant can be used for a variety of purposes, such as start-up costs, marketing expenses, rent, and employee salaries. Typically, there are no restrictions but some grant providers may be specific to certain industries.
What does being MBE certified mean?
MBE certified means that your business is certified by the National Minority Supplier Development Council (NMSDC). This certification shows that your business is at least 51% owned and controlled by one or more individuals who are members of a minority group.
How can I increase my chances of getting a grant?
Your chances of getting a grant will increase if you can show that your business is in a high-growth industry, has the potential to create jobs, and has a sound business plan.
Why is it important to be a woman-owned or minority-owned small business?
There are a number of reasons why it is important to be a women-owned or minority-owned small business. First, these businesses often face unique challenges that can make it difficult to get funding and access to resources. Second, by being a women-owned or minority-owned business, you can help contribute to the growth of these industries. Finally, these businesses can play an important role in the economy by creating jobs and promoting innovation.
Getting Funding As a Minority Small Business Owner
Grants for minority-owned businesses can be a great way to get free funding for your business. There are a number of grants available, so be sure to research which ones are best suited for your business.
If you’re looking for alternative and easy-to-apply funding options, be sure to check out the fixed rate business loans offered at LendThrive. We offer a variety of financing solutions for businesses of all types and sizes, with amounts ranging from $25,000 to $150,000. This route can get you the funding you need in a much shorter timeframe.
Our team is passionate about helping minority-owned small businesses succeed. We understand the entrepreneur experience and are here to help. Contact us today to learn more about our products and services or apply now to get the money you need in as fast as 24 hours. It takes only minutes to complete the online application.
