Minority grants for smaller businesses are an important method to help level the playing field running a business. Startup capital is a resource that has been made scarce to marginalized communities. Over 13 years after the financial crisis of 2008, banks still aren’t lending to those who could perform the most with the cash. That’s where minority small company grants come in.
Minority business grants are not simple to obtain, however they are available and could be an invaluable source of funding for those who receive them. We decided to compile a summary of the very best business grants and grant-related helpful information on minority-owned businesses to help you learn how to obtain a minority small business grant.
1) Opportunity Grants
- Submission Dates: The grant application window for 2022 opens on January 3, 2022.
- Entry Requirements: This year’s grant is specifically for Asian and Pacific Islanders (AAPI) who're American citizens and own a restaurant or other foodservice business.
- Website: https://www.merchantmaverick.com/grant-application-page/
In 2022, awarded four $10,000 minority small company grants to some exceptional Black, female entrepreneurs as part of our Opportunity Grants Program. In 2022, will give a total of $100K to Americans of Asian and Pacific Island descent. Specifically, this year’s Opportunity Grants of $10K each will be likely to ten different AAPI-owned restaurants.
If you're an American citizen who's additionally a person in the AAPI community and also you own a restaurant, food cart, kiosk, supermarket, bakery, cafe, or other foodservice business, we encourage you to apply as soon as the application window opens on January 3, 2022. We'll only be accepting 5,000 applications as a whole, consider getting yours in as quickly as possible!
2) The nation's Association For The Self-Employed Growth Grants
- Submission Dates: Growth Grant applications could be submitted year-round. Applications received in January through March will be reviewed in April. Applications received in April through June will be reviewed in July. Applications received in July through September will be reviewed in October. Applications received in October through December will be reviewed in January of the following year.
- Entry Requirements: Applications are open to people in the NASE which are up to date. You must also demonstrate a specific demand for grant, give a detailed explanation of methods grant funds will be used, show the way the grant will improve business growth and success, and provide up documentation to aid your request.
- Website: https://www.nase.org/become-a-member/member-benefits/business-resources/growth-grants
The National Association for that Self Employed (NASE) is a nonprofit trade association that provides grants and offers educational helpful information on small businesses and entrepreneurs. Its Growth Grants Program lets small businesses make an application for grant financing for a particular small company need.
These grants count as much as $4,000 each. While you won’t hit the funding mother lode with the NASE, it’s an excellent resource for minority business owners with a specific, defined funding need. You’ll need to join the NASE to apply for a grant, and you’ll have to explain at length how you’ll use the funds and how this funding will bolster your business operations. Annual membership costs $120/year, or you can opt for a monthly membership starting at $11.95/month.
3) FedEx Small Business Grant Contest
- Submission Dates: The submission date for the 2022 contest has yet to be announced. However, the submission period typically opens in February and is open for one month. Interested applicants can sign up for FedEx emails to receive updates.
- Entry Requirements: Applicants should be a minimum of 18 years of age. All applicants must operate a US-based for-profit small business with 50 or fewer employees and fewer than $5 million in annual sales revenue. All applicants must also have shipped or plan to ship within the next Twelve months in their business. Nonprofits, resellers, franchises, and independent consultants are ineligible to apply.
- Website: https://www.fedex.com/en-us/small-business/grant-contest.html
The FedEx Small company Grant Contest is really a nationwide competition held annually to award grants by means of cash and prizes (for example credits for FedEx services) to small business owners and entrepreneurs. It’s not especially for minority business owners, but many past winners and finalists have indeed been minority business people. The total amount awarded to contest winners and the quantity of grant recipients varies year-to-year. The above facts are current as of the 2022 competition, and also the 2022 competition details is going to be unveiled when the next round is announced at the start of 2012.
In 2022, the very best prize would be a $50,000 business grant, plus $7,500 in FedEx Office print services. Smaller prizes can also be found. For the 2022 contest, there were as many as 12 winners from the FedEx Small company grant.
4) National Black MBA Association Scale-Up Pitch Challenge
- Submission Dates: Submission dates for that 2022 competition haven't been announced yet. In 2022, the submission deadline was July 26.
- Entry Requirements: Applicants should be US residents who are at least 18 years old. All ideas submitted must be the initial work from the applicant. All applicants must disclose any funding previously received. The company founder must be Black or of African descent and also have the same stake in the business. You or at best one team member should be a member of the National Black MBA Association.
- Website: https://nbmbaa.org/scale-up-pitch-challenge/
Since 2022, the National Black MBA Association (NBMBAA) has recognized scalable startups and provided grants for black-owned businesses through its Scale-Up Pitch Challenge. This competition gives startups an opportunity to interact with investors and vc's. Additionally, winners might be awarded prizes from $1,000 up to $50,000 for his or her pitches.
Interested applicants can submit their pitch along with a Powerpoint presentation. The top ten finalists will be invited to pitch their suggestions to a group of experts. The top three finalists will compete in the annual NBMBAA Conference & Career Fair for a shot at winning a $50,000 cash prize, with additional prizes for 2nd place ($10,000) and 3rd place ($7,500), in addition to a People’s Choice Award ($1,000).
5) Sephora Accelerate
- Submission Dates: Applications for that 2022 competition opened on August 25, 2022 and had closed by the time of this article’s publishing. Applications for that 2023 competition are expected to open in Summer 2022.
- Entry Requirements: All applicants must be a minimum of 18 years of age and become a BIPOC founder of an early-stage beauty brand that’s not yet distributed. Applicants should a minimum of have a sample or prototype before applying and should have a merchandise product brand, for example makeup, skincare, fragrance, hair care, and wellness.
- Website: https://sephoraaccelerate.com/
The beauty retailer Sephora is giving back to minorities. The company already signed the 15 % Pledge by committing a minimum of 15% of shelf space to black-owned businesses. Sephora goes a step further to assist aspiring entrepreneurs with grants for minorities through the Sephora Accelerate program.
If selected for the program, winners will complete a six-month program that includes two all-expense-paid trips for program events, mentoring, along with a hands-on boot camp. Winners will also receive a monetary grant and become eligible for additional funding. Sephora’s goal would be to ensure that all products developed by winners are launched in Sephora stores at the end of this program.
6) Asian Women Giving Circle Grants
- Submission Dates: The Request for Proposals is typically released each January and applications are due in March. The 2022 AWGCG grantees were announced in August 2022.
- Entry Requirements: This grant can be obtained to Asian American women-owned businesses in NewYork City. Per the organization, grants are awarded to “individual artists and community groups that bring about progressive social and political change.”
- Website: http://asianwomengivingcircle.org/apply/
Over the last 16 years, the Asian Women Giving Circle has raised and distributed over $1 million in funding to Asian American women-owned businesses in Nyc. This includes artists in theater, dancing, and film. Recipients of these grants have led to progressive social and political change through documentaries, choreography, visual arts, street festivals, and workshops.
For the 2022 grant contest, the AWGC awarded nine grants, ranging in amount from $5,000 to $12,500. The number of recipients and submission dates vary every year; information about the 2022 grant application should be released in January 2022.
7) Coalition To Back Black Businesses Fund
- Submission Dates: The submission period for 2022-2022 is currently closed. However, interest forms are required to be available again in September 2022 for the next round of rolling grants for the 2022-2023 cycle.
- Entry Requirements: Black business owners in eligible industries may apply. Eligible businesses must employ between three and 20 people. Businesses should also be seen within an economically vulnerable community and have been influenced by the coronavirus.
- Website: https://webackblackbusinesses.com/
The coronavirus hit small businesses hard in 2022, and the effects are expected to be felt for many years — particularly in economically vulnerable areas. For this reason a number of organizations, including American Express, Shopify, Stanley Black & Decker, and also the US Chamber of Commerce Foundation, joined together to form the Coalition to Back Black Businesses.
This initiative is placed to operate through 2023 and offers Black business people influenced by the coronavirus with free business grants for minorities. Grants are worth $5,000 and are distributed on the rolling basis to hundreds of eligible smaller businesses each fall, and a limited number business people will get $25,000 enhancement grants the next summer. In the last round of funding, a total of 25 $25,000 grantees were selected, but the quantity of grants may fluctuate slightly every year based on available funding.
Through the Coalition’s partnership with Shopify, Black business people can also receive 4 months free on Shopify to begin and boost their business online (a deal that's outside of the grant contest).
8) SoGal Foundation Black Founder Startup Grant
- Submission Dates: Grant applications for 2022 are presently open. This is a continuous rolling grant program with grants awarded after every month.
- Entry Requirements: Black ladies and Black nonbinary entrepreneurs qualify for the program. Multiracial Black applicants could also apply. All entrants must have a registered business, plan to seek investor financing in the future, and have a scalable business or idea.
- Website: https://www.iamsogal.com/black-founder-startup-grant/
The SoGal Foundation has partnered with businesses such as Winky Lux and Bluemercury to launch the Black Founder Startup Grant. The program is designed to provide Black ladies and Black nonbinary entrepreneurs with grants to start or further their businesses.
This program provides grants of $5,000 and $10,000 to pick entrants. Additionally, winners also receive lifetime access to the SoGal Foundation and SoGal Ventures teams. Applications are accepted on the rolling basis, and awards are given at the end of every month.
9) Rebuild The Block Grants
- Submission Dates: The grant runs continuously in 3-month cycles. Rebuild The Block only accepts 90 submissions per cycle before closing the applying, so it’s vital that you apply when the next application round opens.
- Entry Requirements: Applicants must be a Black-owned small business that was influenced by COVID-19 and/or looting. Businesses should have been launched on or before January 1, 2022. All applicants should be able to verify the legitimacy from the business and any financial losses incurred.
- Website: https://www.rebuildtheblock.org/home
According to the mission statement, Rebuild the Block “bridges black business people within our communities with reputable resources to infiltrate generational wealth and capital in the black community.” One of the ways that Rebuild the Block helps is by using its Small Business Relief Fund.
Through this program, Black-owned small businesses affected by the coronavirus or by looting/civil unrest will get monetary grants. As much as 15 winners are selected each 3-month cycle. The organization doesn't specify the value of their grants, however it includes a fundraising goal of $1 million to help Black-owned businesses. Freelancers and creative entrepreneurs are also permitted to apply for the program.
10) First Nations Development Institute Grants
- Submission Dates: First Nations offers various grants to Native American organizations. Applications for that First Nations Native Farmer and Rancher Apprenticeship should be submitted by December 22, 2022 at 5 pm MDT.
- Entry Requirements: The current grant opportunity is open to Native American Beginning Farmer and Ranchers (BFRs) located in Minnesota, North Dakota, South Dakota, Wisconsin, Arizona, or New Mexico. Applicants should be prepared to invest in a 30-month apprenticeship.
- Website: https://www.firstnations.org/grantmaking/#grant-opps
First Nations began in 1980 and began its national grant enter in 1993. Through mid-year 2022, the nonprofit organization has awarded a lot more than $46 million in grants to Native American projects and organizations across the United States.
A First Nations grant opportunity that is currently open to Native American business people may be the First Nations Native Farmer and Rancher Apprenticeship. Through this grant, a total of 30 Native American beginning farmers and ranchers will get as much as $7,500 over the course of 30 months, in addition to individualized technical assistance to expand their business capacity and strengthen land management strategies.
If you have an Indigenous-owned business but don't qualify for the BFR grant, look into the First Nations website often, because they release new grant opportunities throughout the year.
Government Grant Resources For Minorities
Like all grants, federal government grants are caused by federal, state, or municipality funds and are not expected to get paid back. They are given right out the government to the recipient with no intermediary.
Grants.gov
Grants.gov doesn’t originate grants; rather, it’s a searchable database of each and every grant program from across all 26 grant-making agencies from the federal government. Regardless of the clunky website, it’s an invaluable resource. There's also a Grants.gov app on the App Store and Google Play.
To make an application for federal grants, you have to do the following:
- Get a DUNS number from Dun & Bradstreet
- Register to do business with the federal government through its System Award Management website
- Create an account at Grants.gov
Most federal grant money is earmarked for institutions involved with healthcare, scientific research, education, and social services, with many grant funding likely to city governments or nonprofits instead of for-profit businesses. However, some federal grant opportunities are aimed toward minority businesses (MBEs) within those fields and possibly some other fields. As local governments often receive and redistribute federal grant money, you might also be able to find pertinent opportunities for government grants for minorities through the website of your local city government.
USDA Rural Business Development Grant
For minorities in rural areas, this grant, from the United States Department of Agriculture, is definitely an attractive prospect. Within the words of the USDA:
This program is a competitive grant designed to support targeted technical assistance, training along with other activities resulting in the development or expansion of small , emerging private businesses in rural areas that will employ 50 or fewer new employees and has less than $1 million in gross revenue.
Note this is not a grant you apply for directly from the federal government; towns, communities, state agencies, and nonprofits can qualify for the grant. Then, these entities distribute that cash because they think fit. Contact your local USDA Rural Development office to find out what’s on offer in your state.
Minority Business Development Agency
A US Department of Commerce agency, the objective of the Minority Business Development Agency (MBDA) would be to help connect minority business owners to federal contracts and other savings. The agency also has historically periodically awarded grants to minority-owned companies for particular purposes.
There are MBDA centers in lots of major cities to guide you in finding funding. From assisting you find grants and loans to providing marketing and legal assistance, the MBDA’s physical business centers are set up to offer a range of services to minority business owners and entrepreneurs. Here’s a searchable directory of these MBDA business centers.
Office Of Minority Health Grant Programs
A division from the Department of Health insurance and Human Services, work of Minority Health (OMH) offers grants to businesses whose mission is to eliminate health disparities among racial and ethnic minority populations. Monitor the OMH web site to learn about grant opportunities when they are announced.
Native American Business Development Institute (NABDI) Grant
This grant program is funded by the US Department of Indian Affairs and is meant to support Native American and Alaskan Native business owners. Currently, there isn’t a lot of information posted around the grants being offered; you can always contact work of Indian Energy and Economic Development to understand the way the program stands to benefit your business.
State Government Grants
As mentioned, federal grant cash is usually awarded to local governments and nonprofit entities, which may then redistribute eligible funds to small businesses in their region. Local governments can also use local state and city taxes to fund business grants. So make sure to search for government grants particular to minority-owned businesses in your area and state.
For example, your Maryland has not one but a number of different minority business grants. One such grant is the Small, Minority and Women-Owned Business Account — Video Lottery Terminal Fund (VLT), which utilizes proceeds from video slots to help small, minority, and women-owned businesses situated in targeted areas surrounding six Maryland casinos.
Other Business Grant Resources For Minorities
Seeking additional resources? Check out these options — from SCORE’s mentoring plan to other funding sources for the small company.
SCORE
One organization that can get you got going in the right direction in your pursuit of business funding is SCORE. It’s an SBA partner and provides mentoring services to small businesses and entrepreneurs from over 300 chapters across the nation. SCORE also provides online webinars and business courses.
Venture Capital Financing For Minority-Owned Businesses
VC funding isn't a grant per se, because the venture capitalists who invest capital in your company (this capital can also be called “seed money” or “seed funding”) receive ownership in your company in exchange for their investment. However, VC funding could be a viable source of capital for some businesses, especially tech startups. There is also a growing list of VC groups that specifically purchase minority-owned businesses. And while vc's still give most of their money to white men, there are many more VC funding opportunities for minorities than there are grants for minorities.
Here are only a few VC investors that provide seed money to minority-owned businesses:
- New Voices: “New Voices provides capital for startups, established businesses, and community-based enterprises led by women of color entrepreneurs.”
- Kapor Capital: “Kapor Capital invests in tech-driven early-stage companies committed to closing gaps of access, opportunity or outcome for low-income communities and/or communities of color in the United States. We are particularly interested in those that address gaps of disproportionate relevance to African-Americans and Latinx communities.”
- Access Latina: “Access Latina is a nonprofit accelerator that empowers Latin American women in Puerto Rico, US mainland, and Latin America by giving access capital, knowledge acquisition, and public policy. The program also provides investment resources to women-owned businesses with high-growth potential via a yearly competition in agriculture, social innovation, and STEAM industries. Although Access Latina does not invest directly, it provides capital through grants, loans, crowdfunding round with Kiva Zip, and other accelerators.”
Keep in your mind that VCs typically purchase high-growth startups which are already turning a powerful profit (e.g., $500K/year). Private investors — affluent individuals who invest their private money into startups — may invest lesser amounts at an earlier stage from the startup process.
SBA 8(a) Business Certification
While there are a small group of federal grants for minorities for small business, it does set aside a certain part of federal contracts to disadvantaged businesses, including minority-owned businesses. In case your clients are eligible for federal contracts — for example, you have a construction business or manufacture goods that government departments purchase — then it’s a good idea to get an 8(a) small disadvantaged business certification, because this status can help you get contracts.
An 8(a) small business is any company in which the owner(s) is socially and economically disadvantaged. Including any minority-owned small company where the owner is also economically disadvantaged; begin to see the specific criteria on the Small Business Administration (SBA) 8(a) Business Development Program page.
You can apply for 8(a) status through the certify.SBA.gov website. If you're a woman, you may also apply for Woman Owned Small company (WOSB) status with that same website.
Note that there are many other organizations that offer minority-owned business certifications. Other MBE certifications from reputable organizations can always offer some benefits and could assist you to be eligible for a business financing in general. However, you will need certification in the SBA or any other government agency (such as the EPA or DOT) to get preference for federal contracts.
FAQs About Minority Business Grants
How do I get a minority grant?
To obtain a minority grant, you have to meet the grant requirements, apply, and win the grant. Because all organizations have different grant requirements, be sure you satisfy the specifications before you apply.
What grants are available for minorities?
There are lots of grants available for minorities. We recommend beginning with the grants on this list. If none suit your small company, you are able to look for more grants via small business groups on social networking or in your neighborhood, grant directories, or getting the aid of librarians inside your local library.
How can I certify like a minority-owned business?
You can get certified like a minority-owned business via a various organizations, including the SBA and the NMSDC. Qualifications will vary based on where you are trying to get certified, but generally, you’ll have to prove your company is a minimum of 51% owned by a minority, be considered a US citizen, and meet other requirements.
Does the government offer business grants for minorities?
The federal government does not directly offer business grants for minority-owned businesses or startups. However, federal grant programs do provide grant funds to local governments for redistribution, which programs are sometimes geared toward minority business enterprises (MBEs) within certain fields, such as education, healthcare, and scientific research.
How do you find minority business grants locally?
The searchable grant program database at Grants.gov will help you find government-funded grant programs in your locality. Web hosting grants, free searchable grant databases are not as easy to find, so you’ll likely wish to accomplish a web-based search for “grant opportunities in [your locality]” and find out what comes up.
How do you determine if I be eligible for a a minority business grant?
Every grant program has different eligibility requirements, so you’ll need to research the qualifications essential for the grant program you’re thinking about to determine if you qualify for funding.
Business Grants For Minorities: Final Thoughts
To be sure you don’t miss the applying periods for small company minority grants in 2022 and beyond, it’s smart to subscribe to the grant organization’s list and follow their social media accounts on Instagram and Twitter. By doing this, you are able to remain on surface of minority business grants’ submission dates and discover about any changes towards the grant program.
For additional sources of funding for minority smaller businesses besides grants, take a look at our article on the various types of alternative financing available for small businesses.
