According to the U.S. Census Bureau, fewer than 20 percent of American employer businesses are minority-owned. Yet the owners of these 1.1 million minority-owned businesses often face major challenges when it comes to securing business funding.
In fact, according to one, black entrepreneurs were three times less likely to apply for credit for fear of being denied a loan. Paper from Duke University and the UNC Kenan Institute of Private Enterprise, which found significant funding gaps between minority groups and white male business owners.
Securing grants—and minority grants in particular—is one solution that aims to help expand access to business funding for minority business owners. With grants, you don’t have to pay back the funding your business receives, nor do you have to share any part of your business with investors. However, because grants are such an attractive source of funding, you may face a lot of competition during the application process.
Here are some small business grants for minority business owners.
Featured Small Business Loans
Federal Grants for Small Business Minorities
1. Grants.gov
Grants.gov is one of the first resources you’ll want to find for business grants — both minority grants and other opportunities. The database, maintained by the Office of Management and Budget (OMB), contains information on more than 1,000 federal grants. It also includes details about eligibility requirements for each program.
To apply for a grant through the Grants.gov system, you must first set one up. Workspace account which you (and your team) use to access system applications. After completing this step, you’ll be free to search for federal grants that fit your business goals and apply for those that you believe are a good fit for you. .
2. USDA Rural Business Development Grants
The USDA Rural Business Development Grant (RBDG) is another federal resource that provides funding, technical assistance, and training to small rural businesses. Although there is no maximum grant amount, $10,000 to $500,000 is the standard RBDG award range.
To be eligible for this USDA grant, you must own a small property. Rural business That earns less than $1 million per year (gross revenue) and has 50 new employees or fewer. If you believe your business may be eligible for funding, you can visit USDA website For information on how to speak with a business program specialist in your state. The specialist can guide you through the forms and applications you will need to complete.
3. USDA Water and Waste Disposal Loan and Grant Program
The USDA program is not directly available to small businesses. However, small businesses (and even households) can benefit if a qualified applicant applies. The program, designed to help upgrade local water and waste disposal infrastructure, is open only to rural federally recognized tribes, private nonprofit organizations or state and local governments.
The assistance is offered as a loan repaid over a period of up to 40 years. The exact term length and interest rate offered depends on how critical the infrastructure need is and the average household income of the area. In some cases, USDA may offer this assistance in the form of a grant rather than a loan.
4. Small Business Innovation Research and Small Business Technology Transfer Program
If your business is developing innovative new technology through partnerships with research institutions, you may be eligible for a Small Business Innovation Research (SBIR) or Small Business Technology Transfer (STTR) program grant. These grants can be offered up to approximately $2 million.
These competitive programs do not impose any restrictions on minority status.
Private grants for small business minorities
5. Coalition to support black businesses
The Coalition to Back Black Businesses is a partnership of several brands that have come together with the goal of empowering black-owned businesses.
The coalition is providing $14 million in minority grants, resources and training over four years through 2023 aimed at helping small businesses recover from pandemic-related setbacks. The consortium includes American Express, ADP, AIG Foundation, Altice USA, Dow and S&P Global Foundation.
Selected businesses will be eligible for grants in the amount of $5,000 each fall, along with training and mentoring benefits. When the summer comes, a few initial grant recipients will receive additional $25,000 in grants through additional funding and support.
Eligible businesses Must be black-owned enterprises located in Economically distressed communities. You can apply on the Coalition website in the fall when the application process opens. The grant committee will randomly select 400 or more eligible applicants to receive cash awards and other benefits.
6. National Black MBA Association Scale Up Pitch Challenge
If you have an idea for a black-owned startup that’s scalable, you might benefit from researching the National Black MBA Association’s (NBMBAA) Scale Up Pitch Challenge. can The NBMBAA developed a contest to “Make Big Ideas Big.” The purpose of the competition is to provide eligible startups with an opportunity to connect with venture capitalists and other early stage investors.
NBMBAA judges will also select three finalists to receive cash prizes. The grand prize is a $50,000 small business grant.
When the application process is live, Eligible businesses Can make one Virtual pitch By sharing your business idea to a panel of judges. Finalists will then have the opportunity to make a live, three-minute pitch to judges explaining why their product or service should be considered for a grant.
7. Constituency grant-making Asian women
The Asian Women’s Giving Circle (AWGC) is a network that works to raise funds for projects led by Asian American women. Eligible projects must relate to arts and culture, promote social awareness of issues affecting Asian American girls, women and families, and be located in New York City.
The Grants Committee awards grants of up to $15,000 per project. But the total number of grants depends on the availability of funds. When the application process is live, you can submit yours. Application online
8. National Association for the Self Employed Growth Grants
The National Association for the Self-Employed (NASE) has awarded nearly $1 million in grants to small business members through its Growth Grants Program. Eligible small businesses can receive grants of up to $4,000 through the program — awarded on a quarterly basis.
You should Become a member Before you can apply for the Growth Grant program. After you join, you’ll have the opportunity to apply for small business grants on a quarterly basis, according to the schedule below:
- January to March
- April to June
- July to September
- October to December
The Grants Committee reviews all applications one month after the quarterly submission deadline. Recipients must demonstrate an identifiable business need, explain how they will use the grant to meet that need, and the potential for growth and success of their business if funded. Show up.
9. First Nation Development Institute Grants
Since 1993, First Nations have been offering grants to support Native American organizations and projects, totaling $51.6 million in grants as well as technical resources.
Past grant opportunities have included covid-19 response programs, support for local youth and culture, college scholarships and local youth business plan competitions. Visit the First Nations website To learn more about new grant opportunities as they become available.
Alternatives to Minority Small Business Grants
If a grant doesn’t work for your business, here are other options to consider:
- Microloans. These are small-dollar loans available through SBA partner lenders and nonprofits designed to help minority-owned businesses with small capital needs.
- CDFIs Community Development Financial Institutions are banks, nonprofits, and credit unions that receive special government funding to increase access to affordable credit in underserved communities.
- of venture capital. If you don’t mind handing over some control of your business idea, finding an angel investor can help you get the funding and advice you need.
Credit : www.forbes.com