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Many grants are available for underrepresented groups who own businesses. Learn how to take advantage of these grant programs to start or grow your venture.
Small businesses owned by underrepresented groups face unique challenges, particularly when it comes to securing capital to start or grow a business. While business loans are always an option, many small business owners prefer to start a business without a loan. Others might not qualify for loans with good repayment terms.
Small business grants for racial and ethnic minority groups can be a valuable alternative because they offer funding you don’t have to repay. Here is your guide to business grants for underrepresented groups, including the top ones to consider and alternatives to keep in mind.
Many small business grants and assistance programs for racial and ethnic minority groups exist. Finding the right one for your business, however, can be a challenge. The following grants include both prominent and lesser-known programs that may suit your needs. Each has a unique application process and requirements, so carefully review their guidelines to improve your chances of being accepted.
Grants.gov has a running list of thousands of available government grants, including business grants for racial and ethnic minority groups. The website compiles grants from dozens of government agencies, such as the U.S. Small Business Administration (SBA), the U.S. Department of Agriculture (USDA) and the U.S. Department of Commerce.
To find a grant that’s right for your business, use the Search Grants tool on the website to filter the grant list by keyword or opportunity number. Once you locate the grant you wish to apply for, select the hyperlinked opportunity number. There, you will find additional information about the specific grant, as well as any associated documentation you might need.
To apply, visit Grants.gov and register for an account. Then, you can download an application package for that grant. Prepare yourself for a lengthy and specific process.
The Minority Business Development Agency (MBDA) is a bureau of the U.S. Department of Commerce dedicated to helping businesses owned by racial and ethnic minority groups access the capital, contracts and markets they need to grow and compete.
Grant competitions and funding opportunities change regularly. Visit the MBDA Grants website for information on current opportunities. The MBDA also operates a national network of Business Centers that provide entrepreneurs from underrepresented groups with one-on-one consulting, access to financing and connections to federal contracting opportunities.
Backing the B.A.R. Grant is a collaboration between the NAACP and Bacardi; it’s intended to increase the representation of racial and ethnic minority groups in the beverage, alcohol and hospitality industries. It awards over $100,000 in acceleration grants; also, it provides education, support and solutions for Black-owned bars, restaurants, nightclubs, liquor stores and small businesses applying for a liquor license. Eligible businesses will be majority-owned by Black individuals and must either have a liquor license or currently be seeking one. Each year, the organization awards 10 grants of $10,000 apiece.
Visit Backing the B.A.R. to apply for a grant.
The NAACP Powershift Entrepreneur Grant was developed to support Black entrepreneurs and Black-owned businesses through funding opportunities and other resources. The annual grant program is offered in conjunction with partner organizations and has awarded $25,000 grants to winners along with a suite of resources to help their businesses thrive.
“We invite aspiring and established Black entrepreneurs to seize this opportunity and join us in shaping a brighter future for all,” said Yumeka Rushing, chief strategy officer at the NAACP. “The NAACP remains committed to fostering economic growth and sustainability for Black communities.”
Application windows and partner organizations vary by cycle. To learn more about current availability and to apply, visit the NAACP’s grant page.
The National Minority Supplier Development Council (NMSDC) provides a grant program known as the Business Consortium Fund, which aims to support certified minority-owned businesses. To become a certified minority-owned business with the NMSDC, business owners from underrepresented groups must own and control at least 51 percent of the business.
Business owners of racial and ethnic minority groups include entrepreneurs who are African American, Hispanic American, Native American, Asian Pacific American or Asian Indian American.
Through the NMSDC, certified minority-owned businesses can access working capital loans and grant funding through the Business Consortium Fund — an organization of suppliers and vendors associated with the NMSDC. This makes it one of the more established business grants available to entrepreneurs from underrepresented groups who are seeking both capital and a broader supplier network. To learn more, visit NMSDC.
The U.S. SBA 8(a) Business Development Program aids economically disadvantaged small business owners. It provides business development support and consultation services for management.
To qualify, the business must be 51 percent owned and controlled by an entrepreneur who is economically and socially disadvantaged. Applicants must have a personal net worth of $850,000 or less, adjusted gross income averaged over three years of $400,000 or less, and total assets of $6.5 million or less. For a more specific definition of what constitutes “economically and socially disadvantaged,” see Title 13 of the Code of Federal Regulations.
To apply for support through the SBA 8(a) Business Development Program, you must first be certified by the agency. To do so, visit SBA Certifications, create a profile and follow the steps outlined. You will receive correspondence via mail to confirm whether you were approved for certification.
Once accepted into the program, your certification will last up to nine years. However, certified businesses must complete annual reviews to remain in good standing with the program.
The Program for Investment in Micro-Entrepreneurs (PRIME) provides various grants to small businesses; it offers priority to women-owned businesses and economically and socially disadvantaged business owners. These grant opportunities include the following:
According to the SBA, the following types of organizations are eligible for a PRIME grant:
Visit the PRIME program announcement for more information.
The American Rescue Plan reauthorized and allocated $10 billion to the SSBCI. This money is distributed to and allocated by the states, territories and tribes that choose to participate.
The grants are for technical assistance, including legal, accounting and financial help. They are available to businesses owned by socially and economically disadvantaged individuals and very small businesses.
To apply, contact the SSBCI agency in your state, territory or tribe, which you can find on the Council of Development Finance Agencies website.
The USDA’s Rural Business Development Grant Program provides grants to public entities to offer training and technical support to small businesses with fewer than 50 employees and less than $1 million in gross revenue.
Unlike many other grants on this list, the USDA Rural Business Development Grant is awarded to public entities, such as towns, state agencies, nonprofits or universities. They then use the grant to support local small businesses within rural communities.
These grants can be used for a wide range of purposes, including the following:
Visit USDA’s Rural Business Development Grant Program for more information.
Entrepreneurs and small business owners from racial and ethnic minority groups can apply for the annual FedEx Small Business Grant Contest. Contest details, prize amounts and the number of winners may vary by year; visit the FedEx Small Business Grant Contest page for the most current prize and eligibility requirements.
To apply, visit the FedEx Small Business Grant Contest page. You’ll write a short profile about why you started your business, what the company does and what makes your company different; you’ll also include any social causes your business embraces and how you plan to use your grant money to improve your business. You may also include video content in the form of a one-minute YouTube video about your company and its mission.
The Amazon Black Business Accelerator is not a traditional grant program, but it does provide Black-owned businesses with valuable services for their Amazon stores that they would otherwise need to pay for out of pocket. Benefits include a $500 enrollment credit, free imaging services for up to 50 products, advertising credits and $1,000 in Buy with Prime credits.
To enroll, you must have a Professional selling account with Amazon. Also, you must have a certificate for your Black-owned business from the U.S. System for Award Management, SBA or National Minority Supplier Development Council. Educational resources are available through Amazon’s Amplify program; enrollees get a Black-owned business badge to display on product detail pages.
To apply, log in to your Amazon Professional selling account, upload your certificate and enroll in the Black Business Accelerator. Visit Amazon’s Black Business Accelerator page for more information.
The Wish Local Empowerment Program has offered grants of between $500 and $2,000 to Black-owned brick-and-mortar stores with 20 or fewer employees and annual revenue of less than $1 million. Grant recipients are required to join Wish Local, a mobile shopping app. Note that program availability and deadlines may vary, so check the program page for the most current details before applying.
To apply, visit the Wish Local Empowerment Program.
The Hawai’i FoundHer program provides grants to women business owners in Hawai’i’s local economy in the tech, fashion, health and wellness, restaurant and keiki/education sectors. To qualify, the business must be majority-owned by Native Hawaiian, Pacific Islander and/or Asian women. The program is six months long, and seven recipients will be selected.
In addition to $20,000 in grant money, founders receive $4,000 for childcare, weekly educational workshops, a national mentor network, and monthly networking and learning retreats.
Visit Hawai’i FoundHer to apply.
The Ingredients for Success Entrepreneurs Initiative is funded by Famous Amos and the National Black Chamber of Commerce. It involves a pitch competition with three $50,000 grants awarded to Black small business owners. To qualify, businesses must be at least 90 percent Black-owned and headquartered in the U.S. (not including U.S. territories). Priority is given to businesses operating for five years or less.
Visit the Ingredients for Success Entrepreneurs Initiative to learn more and apply.
BGV Pitch gives Black female business owners the opportunity to compete for one of three grants by giving their best three-minute pitch to a live audience. First place wins $15,000, second wins $10,000 and third place wins $5,000. The funds are crowdsourced from the Raisify.co audience. In addition, winners get membership in the BGV Connect Incubator, direct funding, access to a network of business owners and investors, free access to Canva for one year and discounts on HubSpot.
Pitch competitions are city-specific — Austin, Chicago, New York and Los Angeles — and have varying deadlines. Businesses must be located in the city where they apply. Apply to pitch on the BGV Pitch page.
Freed Fellowship Grants are awarded monthly to underrepresented and overlooked small business owners. Grant recipients become Freed Fellows, and one Fellow is selected at the end of the year for a $2,500 grant.
While any micro or small business owner in the U.S. is eligible, women, racial and ethnic minority groups, and others who are considered underrepresented or overlooked are given priority. In addition to the grant money, recipients get a free strategy call with business experts, a one-year membership to the Freed Studio online mentorship community and a feature in the Freed Stories podcast.
Visit Freed Fellowship to apply — there’s a $19 application fee.
The Feed the Soul Foundation’s Restaurant Business Development Grant Program awards $15,000 to marginalized professionals in the culinary industry. Funding is provided by corporations. In addition to grant money, the award includes two months of small business financial education and consulting. Also included are one month of marketing and advertising training for culinary businesses and three months of business development consulting.
Eligible businesses include restaurants, food trucks, bakeries, bars, lounges, pop-up food stands and ghost kitchens. Businesses must be at least 51 percent owned by a person or people who identify as marginalized, and it must be located in the U.S. or Puerto Rico. In addition, applicants must be in operation for at least 24 consecutive months before applying and have more than four employees.
Visit Feed the Soul to apply.
America’s Top 100 Small Businesses program, supported by the U.S. Chamber of Commerce, recognizes outstanding small businesses across the country and awards $25,000 to America’s Top Small Business of the Year. Applicants can enter in up to five categories from the following list:
In addition to the grant money, all 100 businesses selected get brand exposure, access to top business experts and thought leaders, and VIP perks. Visit CO-100 to apply.
A grant is a funding source recipients don’t have to repay. They typically have lengthy and specific application processes and eligibility requirements. Since completing grant applications can be complicated, many business owners hire professional grant writers to help. The organization issuing the grant will select recipients from numerous applications.
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Grant funding can help businesses avoid or reduce reliance on business loans or other funding sources, such as venture capital. Even the best business loans charge interest and must be repaid. However, while grants are often considered free money, they require a significant investment of time and effort — plus, the funding is never guaranteed.
Government grant programs are available for economic development; private and nonprofit organizations also create grant programs.
Small business grants for racial and ethnic minority groups are funding programs designed to help businesses owned by underrepresented groups grow and thrive. “Minority business grants are funding programs specifically created to support entrepreneurs from marginalized communities, such as Black, Latino, Indigenous and other people of color — those who often face systemic barriers to accessing capital,” said Dr. Sheila Hill, executive director and co-founder of Think Big.
Businesses owned by racial and ethnic minority groups come in numerous varieties, and grants are available for many of them. For example, there are dedicated business grants for Black women entrepreneurs, Hispanic business owners, Indigenous entrepreneurs and business owners with disabilities. Some programs also focus specifically on women-owned businesses more broadly.
However, keep in mind that these grants do have some stipulations. “A major misconception is that grants are simply ‘free money’ with no strings attached,” Hill said. “While repayment isn’t required, many grants come with conditions — including application requirements, documentation and reporting.”
If you’re unable to secure a small business grant for underrepresented groups or simply need additional capital, the following alternatives are worth exploring:
Sammi Caramela and Jennifer Dublino contributed to the reporting and writing in this article. Source interviews were conducted for a previous version of this article.
