18 Small Business Grants for Minorities

What is a grant?

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.

What is a minority small business grant?

A minority small business grant is specifically designed to help minority-owned small businesses grow and succeed. Minority-owned businesses come in numerous varieties, and grants are available for many of them. For example, there are many business grants for Black women entrepreneurs and Hispanic business owners. Other grants are available for women-owned businesses, businesses owned by Indigenous people and entrepreneurs with disabilities.

18 minority business grants

Many minority small business grants and assistance programs exist. However, finding the right one for your business can be challenging. The following grants include 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.

1. Grants.gov

Grants.gov has a running list of more than 1,000 available government grants, including minority business grants. The website compiles grants from over two dozen 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.

2. The Minority Business Development Agency

The Minority Business Development Agency (MBDA) is operated by the U.S. Department of Commerce; it’s dedicated to helping minority-owned businesses access the resources they need to grow and succeed.

Grant competitions change regularly. Visit the MBDA Grants website for information on current opportunities. The MBDA’s grant budget was increased under the American Rescue Plan Act, providing an additional $100 million for technical support of underserved entrepreneurs.

3. Backing the B.A.R. Grant

Backing the B.A.R. Grant is a collaboration between the NAACP and Bacardi; it’s intended to increase the representation of minorities 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.

4. Merchant Maverick Opportunity Grants Program

The Merchant Maverick Opportunity Grants Program provides funding to business owners of Native American or Alaskan Native descent living in the U.S. The program aims to help Native American- or Alaskan Native-owned businesses thrive despite the lack of geographic access to banks in tribal areas.

Two grant recipients are chosen each year to receive a grant of $10,000 each. Visit the Merchant Maverick Opportunity Grants Program to apply.

5. The National Minority Supplier Development Council’s Business Consortium Fund

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, minority business owners must own and control at least 51 percent of the business.

Minority business owners 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; this is an organization of suppliers and vendors associated with the NMSDC. To learn more, visit NMSDC.

6. The U.S. SBA 8(a) Business Development Program

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 and has a net worth of $250,000 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 Certify, 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.

7. The U.S. SBA Program for Investment in Micro-Entrepreneurs

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:

• Technical assistance grant: This grant offers training and technical assistance to micro-entrepreneurs.
• Capacity-building grant: This grant extends training and scaling support to micro-entrepreneurs and offers assistance for expanding services.
• Research and development grant: This grant assists research and development efforts and the establishment of best practices for technical development in micro-enterprises.
• Discretionary grant: The U.S. SBA determines recipients of discretionary grants based on whether organizations are consistent with PRIME’s goals.

According to the SBA, the following types of organizations are eligible for a PRIME grant:

• A micro-enterprise development organization or program with a demonstrated record of delivering micro-enterprise services to disadvantaged micro-entrepreneurs
• An intermediary, such as a private, nonprofit entity serving micro-enterprise development organizations
• A micro-enterprise development organization or program that is accountable to a local community, working with a state or local government or an Indian tribe
• An Indian tribe acting on its own if it can certify that no private organization or program exists within its jurisdiction

Visit the PRIME 2024 announcement for more information.

8. State Small Business Credit Initiative (SSBCI) Technical Assistance

The American Rescue Plan reauthorized and allocated $200 million to the SSBCI. This money is sent 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.

9. The USDA Rural Business Enterprise Grant Program

The USDA’s Rural Business Enterprise Grant Program provides grants to public entities to offer training and technical support to small businesses with fewer than 50 new workers and less than $1 million in gross revenue.

Unlike many other grants on this list, the USDA Rural Business Enterprise 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:

• Training and technical assistance, such as project planning, business counseling and training, market research, feasibility studies, professional or technical reports, and producer service improvements
• Acquisition or development of land, easements or rights of way; construction, conversion and renovation of buildings; plants, machinery, equipment, access for streets and roads; parking areas and utilities
• Pollution control and abatement
• The capitalization of revolving loan funds, including funds intended for startups and working capital
• Distance adult learning for job training and advancement
• Rural transportation improvement
• Community economic development
• Technology-based economic development
• Feasibility studies and business plans
• Leadership and entrepreneur training
• Rural business incubators
• Long-term business strategic planning

Visit USDA’s Rural Business Enterprise Grant Program for more information.

10. FedEx Small Business Grant Contest

Minority entrepreneurs and small business owners can apply for the annual FedEx Small Business Grant Contest, in which 12 businesses can win up to $50,000 each.

• The grand prize is $50,000, plus $7,500 in FedEx printing services.
• The second-place prize is $30,000, plus $5,000 in FedEx printing services.
• There are 10 third-place prizes of $15,000, plus $1,000 in FedEx printing services.

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.

11. Amazon Black Business Accelerator

The Amazon Black Business Accelerator is not exactly a grant program. However, it does offer most Black-owned businesses valuable services for their Amazon stores that they would otherwise have to pay for. These 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.

12. Wish Local Empowerment Program

The Wish Local Empowerment Program gives 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. About 4,000 grants are given each year.

To apply, visit the Wish Local Empowerment Program.

13. Hawai’i FoundHer

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.

14. Ingredients for Success Entrepreneurs Initiative

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.

15. BGV Pitch

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.

16. Freed Fellowship Grant

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, minorities, 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.

17. Feed the Soul Foundation’s Restaurant Business Development Grant Program

The Feed the Soul Foundation’s Restaurant Business Development Grant Program awards $10,000 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.

18. America’s Top 100 Small Businesses

This grant, funded by the U.S. Chamber of Commerce, awards $2,000 to 10 businesses and $25,000 to America’s Top Small Business of the Year. Applicants can enter in up to five categories from the following list:

• Growth accelerators
• Micro-business leaders
• Customer champions
• Digital innovators
• The disruptors
• Community champions
• Champions of adaptability
• Global stars
• Enduring businesses
• Culture champions

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.

Alternatives to small business grants

If you are unable to get a small business grant or need more funding, consider the following grant alternatives:

• SBA microloans: The Small Business Administration backs loans up to $50,000 for small businesses. The average SBA microloan is around $13,000. They are usually administered by nonprofit intermediary lenders, who often provide management and technical assistance. Read the SBA’s microloans information online.
• Business credit cards: A business credit card is an immediate, although expensive, source of small business funding. Be careful and use business credit cards wisely to avoid excessive interest payments.
• Business loans: Businesses and owners with good credit may qualify for a business loan. There are different types of business loans — choose one that is right for you.
• Crowdfunding: You may be able to get the capital you need for your business through a crowdfunding site. Some sites raise money that must be repaid, while others help you gather individual grants or investments.
• Angel investors or venture capitalists: You can get the capital you need for your business by taking on an angel investor or venture capitalist as an equity partner.
• Friends and family: If you have friends or family with money to lend or invest, you can pitch your business idea to them to get some working capital.

Finding the right grant for you

Numerous grants are available from a wide range of organizations, including government agencies, private businesses and nonprofits. The first challenge is finding the right grant for your venture’s needs.

Once you’ve identified grant opportunities suitable for your business’s needs, ensure you’re eligible and then diligently complete the application process according to the grantor’s guidelines.

Grants are an excellent way to access funding without a repayment obligation. If you qualify for small business grants, you could potentially launch or grow your business without taking on unnecessary debt.

Jennifer Dublino contributed to this article.