How to Apply For Minority Small Business Grants 2022 – Comprehensive List.
Minority Small Business Grants: Discover a wide range of Minority Small Business Grants to finance working capital needs. You can now apply for minority small business grant, describe your business and why it will be successful. Minority Small Business Grants grants are usually awarded grants to government agencies that further a government or other community initiative.
What is a Minority Small Business Grant?
Small Business Grants are a policy where the government provides money to new start-up businesses, helping them to not fail during their early years.
They do not inform many people about the grants for small businesses. So we dedicate this article to showing you the different funding opportunities, such as diverse small business grants.
But in all of this, often, I have heard entrepreneurs mistaking loans as grants and grants as loans.
So before we proceed, let us quickly clear the differences between grants and loans.
Minority small-business grant is seed money for a business startup or project, usually offered by government agencies, nonprofits, or certain businesses.
Small businesses and startups can find it difficult to fund their operations, and loans, while helpful; can create additional burdens on cash flow.
As you read below, you will learn more about what small-business grants are, and how they operate.
Small businesses are also privately owned corporations, partnerships, or sole proprietorships which have fewer employees and/or less annual revenue than a regular-sized business or corporation.
They define businesses as “small” to apply for government support and qualify for preferential tax policy varies depending on the country and industry.
Small businesses in many countries include service or retail operations such as convenience stores, small grocery stores, bakeries or delicatessens, hairdressers, carpenters, electricians, restaurants, guesthouses, photographers, tiny-scale manufacturing, and Internet-related businesses.
The federal government rarely awards grants to start or expand a small business and their programs are usually aimed at nonprofits or other government agencies that otherwise struggle to generate funding.
Grants can be formed to target businesses based on a variety of factors, including minority-owned businesses, specific for-profit businesses and non-profit organisations, veteran-owned businesses, grants for women, and more.
Last, minority small business grants are often given for a particular purpose, which could be to cushion the effect of unemployment and youth restiveness or encourage innovation, production, and industrialization.
Grants are often designed to serve a social purpose to a community.
However, the culture of receiving grants can also harm the same community it serves, especially when the entrepreneurial drive solely depends on grants and not on innovations.
Who is Eligible for Minority Small Business Grants?
To be eligible for a minority small business grant, they must legally accept one to work in the country you are applying from, which must be African.
1 You must reside Legally in any of the 54 African countries and have your business stationed in any of them.
2 Your business must not be older than 3 years.
How Do I Qualify for a Minority Small Business Grant?
Please note that the more reliable the source of the grant, the fiercer the competition, and the more difficult it would be to access it.
Some applications will vary based on what’s required.
For example, a local government grant will probably require an explanation of how your business’s growth and development will benefit local commerce directly,
Therefore, it is much easier to win a business grant awarded by a local NGO than it is to win one awarded by the Federal government grant or even one that an international organisation established.
Although grant money is “free,” you can spend a lot of time looking for and fulfilling grant requirements time that could be invested in growing your business.
Worse, you might get scammed and lose money. Before you do that, take these three steps to see if getting a grant is right for you.
1. Put Together a Business Plan
Before applying for any money, you’ve got to describe your business and why it will be successful. Be very clear on four things:
➣ What is your product or service? Is it something the market truly needs, or just something that you’re good at and enjoy?
➣ Who is your target market? if you answer “everyone,” then you haven’t thought it through. You’ve got to be more specific.
➣ Who is your competition? How is your target market currently getting its needs met?
➣ Most important: What are you providing that no one else is?
Answering these questions will help you to create a competitive advantage.
2: Become Familiar With Grant Writing
If you want to apply for small-business grants, first become familiar with the process.
It’s usually quite detailed and time-consuming, and there is no guarantee if you will be selected.
Understanding what’s involved in the application process will help you decide whether it is worth it.
3: See What Grants are Available
Review the list of funding sources for your state. Go to the Access Financing Wizard and check out what is available in your area to fill out your purpose and type of industry.
It helps your chances if you are a woman, minority, veteran, or Native American.
It will also help if you’re in a rural community.
Here are other few common details you may need to provide when applying for a business grant:
➣ Time in business
➣ Number of employees
➣ Monthly revenue
➣ How the funds will be used
➣ Your business’s “elevator pitch”
➣ Your Employer Identification Number (EIN)
➣ Your social media handles (LinkedIn, Facebook, Twitter, Instagram, etc.)
➣ A photo of you (and, if applicable, your partners or offices).
Tip: A professional photo can go a long way, especially for companies looking to use your image on their site when announcing awards.
➣ A business plan. You should already have one, but if you don’t, talking to an SBDC adviser or your accountant can help you figure out the numbers, projections, and statistics that reflect the current health of your business.
Who Qualifies for a Minority-Owned Business?
If you are a minority business owner, one step you can take to expand your business is to become officially certified.
Corporations, the federal government, and state agencies all want to do business with minority-owned companies.
Becoming certified as a minority-owned business allows you to access certain government and private-sector programs that can help support your business growth and expansion.
In the U.S., a minority business enterprise is defined as a company that is at least 51% owned and operated by an individual that is at least 25% African American, Asian, Hispanic, or Native American.
If the company is publicly traded, then the stock must be at least 51% minority-owned as well.
For a business to be considered minority-owned, a minority individual must own at least 51% of a business or the stock.
The minority individual or group must also control the daily operations and management of this business.
We consider a minority individual a U.S. citizen documented with at least 25% of minority origin (Asian-Indian, Asian-Pacific, Black, Hispanic, or Native American).
Read Also:
- Categorical Grants
- United Nations Grants, Funding and Development Programmes
- World Bank Grant | Win 3-10 Million Cash in Prize.
- Federal Government Loans /Grants in Nigeria
How to Apply for a Minority Business Grant
Are you one step closer to applying for a minority small business grant? If yes, then the following might be helpful as you proceed to the application process:
1. Get Certified
One of the first steps you can take to apply for a minority small business grant is to get certified as a minority business.
The Minority Business Enterprise, or MBE, offers different certifications for minority businesses.
While there are other certification programs available, the MBE is one of the largest in the nation.
2. Gather Documentation
After researching the different options and finding the certification that fits best for you, it’s a straightforward process to become certified.
You fill out an application and submit it, along with supporting documents; keep in mind that the number of documents required can vary from other grants.
You’ll want to make sure it completely prepared you when you begin the application process because the documents you will need to submit typically include—but are not limited to:
➣ Commercial tax return (past three years)
➣ Financial statements that correspond to those tax returns
➣ List of debts, including loans, lines of credits, leases, promissory notes, and others
➣ Resumes of all key personnel, including owners and directors
➣ Proof of citizenship or legal residency
➣ Partnership documents
3. Have a Business Plan
It is also important to have a business plan in place; this is because entities that award grants often want to review a complete business plan from its applicants.
Also, be sure to include information in the business plan that states you are a minority-owned business.
The next step is to do some homework and find a suitable grant for which you might be eligible to apply.
5. Find the Right Grant
Once you are certified, you’re ready to look for grants that are a good fit for your business.
6. Apply for Grants Before the Deadline
After identifying which grant could be a good fit, it may take some additional work to gather all the documentation needed for a specific grant.
Always allow yourself plenty of time to make sure that you can meet the deadline. It’s a good idea to get your grant application in as early as possible.
This not only shows your eagerness to take part in the program but also reflects on how well organised your information is.
It gives the review committee more time to spend with your application, particularly if it arrives well before other applicants’ packages.
Always double-check your application and documents before submitting them to make sure you have followed all the guidelines to the letter, including everything required.
Consider hiring a grant writer to review your application or help you draft answers to the application questions.
Finding the right grant to apply for can take some time and effort. It can pay off minority business owners and provide much-needed funding.
Learn more about how small businesses can get help from the government.
Grants for Small Business Startup
Minority business owners face lots of challenges when starting or expanding a small business, including access to affordable small-business loans.
Business grants and financial help can help bridge the funding gap.
Here are some of the best small-business grants and other useful financing resources for minority-owned businesses.
Here are three places to look for minority business grants:
1. Grants.gov
Grants.gov allows grant seekers to find and apply for federal funding opportunities.
It contains information on over 1,000 grant programs across federal grant-making agencies, including the Department of Commerce and the U.S. Small Business Administration.
To apply for Federal Grants, you must get a DUNS number from Dun & Bradstreet (a unique nine-digit identification number) for your business; register to do business with the U.S. government through its System Award Management website, and create an account at Grants.gov.
2. The USDA Rural Business Development Grant Program
This is a USDA Grant for the development or expansion of small businesses in rural areas — minority-owned or not. To qualify, you’ll need to have 50 or fewer new employees, less than $1 million in gross revenues, and be in an eligible rural area.
We can use grants for a variety of purposes, including training and technical help, acquisition or development of land, and long-term business planning.
Applications are accepted through the USDA’s Rural Development’s state offices once per year.
3. National Association for the Self-Employed
This nonprofit trade association provides educational resources and grants for small businesses and entrepreneurs.
To apply for a grant of up to $4,000, you’ll need to become an active member of the association, detailedly explain how you will use the funds, and show how the grant will support your business growth.
4. FedEx Small Business Grant Contest,
The FedEx Small Business annual grant contest awards 12 small businesses with grants of up to $50,000. Any for-profit small business that has been operating for at least six months and has fewer than 99 employees is eligible to enter.
5. Small Business Innovation Research
These two small business programs provide contracts and grants for early stage small businesses that are looking to commercialise innovative research and development.
6. Minority Business Development Agency
This development agency of the U.S. Department of Commerce promotes the growth of minority-run small businesses by connecting owners to financing resources, federal contracts, and market opportunities.
You can contact a local MBDA business centre for more information.
7. National Minority Supplier Development Council
The National Minority Supplier Development Council is a corporate member organisation focused on increasing business opportunities for certified minority-owned businesses.
It operates the Business Consortium Fund, a nonprofit business development program, which offers financing programs and business advisory services for its members.
8. SBA 8(a) Business Development Program
Socially or economically disadvantaged small-business owners are eligible to receive help through this SBA 8(a) program, which provides business development help, training, and management and technical guidance.
To qualify, a small business must be at least 51% owned and controlled by a citizen who has been subjected to cultural bias or prejudice and placed at an economic disadvantage because of race or ethnicity.
Here is a list of eligibility requirements.
9. Operation Hope Small-Business Empowerment Program
The Operation Hope program is designed for aspiring entrepreneurs in low-wealth neighbourhoods, which often include minority communities.
The program combines business training and financial counselling along with access to small-business financing options.
Participants complete a 12-week training program, plus workshops on business financing and credit and money management.
10. Fast Break for Small Business
This $6 million grant program is a partnership among LegalZoom, the NBA, WBNA, and NBA G League. Businesses can receive grant money and LegalZoom services. Accion Opportunity Fund is the nonprofit administrator of the program.
Grant for Black-Owned Businesses
From time to time, there are Black and minority business grants available to help African Americans and other minority entrepreneurs.
Sometimes, grants are offered by major companies, non-profit organizations, and even government agencies.
Admittedly, such opportunities can be very difficult to find, as many have been discontinued.
They offered others in the past as one or two-year programs and did not renew.
Despite this, such opportunities are real and are more often offered through local programs compared to national ones.
Here are the best grant and funding opportunities for Black and minority-owned businesses:
1. Black Enterprise Elevator Pitch Competition
This competition allows 4 semi-finalists to pitch their idea to a panel of judges and a live audience, for a chance to win a $10,000 business grant! Entrants can be one person or a team.
There is no limit to the number of team members allowed; however, those who pitch must have an equity stake in the business.
2. FedEx Small Business Grant Contest,
FedEx allows business owners and entrepreneurs to register and submit their business stories and photos.
Once the application is approved and the voting period begins, they can vote for their own business once a day – and get their friends, customers, and associates to also vote every day.
The number of votes received will boost your visibility in the contest and is one factor that FedEx will consider when selecting the top 100 finalists and the winners.
Grant awards range from $1,000 to $25,000.
3. Facebook Small Business Grants Program for Black-Owned businesses
In response to the economic affects of COVID-19, Facebook has set up a $100m grant – in cash and Facebook ad credits – for small businesses.
Thus, it has also launched its Small Business Grants for Black-Owned Businesses Under this commitment. This program intends to keep the small business workforce up and strong.
Thus, helping them with rent, assisting businesses in connecting with more customers, and supporting the progress of local communities of these businesses.
4. Bumble Fund Application
This Fund is mostly for empowering women of diverse backgrounds. Likewise, applicants who made it to the peak, also get educational resources to grow, launch their business and find the right funding opportunities.
They also focus on early-stage investments with an offer of $25-50K, depending on business requirements
5. The Minority Business Development Agency (MBDA)
This is an agency of the Department of Commerce that gives grants. As the name implies, they support minority-owned businesses across the United States.
They provide grants and loan programs such as the Minority Business Enterprise Inner City Innovation Hub Grant, the Entrepreneurship Education Program for Formerly Incarcerated Persons Grant, and the Enterprising Women of Conor Grant.
6. iFundWomen
iFundWomen is a crowd-funding platform for women-owned businesses. They offer an exclusive program for women of colour, as well as access to grants, guides to crowdfunding, business coaching, and support.
7. Minority Business Development Agency (MBDA),
The MBDA is an agency of the U.S. Department of Commerce that promotes the growth of minority-owned businesses.
They do not directly disburse funds; however, MBDA Minority Business Centres can connect you to the right resources for capital.
8. The National Association for the Self-Employed (NASE)
The NASE offers a Growth Grants Program with micro-grants up to $4,000 to the organisation’s members.
This program is not specifically for Black business owners but may be ideal for small business owners looking for alternative funding.
9. Reclamation Ventures Fund
Reclamation Ventures offers impact grants to underestimated entrepreneurs running wellness businesses.
10. Halstead Grant
Halstead Grants are annual grants given to emerging metal jewellery designers. However, this grant is not strictly for women.
The grant comprises $7,500 in startup capital and $1,000 in Halstead merchandise. Therefore, as part of the application, you must submit a jewellery collection.
11. Amber Grant
This grant isn’t for a tremendous amount of money. However, it is easy to qualify and apply for.
They gave this name after a young woman, Amber, who died before fulfilling her entrepreneurial dreams, the Amber Grant awards $10,000 to a woman-owned business every month.
At the end of the year, one of the 12 monthly qualification winners wins another grant for $25,000.
12. National Institute of Health Grants
The National Institute of Health (NIH) is currently funding grant opportunities related to COVID-19 research.
These grants are reserved for small businesses that develop and research biomedical technology. There are multiple grants available with deadlines throughout 2021 and beyond.
13. Small Business Innovation Research Program (SBIR)
The SBIR offers grants to small businesses so they can take part in federal research and development with the potential for commercialisation.
It’s a highly competitive awards-based program that helps businesses achieve scientific excellence and technological innovation. To qualify for SBIR grants, you must operate a for-profit company and satisfy other requirements.
14. Small Business Technology Transfer Program (STTR)
Similar to SBIR, the STTR program focuses on funding research in the R&D arena.
However, what separates the STTR is the requirement that the small business has a formal collaboration with a research institution.
To qualify for STTR grants, you must operate a for-profit company and satisfy other requirements.
$10,000 Grants for Small Businesses
Small business grants offer free money to start or grow a business—or because of thecoronavirus outbreak, help it stay afloat.
While some states have resources for small business owners and you can also apply for coronavirus business loans, COVID-19 small business grants are also available.
Beyond the following coronavirus small business grants, we present to you a few grants that offer $10,000 for small businesses:
1. Targeted Economic Injury Disaster Loan Advance Grant
Certain small business owners applying for an Economic Injury Disaster Loan (EIDL) through the SBA are eligible for an emergency cash advance of up to $10,000.
This advance can be forgiven by the SBA (effectively turned into a grant) if you spend it on maintaining payroll, paid leave, increased costs, mortgage or lease payments, or other financial obligations.
Targeted EIDL funds are available to businesses in low-income communities that can show a more than 30% reduction of revenue during eight weeks since March 2, 2020.
Your business must have previously received an EIDL Advance for less than $10,000 to be eligible or previously applied for an EIDL Advance but did not receive one because of a lack of programs funding.
The original EIDL Advance program, authorised as part of the CARES Act, is no longer active.
They require no action to qualify for a Targeted EIDL grant. The SBA will reach out to eligible businesses.
2. Shuttered Venue Operators Grant
Shuttered Venue Operators Grants are available to individuals such as movie theatre operators, talent representatives, and others who were affected by having their venue closed because of the pandemic.
Eligible applicants can receive a grant worth up to 45% of their gross earned revenue. The maximum grant amount is $10 million.
To be eligible, applicants or venues must have been in operation as of February 29, 2020, and have not applied for or received a PPP loan on or after December 27, 2020.
As of August 2021, applications for Shuttered Venue Operators Grants are closed.
The SBA intends to open the program for supplemental grants worth 50% of the original award amount, capped at $10 million, but has not yet announced additional details.
3. Small Business Innovation Research Program
They designed the SBIR program for small businesses engaged in research and development that have commercial potential.
The SBIR aims to stimulate technological innovation and scientific entrepreneurship.
Eleven government agencies take part in the program, and each creates their eligibility guidelines, research and development topics, and reviews applications.
Grants start between $25,000 and $250,000, but if your business shows promise, then you can receive additional small business grants of more than $1 million.
4. Small Business Technology Transfer Program
The STTR has similar goals to the SBIR program but requires their small business applicants to collaborate with a research institution.
Five federal agencies currently take part in this program, setting aside a bit of their budget to work with small businesses.
As with the SBIR grants, these federal business grants start at $25,000 and then go up to more than $1 million.
Let’s inspect the five main federal agencies that participate in the SBIR and STTR programs and their more specific grants.
5. Distance Learning and Telemedicine Grant
The Department of Agriculture offers this grant program for small businesses and agricultural producers that are modernising education and health in rural communities.
Specifically, these business grants are an option if your company provides education or health services through telecommunications.
Awards range from $50,000 to $1,000,000.
6. 3D Elevation Grant
The Department of the Interior is offering a government grant for small businesses that can creatively leverage lidar and map data to come up with natural 3D imaging of the nation’s topographical boundaries.
This is a great business grant for design and technology firms.
7. Minority Small Business grant for Covid-19
COVID-19 poses a serious threat to health systems worldwide, but particularly in countries where health systems are least developed.
The Global Fund is supporting countries as they – while responding to the COVID-19 pandemic– continue to deliver impact on existing grants, develop quality new grants for the 2020-2022 allocation period, and strengthen health systems.
Below are COVID-19 related grants for application:
8. State-Based COVID-19 Relief Grants
Many local COVID-19 grants and relief funds were created in 2020 to help businesses struggling due to the pandemic.
Some of these programs, such as the Minnesota DEED Small Business Relief Grant Program and Denver Economic Development and Opportunity Relief Package, have exhausted their funding and are no longer issuing grants.
However, some states and cities have continued to offer relief this year.
For example, California legislation passed in February 2021 will provide small business grants of up to $25,000.
New York State is also offering grants of up to $50,000 through their COVID-19 Pandemic Small Business Recovery Grant Program.
Monitor your state’s department of commerce website or grants portal, as well as organisations like your local chamber of commerce, to stay on top of free money opportunities as they arise.
9. Corporate COVID-19 Relief Grants
Similar to local government efforts, many well-known corporations such as Facebook and Yelp offered small business grants and relief at the beginning of the pandemic that is no longer available.
Some companies continue to introduce new funding—Verizon committed $10 million to small business grants in February.
10. COVID-19 Economic Injury Disaster Loan
Through the SBA, small businesses can receive up to $10,000 in Targeted EIDL Advances.
These businesses must be in low-income communities and be experiencing a loss of revenue because of the pandemic.
11. Indigenous Business Australia – COVID-19 Support
Indigenous Business Australia – COVID-19 Support provides Indigenous businesses with funding and specialist advice to help them recover from the impact of COVID-19.
12. COVID-19 Small Business Loans and help
COVID-19 loans, debt relief, and grants can help small businesses continue operating and paying their employees.
13. SME Recovery Loan Scheme
The SME Recovery Loan Scheme enables small and medium-sized enterprises (SMEs) to access funding to get through the impact of coronavirus, recover and invest in the future.
The Australian Government works with lenders to:
➣ Enhance lenders’ ability to provide cheaper credit
➣ Ensure that eligible businesses have access to finance to maintain and grow their business.
This program provides small and medium-sized businesses with guaranteed loans to help their businesses recover from the impacts of the coronavirus crisis.
14. Covid-19 Response FUND
WITH Foundation is currently providing two (2) funding opportunities. We are accepting applications for our COVID-19 Response Fund and our Open Cycle.
Applications for the COVID-19 Response Fund will be accepted until November 30, 2021. They will accept LOI submissions for our Open Cycle until December 13, 2021.
This round of funding is open to the nonprofit community (not just current and previous WITH grantees).
This funding will specifically support healthcare service delivery models that address the needs of adults with intellectual and developmental disabilities (I/DD) affected by long-haul COVID-19.
Minority Small Business Grants FAQs
When applying for a Minority Small Business Grants there are a few factors, you must consider and below are frequently asked questions and answers you to note:
QUES: How Do You Qualify For a Small Business Grant?
➣ When you read about “qualifying” for a small business grant, most people are talking about eligibility.
➣ Each grant specifies which businesses are eligible to win it. Anyone can apply for a grant, but if you don’t meet the eligibility criteria, you have zero chance to get it.
➣ Of the grants listed on this page, almost every small business can apply for grants in the government and corporate grant sections.
➣ If you’re a woman, you have several grant opportunities.
➣ Most of the rest of the grants I included here are for a specific type of business, so you’ll need to look at them individually and see if your small business is eligible.
QUES: Do You Have to Pay Back Small Business Grants?
➣ No! That’s what makes their grants.
➣ Unlike loans, grants do not require you to be paid back and can be used for just about anything business-related.
➣ Some grants do require you to report back how the grants were used and how they helped, but that’s usually for them to get more publicity or to try and help you further.
QUES: What is the Limit on the Number of Grants I Can Apply For?
➣ There are rarely any limits on the number of grants you can apply for. However, you can only apply to each grant once per business you run.
➣ Sometimes, a program offers multiple grants per year. Most of them allow businesses to submit applications multiple times, but a few do not. Check the grant details to find out.
QUES: What Type of Credit do You Need to Get a Grant?
➣ Credit is rarely a factor when determining the winner of a grant.
➣ However, you’ll likely need decent credit to get your business up and running in the first place before you can even apply for most grants.
➣ Most grants require that your small business is in good financial standing, meaning that you don’t have any unreasonable debt that can’t be paid back.
QUES: How Much Money Can I Get?
➣ This varies widely based on each grant. One business might win a grant for $500, while another might win $500,000
➣ The amount of each grant should be something you consider when you’re deciding which grants to apply for.
QUES: Are There Any Downsides to Business Grants?
➣ A variety of factors make many business owners skeptical of the “free” money that business grants offer.
➣ While every grant has a different application period, rules, terms, and conditions, here are some potential downsides you should keep in mind when applying.
QUES: How do I get a minority business grant?
➣ To strengthen your application to a minority business grant, go through several drafts of your business plan and application materials to make sure they are as strong as possible.
➣ Research the organisation providing the grant and tailor your application materials to their values to show that your business will use the grant money to support their overall mission.
QUES: What is the difference between a grant and a loan?
➣ Grant recipients do not have to pay grant funds back, while people who take out a loan expect to pay it back, often with interest.
QUES: What government grants are available for small businesses?
➣ There are several small business grants available through the federal government.
If you have any questions concerning Minority Small Business Grants, please feel free to use the comment box below and ask us your question. We will be very pleased to answer you.
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