Top 5 Minority Grants For Small Business Owners 2024
Reviewed by Randolph Vialva, MBA
The article is checked by our editorial team, Which includes entrepreneurs who are painfully aware of how overwhelming and challenging it is to start a business for the first time.
All products recommended by Bizreport are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you buy something through one of these links, we may earn an affiliate commission.
For most eligible small businesses, obtaining capital is a difficult task. Even if they have some money set aside, most newly established businesses will want more funding to cover launch costs, assets, and expenditures.
Whether it’s a loan, a tradeline, or a corporate credit card, established firms rely on periodic infusions of grant money. These financial lifelines assist businesses in weathering unforeseen costs, responding to economic upheavals, and remaining competitive in the marketplace.
Minority small business owners, on the other hand, have additional challenges. Small business owners from underrepresented populations have a lower chance of getting a loan and receive a lesser percentage of venture capital investment. Minority small business grants help to bridge the financial gap for minority-owned businesses.
This list includes 5 minority-owned business grant programs as well as more general business financing sources. Small business grants aren’t the only way to support a small business but here are some of the top minority grants options.
Top 5 Minority Grants For Small Business Owners
- Grants.gov – Best overall
- Minority Business Development Agency – Best for Resource Minority Grants
- National Association for the Self-Employed – Best for Non-profit Trade Association
- FedEx Small Business Grant Contest – Best voting Grant for small businesses
- SBIR & STTR– Best for Contracts and Grants of new businesses
Features Of The Best Top 5 Minority Grants for Small Business – Grants.gov
Here are a few to consider:
- Assisting the grantmaking community in learning more about available opportunities.
- Simplifying the grant application process to save applicants money, time, and hassle.
- Making it easier to interact with the federal government.
- Making it easier to find and research federal grant opportunities.
Top 5 Minority Grants for Small Business in 2024
Grants.gov
This federal portal is a wonderful place to look for grants that are relevant to your business and eligibility. Over 1,000 small company grants are available through Grants.gov, which provides eligibility rules, application information, and deadlines.
- Non-Repayable
- Easily accessible
- Enhance your credibility
- Problems logging in at intervals
This federal portal is a wonderful place to look for grants that are relevant to your business and eligibility. Over 1,000 small company grants are available through Grants.gov, which provides eligibility rules, application information, and deadlines.
Grants.gov is a website that allows anyone to search for and qualify for federal grants. It offers details on over 1,000 grant programs administered by grant-making federal government agencies such as the United States Department of Commerce and the Small Business Administration.
To qualify for federal grants, you must first get a DUNS number (a unique nine-digit id) for your company from Dun & Bradstreet; then register to conduct business with the local governments through the System Award Management website; and last, set up an account at Grants.gov.
Minority Business Development Agency
The Minority Business Development Agency (MBDA) aggregates a wealth of educational resources and tools for minority-owned businesses, including grants and other funding options.
- One-stop shop for minorities seeking funding as well as a variety of other business services
- Found all around the United States
- Technical assistance
- Assist minorities in preserving their small enterprises in order to foster a strong entrepreneurial community
- Application procedure for these business grants might be competitive, making funds tough to come by
The MBDA is a one-stop-shop for minority-owned businesses looking for grants, advisory services, and other types of help. Unlike the other organizations on this list, the MBDA business centers function by awarding funds to Minority Business Centers around the United States. You may uncover grants that your own business qualifies for as well as a plethora of other business financing resources accessible to minority-owned small businesses by looking for a Minority Business Center near you.
Overall, the MBDA has the widest range of grant possibilities and services for companies of all sizes and sorts.
National Association for the Self-Employed
Although NASE does not award business grants for minorities, this business development program is aimed at smaller enterprises that may not be able to gain access to other forms of funding. Furthermore, a NASE Business Growth Grant can be used for a range of business reasons, including the purchase of equipment, the employment of staff, and the creation of marketing materials.
- $5,000 Critical illness insurance
- Health insurance access
- Unique growth grants
- Limited to $5,000 for new businesses
The National Association for the Self-Employed (NASE) is a non-profit trade organization[1] that assists small business owners and aspiring women entrepreneurs[2] with business grants and educational materials. Minority business owners can apply for grant funding for a specific small business need through its Growth Grants Program.
Each of these grants is worth $4,000 in total. The NASE is a fantastic resource for minority business owners who have a particular, defined financial protection. While you won’t win the funding jackpot with it, it’s a terrific resource for minority business owners who have a specific, defined funding need. To apply for a grant, you’ll need to join the NASE and explain how you’ll utilize the grant money and how it will help your company. A monthly subscription starts at $11.95 per month and costs $120 per year.
FedEx Small Business Grant Contest
Every year, the FedEx Small Company[3] Grant Contest gives grants to around 10 worthy business owners across the country. Grants range from $15,000 to $50,000, with FedEx print services worth $1,000 to $7,500.
- Grand Prize winner receives $50,000 in addition to $7,500 in FedEx Office print services
- Second Place winner receives $30,000 in addition to $5,000 in FedEx Office print services
- Third Place winner receives $15,000 in addition to $1,000 in FedEx Office print services
- Limited to 3 winners
The FedEx Small Company Grant Contest is an annual nationwide competition that awards eligible small business owners and aspiring entrepreneurs grants in the form of cash and prizes (such as FedEx service credits). Although it is not expressly for minority company owners, many previous winners and finalists have been minorities. The amount of money given to contest winners and the number of people who get business grants for minorities fluctuate from year to year.
The grand award in 2021 was a $50,000 business grant and $7,500 in FedEx Office print services. There are other smaller rewards available. There was a total of 12 FedEx Small Business Grant winners in the 2021 competition.
Small Business Innovation Research and Small Business Technology Transfer Programs
SBIR and STTR enable small enterprises to explore their technological potential and give the motivation to profit from its commercialization through a competitive awards-based business development program.
- Improve the monetization of federally financed private-sector research
- Encourage scientific and technological progress
- For all business entities type
- Must be based in the United States, operate primarily in the United States, or contribute a significant amount to the American economy through taxes and purchases
Small businesses involved in cutting-edge research and development can apply for SBIR and STRR funding to help with business growth. NASA, the Department of Defense, the Department of Energy, the Department of Health and Human Services, and the National Science Foundation are among the eleven federal entities that have set aside money for this grant program.
The grant eligibility standards and reward amounts are mostly unique to the program and particular grant you’re applying for. You must have a for-profit small firm that is American-owned and run, with the lead researcher working for you. Additionally, your company must employ no more than 500 people.
Qualification For Applying Minority Grants for Small Business
Small business grant applications come in various forms. Some grant-giving organizations demand complete grant submissions, while others simply want a modest amount of data.
Grant applications aren’t usually quick or simple. Many grant applications are lengthy and detailed, necessitating the use of a detail-oriented team member to write the application.
To begin, select whether or not you want to employ a grant writer. Grant writers are experts with the expertise needed to put up a compelling application.
If you wish to apply for small business grants on your own, keep in mind the requirements and deadlines.
Obtaining Minority Company Enterprise Certification is the first step in obtaining minority-owned business funding (MBE). The National Minority Supplier Development Council accepts applications for MBE accreditation (NMSDC). You can use this qualification to get federal contracts and government grants.
Do You Meet the Requirements?
You must be a U.S. citizen and complete certain requirements in order to get certified. Your company must be 51 percent (or more) minority-owned, controlled, and operated.
Individuals that are at least 25% Black, Asian, Native American, or Hispanic are considered minorities. If your small business is publicly traded, one or more members of the minority groups must control at least 51 percent of the stock.
Your small business must be a for-profit corporation based in the United States or one of its territories. Furthermore, a member of the minority ownership group is responsible for managing and overseeing everyday operations.
Collecting business records
Make sure you have all of the necessary minority-owned business consulting and documentation. Depending on the complexity of the business you own, different documents are required.
Partnership agreements, meeting minutes and agendas, canceled checks, and banking agreements are some of the most common types of paperwork.
Articles of incorporation and bylaws, business leases, and insurance policies are some of the other paperwork you’ll need. You’ll also need to show evidence of your citizenship.
Fill out the online application
You must first submit an online application before the NMSDC may certify you as an MBE. You’ll need to submit some basic information, such as your name and contact information for your company.
You’ll also need a synopsis of your products and services, as well as information on your company’s kind and history. After that, list the shareholders’ and owners’ names. Include the number of minorities who work for you.
Of course, you’ll need to know the racial or ethnic origins of the firm’s owners, as well as their citizenship status and gender. Also, figure out what his or her job is in the company. Finally, submit a list of customer references as well as your financials.
Pay the Fee for Certification
The regional certification fee is the last stage in the certification procedure. The cost of consultation might range from $350-$1200. Visit the NMSDC website to discover your reason. It’s important to keep in mind that accreditation can take up to 90 days to arrive.
Frequently Asked Questions (FAQs)
Most individuals refer to eligibility when they talk about “qualifying” for a small business grant. Each grant indicates which companies are eligible to receive it. Anyone can apply for a grant, but if you don’t match the requirements, you have no chance of receiving one.
There are almost never any restrictions on how many grants you may apply for. However, each grant can only be applied once per firm. A grant program may award many grants each year. The majority of them enable firms to submit numerous applications, while a handful does not. To discover it, look at the grant information.
No! That is what distinguishes them as small business grants. Grants, unlike small business loans, do not demand repayment and can be utilized for almost any business-related purpose.
This varies greatly depending on the funding. A $500 grant might be awarded to one business, while a $500,000 grant could be awarded to another. When determining which business grants to apply for, the amount of each grant should be taken into account. Some business grants ask you to report back on how the funds were spent and how they aided you, although this is generally so that they may gain more attention or try to assist you more.
When it comes to deciding who gets a grant, credit is seldom a consideration. However, before you can apply for most grants, you’ll probably need good credit to get your firm up and operating in the first place. Furthermore, most business grants demand that your small business is in excellent financial condition, which means that you don’t have an unsustainable debt that can’t be paid back in a fair amount of time.
ABOUT THE REVIEWER
+ 3 sources
Bizreport Advisor adheres to strict editorial integrity standards avoids using tertiary references. We have strict sourcing guidelines and rely on peer-reviewed studies, academic research. To ensure the accuracy of articles in Bizreport, you can read more about the editorial process here.
- Oliveira, M., Sousa, M., Silva, R. and Santos, T. (2021). Strategy and Human Resources Management in Non-Profit Organizations: Its Interaction with Open Innovation. Journal of Open Innovation: Technology, Market, and Complexity, [online] 7(1), p.75. Available at: https://www.mdpi.com/2199-8531/7/1/75 [Accessed 21 Jan. 2022].
- Escholarship.org. (2017). eScholarship. [online] Available at: https://https://escholarship.org/content/qt4dc9m1nn/qt4dc9m1nn.pdf [Accessed 21 Jan. 2022].
- Yun, M., Xiong, J. and Wong, K. (2016). Is FedEx a Good Investment Choice? Frontiers in Economics and Management, [online] 2(2), pp.171–175. Available at: https://www.airitilibrary.com/Publication/alDetailedMesh?docid=P20200813001-202102-202103020001-202103020001-171-175 [Accessed 21 Jan. 2022].