Minority small business grants are available through both the government and the private sector. Grants.gov lists more than 1,000 grants by region, business type, and ownership.
Here are seven grants available to minority small business owners.
1. Small Business Administration
The American Rescue Plan Act, administered by the Small Business Administration, covers grants for small businesses, including one designated for businesses that closed during the pandemic. Eligible applicants can qualify for grants equal to 45% of their gross earned revenue, up to $10 million.
2. Minority Business Development Agency
The Minority Business Development Agency was created to support minority-owned small businesses. Each year, the agency connects business owners to financing resources and hosts grant competitions.
3. United States Department of Agriculture
The United States Department of Agriculture offers more than $9 million in assistance to minority farmers and ranchers to help them buy, own and operate farms and ranches and equitably participate in USDA programs.
4. The Coalition to Back Black Businesses
The Coalition to Back Black Businesses provides immediate grants and long-term support to Black small businesses in economically vulnerable communities as they recover from the economic effects of the pandemic. The coalition will distribute $5,000 grants — and a select few $25,000 grants — through 2023.
5. National Black MBA Association
The National Black MBA Association provides grants and prizes between $1,000 and $50,000 through its annual Scale-Up Pitch Challenge. The competition is open to Black founders of African descent whose ideas and concepts for a startup company are in the initial or early stages of development.
6. First Nations Development Institute
The nonprofit First Nations Development Institute is dedicated to improving economic conditions in Native communities through grants and technical assistance and training. It has awarded more than $43 million to Native American projects and organizations.
7. FedEx Small Business Grant
FedEx hosts an annual contest for small business owners; 12 finalists receive grants, and the top prize is $50,000. The contest is open to U.S. residents who have owned a business for at least six months and have a valid FedEx shipping account number.
Other Funding Avenues
Funding is available for persistent business owners who explore every option for getting the money their businesses need. Grants for minority small business owners can be great cash infusions, but they’re not guaranteed. Minority business owners might also find more success in obtaining a small business loan from an alternative lender, which takes a more personal approach to the approval process, than a traditional bank.
