Launching and running a successful small business is never easy. But for many Black and minority small business owners, the barriers to entry are often insurmountable.
The greatest barrier to entry? Insufficient equity. According to the Minority Business Development Agency (MBDA), minority business owners have less access to capital than their non-minority counterparts.
But if you can’t get traditional financing, or you can’t get enough financing, then how can you launch and grow your business? How can you realize your dream without taking on a crippling amount of debt?
One way is through small business grants. Many federal and state agencies, non-profits, and other organizations are actively working to close the racial wealth gap by providing financial and other assistance to minority-owned businesses. In addition to a cash award, many grant programs include extra support like business development training, technical assistance, financial coaching, legal services, promotional support, and connections to larger businesses.
In honor of Black History Month, Dun & Bradstreet has curated a comprehensive list of small business grants to support the Black business community and help Black business owners bring their vision to life and grow their business.
Federal Grants for Black-Owned Businesses 2022
- Grants.gov - If your business qualifies for federal grants, start your search at grants.gov. This database contains over 1,000 grant programs funded by federal grant-making agencies.
- Small Business Innovation Research (SBIR) and the Small Business Technology Transfer (STTR) programs - If your business is in technology or scientific research, you may qualify for grants under the SBIR and STTR programs. These programs provide grants to qualifying startups and small businesses to encourage participation in innovation and entrepreneurship and help commercialize new products.
- Minority Business Development Agency (MBDA) Business Grants - The U.S. Department of Commerce’s MBDA is the only federal agency dedicated to helping minority-owned small businesses grow. The MBDA helps qualifying small businesses gain access to capital, secure contracts, and access global markets.
- SBA 8(a) Business Development Program - The U.S. Small Business Administration’s (SBA) 8(a) Business Development program provides qualifying businesses with various forms of management, technical, financial, and procurement assistance.
- USDA Rural Business Development Grants Program - The USDA’s Rural Development office provides technical assistance and training for small rural businesses (businesses with fewer than 50 new workers and less than $1 million in gross revenue). To qualify, your business must also be in an eligible rural area.
- USDA Water and Waste Disposal Loan and Grant Program - This program provides both grants and business loans to qualified applicants in the field of water or waste disposal who may not qualify for traditional financing.
Non-Federal Grants and Funding for Black-Owned Businesses 2022
- FedEx Small Business Grant Contest - This contest awards 10 small businesses with grants of up to $50,000, plus additional prizes. The top 100 finalists will receive a package of resources for their business. The contest is open for entries from February 10-28, 2022.
- Voodle Visionaries Grant Contest - Video messaging platform Voodle’s Visionaries Grant Contest is open to female, non-binary, and BIPOC business founders. The winner receives a $10,000 grant and promotional support. To apply, you must submit a 60-second video by February 25, 2022.
- Capital One Business grant program - Capital One is partnering with the Association for Enterprise Opportunity (AEO) to award $10,000 cash grants to 150 Black-owned businesses to help supplement revenue lost because of the COVID-19 pandemic. The program will launch in February 2022. You can also sign up to receive notifications about the program.
- SoGal Black Founder Startup Grant - SoGal Foundation has teamed up with multiple sponsors to award several $10,000 and $5,000 cash grants to Black women or nonbinary entrepreneurs. Awardees will also receive assistance navigating the fundraising environment and get lifetime “ask-me-anything” access to the SoGal Foundation and SoGal Ventures teams. The application process for this program is rolling.
- National Black MBA Association® (NBMAA®) Scale-Up Pitch Challenge - This annual pitch competition support’s the NBMAA’s mission to create and support wealth-building opportunities for MBA members. In 2021, the grand prize winner received $50,000.
- EnrichHER Grant Contest - EnRichHER is the only Black woman-owned fintech lender serving women and founders of color. Each year, the EnrichHER Grant Contest awards a $5,000 small business cash grant. Although entries closed on February 3, keep this contest in mind for 2023.
- National Institute of Small Business Grants (NISMB) - NISMB’s website BusinessGrants.org is an information hub designed to help prospective and existing small business owners find grants.
- National Minority Supplier Development Council - The National Minority Supplier Development Council (NMSDC) is a corporate member organization focused on advancing business opportunities for certified minority-owned businesses and connecting them to corporate members who want to purchase their products, services, or solutions. NMSDC’s corporate membership includes some of the largest public and privately owned companies, as well as healthcare companies, colleges, and universities.
- National Association for the Self-Employed (NASE) Growth Grants - NASE is a nonprofit trade association that awards grants of up to $4,000 through its Growth Grants program. The grants can be used for marketing, advertising, hiring employees, expanding facilities, and other business needs.
- Operation HOPE’s Small Business Development Program - This program offers small business workshops and an intensive entrepreneurial training program for current and aspiring small business owners in underserved communities. The program provides business training, personal development, access to professional services, and financial counseling.
Additional Financial Resources for Black Business Owners
Dun & Bradstreet offers educational resources and insights to help small business owners realize their dreams of becoming entrepreneurs and growing successful businesses. For more information on applying for minority- and black-owned business grants, including how to write a grant proposal, check out our guide here. And in addition to business grants, you might want to consider exploring alternative loans for small businesses.
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