Minority entrepreneurs play a major role in the small business sector — 21% of all businesses are owned by individuals belonging to minority groups, according to U.S. Census Bureau data. However, securing financing can be a significant challenge.
“There is an estimated $40 billion annually of unmet financing demand from BIPOC-owned employers,” said Elizabeth Gore, president and co-founder of Hello Alice, a business financing company. “There are many reasons for gaps in funding to startups: conscious and unconscious bias, unequal access to networks and education and, specifically for women, a disproportionate responsibility for caretaking and household work.”
Loan amount
$5,000 to $250,000
Via OnDeck’s Website
Small business grants for minorities aim to close those gaps and give entrepreneurs the funding to start or grow their businesses. Here are 24 business grant opportunities — 21 private grants and three from the federal government.
21 private business grants for minorities
1. Black Girl Ventures Pitch competition
Black Girl Ventures (BGV) Pitch is an annual competition that provides coaching and funding to Black and Brown women who own small businesses. Qualifying entrepreneurs make a three-minute pitch to an audience, who votes for their favorites by contributing money. The business with the most votes wins — the top three winners receive $10,000, $6,000 and $2,000.
Winners also receive the money raised during the pitch event, access to Canva for one year, Salesforce for Startups and other resources. All participants can access the BGV network, including business resources and capital opportunities.
Who qualifies? Your business must be at least 51% owned by a Black or Brown woman. It must have operated for at least one year and be revenue-generating.
How can I apply? Submit an online application and describe how you would use grant funding. In the past, the application closed in November.
2. Black Ambition Prize
Founded by musical artist Pharrell Williams, the Black Ambition Prize is a competition for Black and Hispanic business owners building early-stage ventures in an eligible field. You can compete for awards between $15,000 and $1 million, and winners also get coaching and leadership workshops.
Who qualifies? Black or Hispanic business owners who run a for-profit business in one of the following categories:
- Consumer products and services
- Healthcare
- Media and entertainment
- Technology
- Web 3.0
You must be at least 18 years old and have at least two team members. Your business must have raised less than $1 million.
How can I apply? Submit an online application describing the problem your business addresses, your market segment and your business model. If applicable, you may include a product or prototype. In the past, the application has been open from March to early May.
3. Women of Color Entrepreneur Grant
The Corporate Counsel Women of Color (CCWC) Entrepreneur Grant gives five annual grants of $2,500. The CCWC also provides mentorship, business development programs and conferences.
Who qualifies? Your for-profit business must have been established before Jan. 1, 2020 and have generated at least $25,000 in total revenue. You must be at least 18 years old and have an employer identification number (EIN).
How can I apply? Submit an online application and describe your business and how you would use the grant funds. Applications are accepted on a rolling basis, and winners are announced in January.
4. Vanguard Accelerator
The Center for Economic Inclusion (CEI) sponsors the Vanguard Accelerator program, which awards $5,000 grants to 20 businesses owned by Latina or Black woman entrepreneurs in the Minneapolis-St. Paul area. Winners also receive scholarships to the Founders First business accelerator program and access to forgivable loans up to $250,000.
Who qualifies? You must be a Black woman or Latina business owner in the Minneapolis-St. Paul region of Minnesota. Your business must have at least three employees and generate between $75,000 and $3 million in annual revenue.
How can I apply? Register with the CEI and submit an online application. Create a short pitch video that describes your business and why you should be awarded a grant. You must also provide an organization chart and profit-and-loss statements. The application is typically available from mid-January to mid-February.
5. Coalition to Back Black Businesses Grant
In partnership with American Express, the Coalition to Back Black Businesses offers $25,000 grants to support economically distressed communities still recovering from the COVID-19 pandemic. Winners will also receive mentorship and training, as well as additional support from program partners like Cummins and Optimum.
Who qualifies? You must be a Black business owner in an economically vulnerable community, and your business must have between three and 20 employees.
How can I apply? Submit an online application and answer several essay questions about your business and its impact on the community. In the past, the application has been available throughout August. 2024 will be the final year of the program.
6. Fast Break for Small Business Grant
In partnership with the NBA, WNBA and NBA G League, the annual LegalZoom Fast Break for Small Business program gives selected business owners $10,000 in grants and up to $500 in LegalZoom products and services.
Who qualifies? You must be a Black business owner whose enterprise has been in operation for at least six months and has an annual revenue under $1 million.
How can I apply? Submit an online application through LegalZoom or the Accion Opportunity Fund. In the past, the application has been available in February.
7. Queer to Stay Grant
The Human Rights Campaign (HRC) and Showtime co-sponsor the Queer to Stay Grant for LGBTQ+ business owners. Winners receive a $10,000 grant for businesses that serve the LGBTQ+ community and provide a safe space, particularly for LGBTQ+ people of color, women and the transgender community.
Who qualifies? You must own a for-profit business that serves the LGBTQ+ community, including communities of color, women and transgender or nonbinary individuals. Your business must have been negatively impacted by the COVID-19 pandemic, and priority will be given to business owners who belong to the community they serve.
How can I apply? Submit an online application and describe the impact of your business in your local LGBTQ+ community. In the past, applications have closed at the end of August.
8. Feed the Soul’s Restaurant Business Development Grant
The Feed the Soul Foundation sponsors the annual Restaurant Business Development Grant for culinary businesses owned by marginalized individuals. Winners receive a $10,000 grant and six months of education, business development consulting and training in marketing and advertising.
Who qualifies? You must run a culinary business, such as a restaurant, food truck, bakery or bar. Your business must be at least 51% owned by a person who identifies as marginalized. It must have been operational for at least two years and have more than four employees.
How can I apply? Submit an online application and provide three years of financial statements. In the past, the application has been open from October to the end of January.
The NDN Collective provides grants to small businesses run by Indigenous leaders in North America. The Community Self-Determination Grant is available in amounts of $100,000 per year to businesses that focus on one of the following areas:
- Protecting environmental resources
- Sustainable economic development and climate change solutions
- Supporting Indigenous cultural or ceremonial practices, language and education
Who qualifies? Businesses must be 100% Indigenous-led, including First Nations or Aboriginal communities in the U.S., Canada and Mexico.
How can I apply? Create a free account with the NDN Collective and submit an online application. In the past, the application closed in early May.
10. #SupportSmallBiz Grant
Small Business Majority and Support Latino Business collaborate to provide the annual #SupportSmallBiz Grant. Four businesses that are at least 50% Latino-owned are awarded $2,500 and recognition on the sponsors’ platforms.
Who qualifies? Your for-profit business must have at least 50% Latino ownership and have been operating for at least one year.
How can I apply? Register your business with the Support Latino Business network and join the Small Business Majority mailing list. Submit an online application that details your business journey, goals and pitch for funding. In the past, the application closed in late September.
11. Hawaii FoundHer program
The Hawaii FoundHer program awards five annual grants to Native Hawaiian, Asian and Pacific Islander women-led businesses in one of the following areas:
- Technology
- Fashion
- Health and wellness
- Food systems and restaurants
- Education
Winners receive a $20,000 grant, a $4,000 child or elder care stipend, educational workshops, monthly retreats and access to a mentorship network.
Who qualifies? Your for-profit business must be based in Hawaii and be at least 50% owned by a Native Hawaiian, Pacific Islander or Asian woman. Your business must have been operational for fewer than three years and be able to provide proof of business concept in an eligible industry.
How can I apply? Submit an online application — the next program cycle was slated to begin in March 2024.
12. HerRise Microgrant
The HerRise Microgrant program provides one $1,000 grant each month to businesses owned by women of color. Past recipients have used grant funds to purchase computers, create websites and prepare marketing materials.
Who qualifies? Your business must be at least 51% owned by a woman of color and have less than $1 million in annual revenue.
How can I apply? Submit an online application with a business plan and grant pitch. Applications are due by midnight on the last day of the month.
13. Ingredients for Success Entrepreneurs Initiative
Famous Amos and the National Black Chamber of Commerce (NBCC) operate the Ingredients for Success Entrepreneurs Initiative, which awards three $50,000 grants to Black-owned businesses each year. Winners also receive ongoing mentorship and resources from the NBCC.
Who qualifies? Your business must be at least 90% Black-owned and have operated for fewer than five years. You must be at least 21 years old to apply.
How can I apply? Submit an online application and a short pitch video on how you’ll use the grant funds. In the past, the application was open from mid-May to late June.
14. Merchant Maverick Opportunity Grant
Merchant Maverick provides $10,000 grants to two marginalized business owners who have trouble securing business financing. A different group is eligible for funding each year — past awards have gone to:
- Black women business owners
- Asian American and Pacific Islander restaurant owners
- Portland, Oregon startups
- Native American business owners
Who qualifies? Grant eligibility changes each year. In addition to fitting the current cycle’s criteria, businesses must be based in the U.S.
How can I apply? Submit an online application and be prepared to describe your business goals and how you’d use grant funds. In the past, the application was open from September through November.
15. National Association for the Self-Employed (NASE) Growth Grant
NASE provides resources and discounts to small business owners, including its quarterly Growth Grant. Members can apply for a grant worth $4,000 for business needs like marketing, hiring employees or expanding facilities — funds cannot be used for debt, rent or mortgage payments. You must be a registered NASE member to qualify, and annual dues range from $25 to $540.
Who qualifies? Start by joining NASE and paying your dues. Your membership tier dictates how long you must wait to apply for a grant — monthly members must wait 90 days before applying, while annual members can apply immediately.
How can I apply? Submit an online application and a business plan that describes how you’ll use the funds. The grant application is always open, but pitches are reviewed quarterly in January, April, July and October.
16. NBMBAA Scale-Up Pitch Challenge
The National Black MBA Association (NBMBAA) hosts an annual Scale-Up Pitch Challenge, where startup founders compete for a $50,000 cash prize. The second-place winner receives $10,000, third-place receives $7,500 and the audience votes for the “People’s Choice Award,” worth $1,000.
Your three-minute pitch should describe your product or service and describe its value, target audience, revenue model and how it differs from its competitors.
Who qualifies? At least one member of the pitch team must be a member of the NBMBAA. Your business must have at least one Black founder with an equal stake in the enterprise.
How can I apply? Submit an online application and prepare your pitch. About six weeks after the application window closes, ten semifinalists will advance to the annual conference, where they make their pitches to a judging panel and audience. In the past, the application was open from mid-June through early August.
17. REI Navigate program
REI Navigate is a four-month program for business owners of color in the outdoor industry. Five to seven winners receive a $25,000 grant, and there’s the potential for additional investments from the REI Navigate fund. Recipients also get one-on-one mentorship, group programming and time to present at a live demo event.
Who qualifies? Your for-profit business must be in the activity or outdoors categories, including apparel, footwear, gear or consumer packaged goods (CPG). At least one founder must identify as Black, Indigenous, Latino, Asian American or Pacific Islander, and your company must have between $75,000 and $2 million in annual revenue.
How can I apply? Submit an application that describes you, your business and your plans for growth. You must include a pitch deck or one-pager, and may include an optional video introducing the founders. Typically, the application is available throughout February and closes in mid-March.
18. Founders First National Pride Grant
Founders First runs the National Pride Grant for LGBTQIA+ business owners. Each year, 25 winners receive $25,000 grants to use for any purpose that helps their business grow. Recipients also get access to exclusive webinars and other business resources.
Who qualifies? You must be an LGBTQIA+ business owner with between two and 100 employees. Your business must be in operation for at least one year and have an annual revenue of under $5 million.
How can I apply? Submit an online application (or pre-register if the application window hasn’t opened). You’ll also need to create a short pitch video. The application typically opens in May.
19. Transform Business Grant
The Transform Business Grant was designed to support entrepreneurs from systemically oppressed groups, including people of color, disabled individuals, formerly incarcerated business owners and LGBTQ+ people. This program provides microgrants of $1,000 to business owners looking to grow their enterprises and improve their business skills. Recipients also participate in a year-long program that includes mentorship in branding, marketing, website development and more.
Who qualifies? You must identify as a member of a systematically marginalized group. Your business must be oriented toward making a social impact or addressing oppression and injustice.
How can I apply? Submit an online application and describe your business’s impact on your community. In the past, applications have been accepted twice a year: March and August.
20. Impacto Hispanic Business Accelerator
PepsiCo and the Accion Opportunity Fund created the Impacto Hispanic Business Accelerator program for Hispanic business owners in the food and beverage industry. Each year, 100 small businesses receive $10,000 grants, plus one-on-one coaching, group mentorship, events and digital resources.
Who qualifies? You must be a Hispanic entrepreneur who owns a food-related business, including restaurants, catering, cafes, food trucks, bodegas and carnicerias. Your business must have been operational for at least two years and have an annual revenue of under $1 million. Your business must be located in one of the following Impacto markets:
- Albuquerque, New Mexico
- Chicago, Illinois
- Dallas, El Paso, Houston or San Antonio, Texas
- Las Vegas, Nevada
- Los Angeles, California
- Miami, Florida
- New York City, New York
How can I apply? Submit an online application, including copies of your most recent business tax return and bank statement. In the past, the application was available from mid-May to mid-June.
21. Asian Women Giving Circle
Since 2006, Asian Women Giving Circle has awarded business grants to Asian American women in New York City who center social injustice and the arts in their business models. Six to eight winners receive grants of up to $8,000, and funds should be used to promote social change and support your local community.
Who qualifies? Your business must be led by Asian American and Pacific Islander (AAPI) women or gender-expansive people. Your project proposal must integrate the arts and social change and demonstrate your commitment to NYC communities.
How can I apply? Submit an online application that describes your project and how it will impact your community, plus a proposal budget. You may also include online work samples representing your style or proposed project. The application is available throughout February and closes in early March.
3 federal business grant resources
Several federal programs aim to help small business owners secure the funding they need to grow. Some opportunities are open to any entrepreneur, while others are specifically designed to empower minority business owners.
1. Grants.gov
Grants.gov features over 2,000 grant opportunities from federal agencies like the Departments of Health and Human Services, State and Energy. Federal grants can be worth up to several million dollars, but the application process is lengthy and complicated. Winning a federal grant is prestigious and may open doors to additional funding for your business.
Who qualifies? Your business must meet the size standards set by the Small Business Administration. Other eligibility requirements vary by grant opportunity.
How can I apply? Create a Workspace account at Grants.gov. To bid on government contracts and be eligible for federal grants, you must also have a Unique Entity ID number from SAM.gov. After registering, you can search the database and apply for grants matching your business category and purpose.
2. Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs
The SBIR and STTR programs award federal grants to small businesses that focus on research and development — grants are designed to encourage innovation through high-tech advancements. Depending on the program, businesses may receive between $50,000 and $750,000 in funding. These programs aim to support the development of socially and economically disadvantaged small businesses.
Who qualifies? Your business must be at least 50% owned and run by a U.S. citizen or permanent resident. It must have fewer than 500 employees and operate for profit.
How can I apply? All applicants must first register with the SBIR. Each grant has its own application process, but you’ll likely need to submit a lengthy grant proposal.
3. USDA Rural Business Development Grants
To encourage economic development and job creation in rural areas, the U.S. Department of Agriculture (USDA) created the Rural Business Development Grant program to encourage economic development and job creation in rural areas. Generally, grants range from $10,000 to $500,000 and are designed to provide technical assistance and training for rural small businesses.
Who qualifies? Your business must have fewer than 50 employees and have less than $1 million in annual revenue. Additionally, it must serve a qualifying rural community with a population under 50,000.
How can I apply? You’ll need a Unique Entity ID number from Sam.gov to apply for a USDA grant. Applications are accepted annually at state and local USDA chapters, typically in late February.
Additional resources for minority-owned businesses
Small business owners face many challenges when launching or growing their ventures, including finding customers, hiring talented employees and developing brand awareness.
“An undercurrent to each of these challenges, however, is access to affordable capital,” said Warren Galloway, Jr., founder of the National Microloan Conference. “When entrepreneurs have ample financial resources to support their business, the pressures of these challenges are somewhat alleviated, allowing space for strategic and measured decision-making.”
The following resources are designed to help minority entrepreneurs navigate funding and growth challenges:
- National Minority Supplier Development Council (NMSDC): This group aims to serve as a growth engine, connecting minority entrepreneurs with networking programs and educational opportunities. It can also help you access funding contracts or new business opportunities.
- Minority Business Development Agency (MBDA): This federal agency is focused on the growth of minority-owned businesses. The MBDA operates business centers, offers business development programs and aims to provide access to capital, contracts and new markets.
- Small Business Development Centers: The SBA runs almost 1,000 centers around the county, where you can find help creating a business plan, writing a grant proposal or applying for financing. Use the SBA’s location tool to find your local center.
- SBA 8(a) Business Development program: Run by the Small Business Administration (SBA), this program gives socially and economically disadvantaged business owners access to mentorship opportunities, training and one-on-one business assistance. This program doesn’t provide funding — it trains entrepreneurs to improve their ability to access funding in the future.
- SCORE: This is a great organization for any small business to consider, but SCORE also has dedicated resources for minority entrepreneurs. For example, this nonprofit provides Black business owners with workshops, mentorship programs and networking events that address their specific challenges.
- Operation HOPE’s 1 Million Black Businesses: Operation Hope aims to inspire the launch of new Black-owned businesses through affordable small business loans and grants. Participants can also access business coaching, an eight-week business development workshop and various educational resources.
- Gold House Ventures: Startups with an Asian Pacific founder or co-founder can qualify for funding, networking programs and educational resources. It also hosts an accelerator program that includes a $250,000 investment and additional fundraising support.
Alternatives to small business grants
Small business grants can provide much-needed funding without the obligation of repayment, and many programs also come with mentorship or training opportunities. However, you’ll have to compete for each opportunity, which can be time-consuming with no guarantee of success. In addition to applying for grants, consider the following alternatives to finance your business:
- Small business loan: These are typically available at banks, credit unions and online lenders. To apply for a small business loan, you’ll need to meet certain eligibility requirements, including a minimum time in business, annual revenue and personal credit score. The best small business lenders offer competitive interest rates and accessible credit requirements.
- Business line of credit: While a small business loan provides a lump sum of cash, a business line of credit provides access to revolving debt, similar to a credit card. You can access funds as needed (up to a preset borrowing limit) and repay as you go.
- Business credit card: If you want a simpler way to pay for business purchases, you might consider a business credit card. Although interest rates can be high if you don’t repay the full balance each month, credit cards make it easy to track your spending and earn rewards.
- SBA microloans: If you’re just starting out, consider an SBA microloan. These smaller-dollar loans (up to $50,000) often have relaxed eligibility criteria.
- Crowdfunding: Some businesses have had success with crowdfunding with platforms like Kickstarter to connect with potential customers and raise money.
Frequently asked questions (FAQs)
The SBA’s federal partner, the U.S. Department of Commerce, operates the Minority Business Development Agency. This agency advocates for business owners who belong to a “socially disadvantaged group,” including (but not limited to) Black, Hispanic, Indigenous, Asian and Pacific Islander business owners. The SBA considers “racial or ethnic prejudice or cultural bias” when classifying minority groups.
With most grant opportunities, you can apply for more than one at a time. But some grant programs only consider applicants who haven’t received other grants, so review the program’s terms and conditions.
Yes, there are several business grants for women in minority groups. Some examples include the Black Girl Ventures Pitch Competition, the CCWC Women of Color Entrepreneurs Grant and the CEI Vanguard Accelerator program.
There are more than $500 billion available in federal grants each year, but they’re very narrowly focused and the application process is rigorous. Start your search for federal grants at Grants.gov, and check with your local Chamber of Commerce for information on state and local government grants.
