If you’re a minority entrepreneur looking to grow your business, finding reliable grants for minority-owned businesses can make all the difference. These programs are designed to help level the playing field, offering much-needed capital to expand operations, purchase equipment, or hire new staff—without the burden of repayment.
Access to funding is one of the biggest challenges for minority-owned businesses. According to the Minority Business Development Agency (MBDA), minority enterprises generated or safeguarded nearly 19,000 jobs in FY 2023 and helped facilitate over $1.5 billion in capital. That’s a clear sign of how impactful dedicated funding can be.
Unlike loans, grants don’t need to be repaid. They’re often provided by government agencies, corporations, or nonprofits that want to encourage business diversity and community impact. The key is knowing where to look, how to qualify, and how to apply effectively.
A business typically qualifies as minority-owned when at least 51 percent of ownership, operation, and control belong to individuals from recognized minority groups—such as African American, Hispanic/Latino, Native American, or Asian American communities. Some grants target specific groups, so always review eligibility criteria closely.
While grants provide free capital, they’re highly competitive and often require detailed proposals and reporting.
Loans must be repaid with interest but offer more flexibility.
Government contracts are another option for certified minority-owned firms, helping them gain access to federal spending opportunities through programs like the 8(a) Business Development Program.
For reference, the SBA clarifies that while the federal government doesn’t usually offer startup grants, it does provide resources, certifications, and contracting programs for minority entrepreneurs
Before applying, make sure your business meets general eligibility requirements. These often include:
Verified minority ownership (51 %+).
Legal U.S. registration and good standing.
Minimum time in operation (usually one year).
Demonstrated business plan and clear funding use.
Also, keep in mind that most grants are taxable income.
To stand out, you’ll need to prepare your application carefully. The following quick-reference list (optimized for featured snippets) summarizes what to do:
Steps to apply for a minority-business grant:
Identify your funding needs and goals.
Verify that you meet all eligibility requirements.
Research grants that align with your mission or industry.
Gather key documents (ownership proof, business plan, financials).
Write a clear, concise application explaining your impact.
Submit before the deadline and follow instructions exactly.
Track your results and report how funds are used.
MBDA Grants – The Minority Business Development Agency offers grants and cooperative agreements to strengthen minority business enterprises.
SBA Programs – While the Small Business Administration doesn’t directly fund grants for startups, it provides certifications and access to contracting opportunities for socially and economically disadvantaged businesses.
Grants.gov – The go-to database for federal funding programs across agencies. Search using filters like “minority business,” “small business,” or your industry to find relevant options.
NAACP Grants – The NAACP supports Black-owned businesses through programs like the Powershift Entrepreneur Grant (up to $25,000) and micro-grants for certification assistance.
Wish Local Empowerment Program – Offers $500–$2,000 grants to help Black-owned brick-and-mortar shops boost visibility and growth.
Freed Fellowship Grant – Provides a $500 monthly micro-grant to entrepreneurs of color and women founders, plus business mentorship.
PepsiCo Juntos Crecemos Program – Supports Hispanic-owned food and beverage businesses with $10,000 grants and coaching.
LegalZoom’s Minority Business Grant List – A regularly updated resource highlighting 20–30 current grant options nationwide.
NerdWallet’s Small Business Grants for Minorities – Curated database of both micro and large-scale grants up to $30,000.
Tell your story. Grant reviewers want to understand your mission, impact, and the “why” behind your business.
Be specific. Detail how the funds will be used and what measurable outcomes you expect (e.g., hiring new employees, expanding a product line).
Stay organized. Keep a digital folder with all required documents—financial statements, tax returns, and certifications.
Apply strategically. Focus on programs that align with your values or industry rather than applying to everything.
Follow up. If you’re denied, ask for feedback and re-apply next cycle with improvements.
Skipping eligibility fine print.
Submitting incomplete or late applications.
Using a generic template without customizing to the grant’s mission.
Failing to include a clear budget or timeline.
Neglecting post-award reporting requirements.
Avoiding these pitfalls can dramatically increase your chances of securing funding.
If you’re serious about securing funding, the next step is preparation. Choose a few grants that align with your mission, organize your documents, and craft a powerful application that highlights your story and community impact.
Stay proactive—many grant programs renew annually, so setting alerts and joining newsletters for the MBDA or NAACP can help you catch deadlines early.
Grants for minority-owned businesses can be life-changing when approached with the right strategy. They don’t just provide funding—they help close opportunity gaps, build community impact, and support long-term sustainability.
By staying informed, preparing early, and applying strategically, you’ll put your business in the best position to access funding that accelerates growth and strengthens your legacy.