Black-owned businesses havenot had equalaccess to financial capital compared to their white counterparts in the US. According to the Minority Business Development Agency,racial discriminationand unfair lending practices are among the reasons for this disparity. This is why grants can be especially helpful to Black business owners.
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What are grants?
赠款资金的机会,通常设置苏ms of money, issued by a variety of givers, including local, state, or federal governments. Grants also are awarded by private organizations, such as corporations, or through public/private partnerships. By definition, grants do not have to be paid back and are not consideredsmall-business loansor forgivable loans. However, there might be stipulations on how grant money is used by each recipient.
In this case, the criteria for asmall-business grantcan include being Black-owned. Typically, each small business may be required to meet additional grant requirements. For example, a business might need to be located in a particular county or state, have a certain number of employees, have a social impact angle baked into its model, embody a certain set of values, require a minimum or maximum gross revenue, or have a founder from a specific demographic.
Grants are not always well publicized and may have short application windows. You can learn about these opportunities by networking with fellow small-business owners and tapping resources from organizations and agencies like theMinority Business Development Agency (MBDA),America’s Small Business Development Center Network,Hello Alice,theUS Small Business Administration(SBA), and theNational Minority Supplier Development Council (NMDC).The SBA also powers programs like theSmall Business Innovation Research(SBIR), dispersing federal grants through other federal agencies, such as NASA and the Environmental Protection Agency (EPA), among others, to help close thefunding gapfor underrepresented founders.
Five types of grants
- Lump sum grant
- Grants for specific use
- Grants as a workshop or incubator
- Pitching competitions
- Grants through services
Black and minority small-business grants can take several forms, such as a set dollar amount wired to a business’s bank account, or being linked to required participation in a workshop or program. Here are some examples of types of grants forBlack entrepreneurs:
- Lump sum grant.Some small-business grants are a set amount of dollars and given in one payment—with no strings attached.
- Grants for specific use.A small-business owner might win a $15,000 grant but will have to allocate the money toward specific parts of the business, as determined by the giver—perhaps for scaling-up production, reducing the business’s carbon footprint, or completing a social impact project within a certain timeline.
- Grants as a workshop or incubator.Grants are often given to founders and business owners in conjunction with winning a spot in a cohort, requiring them to participate in business development programs or accelerators that support early stage startups. Grant money might be in the form of capital investment or cash.
- Pitching competitions.Pitching competitionsare popular in the tech sector and other industries like wellness and health, and food. Prize money is awarded to entrepreneurs who give savvy business pitches to public or private audiences. These grants might be in cash, capital investment—or both.
- Grants through services.Grants can take the form of free services, such as $5,000 worth of marketing or technical assistance, legal services, or time in a co-working space or community kitchen.
What is a Black-owned business?
For many business owners, it might seem self-evident: a Black-owned business is one whose leaders, founders, or owners are Black. Therefore, they are a Black-owned business. But what about when there are multiple business owners, a parent company, or investors holding a majority stake that are of different races or mixed-race?
Each grant may have its own definition of a Black-owned business, but it basically boils down to this: Being Black-led. According to a 2011 US Census BureauSurvey of Business Owners:Black-owned businesses are “firms in which Blacks or African-Americans own 51 percent or more of the equity, interest or stock of the business.” When grant programs are open to minority business owners, or entrepreneurs of color, it typically means 51% of the business is owned by someone who is Black, Asian-Indian, Asian-Pacific, Latin, or Native American, or belongs to a combination of such groups.
What are grants for Black business owners?
Grants for Black business owners are给予相对应的人rtunitiescreated specifically for Black entrepreneurs and Black-owned businesses by both the US government and private organizations. These private and federal funding opportunities are opening the doors to minority grants, which can help Black businesses grow and succeed, and be a stepping stone to closing theBlack-white wealth gap.
Today’s Black-owned businesses have a better chance of accessing capital andbusiness financing,due tolegislationlike the Equal Credit Opportunity Act,Black-led CDFIs(Community Development Financial Institutions), andincreased supportfor minority business development.
13 grants for Black business owners
- Keep It Local Business Fund
- PowerShift Entrepreneur Grants
- Wish Local Empowerment Program
- The NBMBAA Scale-Up Pitch Challenge with Collegiate Edition
- Backing the BAR
- Back Black Businesses
- Fast Break for Small Business
- Galaxy Microgrants
- Black Founder Startup Grants
- 大前锋小企业赠款
- Kinetic Business Black Business Support Fund
- Comcast RISE Innovation
- Oakland Black Business Fund
Applying for small-business grants can be a rigorous process involving gathering tax returns, bank statements, and revenue documentation. To make sure your application qualifies, check that your business satisfies the grant’s requirementsbeforefilling out and submitting the application.Remember, once you’ve assembled one grant application, it becomes easier to apply for future grant opportunities.
Here is a list of grants—or entities awarding grants—for Black business owners, including information about eligibility, application processes, and sponsoring organization.
1. Keep It Local Business Fund
The NAACP and Nextdoor Kind Foundation teamed up to create theKeep It Local Business Fund,a $5,000 microgrant awarded to entrepreneurs of color. In addition to the minority business grants, business owners have access to training materials and are promoted onNextdoor. The grant includes specific criteria, including businesses that arecommunity focused, and has gross annual revenue of less than $1 million. There is an online application process.
2. PowerShift Entrepreneur Grants
Twenty Black entrepreneurs have a chance at winning $25,000 to grow their businesses through this NAACPPowerShift Entrepreneurgrant, with support fromShark Tank’s Daymond John. In addition to the grant funding, each entrepreneur receives mentorship and brand visibility. Applications are typically open in early to mid-October.
3. Wish Local Empowerment Program
Wish Local is an ecommerce platform that enables physical pick-ups and delivery of online purchases. Wish Local created a $2 million fund to issue $500 to $2,000Wish Local Empowerment赠款Black-owned, brick-and-mortar small businesses that are Wish Local partners. The grant is flexible on the use of funds. Additional grant criteria include having average yearly revenue of less than $1 million and joining Wish Local (it’s free) if awarded a grant.
4. The NBMBAA Scale-Up Pitch Challenge with Collegiate Edition
The annualNBMBAA Scale-Up Pitch Challengeawards startups prizes of $50,000, $10,000, $7,500, or $1,000 from the National Black MBA Association. This competition enables startups to connect with early stage investors andventure capitalists(VCs). The newly launched collegiate edition awards entrepreneurial college students a top prize of $50,000. Eligibility includes being Black founded and a team member with an active NBMBAA membership.
5. Backing the BAR
The NAACP and Bacardi partnered to create $10,000Backing the BARgrants for Black-owned businesses in the hospitality industry with liquor licenses (or seeking one). In addition to the money, grant recipients have access to education and business support in order to accelerate their businesses. Applications are typically open from mid-June to late July.
6. Back Black Businesses
The Coalition to Back Black Businesses, which has a partnership with Shopify, is a collective of companies that issue $5,000Back Black Business赠款Black-owned small businesses located ineconomically vulnerable communities. Businesses must also have been impacted by the pandemic, have three to 20 employees, and work in specific sectors. (The types of businesses not eligible are listedhere.) Grantees also receive mentorship from successful business owners, as well as training. Select applicants will be awarded an additional $25,000 enhancement grant.
7. Fast Break for Small Business
The NBA, WNBA, NBA G League, LegalZoom, and the Accion Opportunity Fund have teamed up to give small-business owners $10,000Fast Break for Small Businessgrants. Winners will also have access to free LegalZoom services. Applications are open during the 2022–2023 NBA season.
8. Galaxy Microgrants
The membership-driven resource platformGalaxy of Stars, which supports minority small business owners (along with the organization that empowers low-income and minority-owned small businessesHidden Star), gives awayGalaxymicrogrants every year. A brief application process requests basic information like contact info, ethnicity, and whether you are a current or future business owner. It also promotes grant opportunities through its social media.
9. Black Founder Startup Grants
The global entrepreneur and investing platform SoGal has been working with companies like Walmart, Verizon, and the clean makeup brand Winky Lux, among others, to give $5,000 and $10,000Black Founder Startupgrants on a rolling basis. The grants are for Black women and non-binary entrepreneurs who have a scaleable, high-impact startup idea, with “the ambition to be the next billion dollar business.” Theapplicationis a brief online form.
10.大前锋小企业赠款
Vistaprint, the Boston Celtics Shamrock Foundation, and the NAACP have joined forces to issue $25,000Power Forward Small Businessgrants for Black-owned small businesses located in Massachusetts, Maine, New Hampshire, Rhode Island, Vermont, and select areas in Connecticut. Grant recipients will also receive design and marketing support. Applications are accepted on a rolling basis until the $1 million fund has been exhausted.
11. Kinetic Business Black Business Support Fund
Arkansas-based Kinetic Business, a fiber internet company by Windstream, is offering up to $2,500 inBlack Business Support Fundgrants for Black-owned small businesses in their service area. Grant eligibility includes being a small business (no more than 25 employees) and a for-profit, with restrictions on industry. Click the Check Availability button on thispageto see if your business is in the service area of eligibility.
12. Comcast RISE Innovation
Comcast NBCUniversal is issuing $10,000 grants from theComcast RISE Investment Fundto 100 small businesses owned by people of color. Businesses must be located in Chicago, Miami, Oakland, Seattle, or Washington, DC. Beyond money, the grant provides technology, media, and marketing support. After confirming eligibility, you can apply online.
13. Oakland Black Business Fund
加州奥克兰的商铺apply for grants through the nonprofitOakland Black Business Fund(OBBF), in partnership with Community Bank of the Bay and the nonprofit Alliance for Community Development, among others. It offers grantees access to businessgrowth strategiesby providing financial capital and technology assistance. There is a short online application process. The granted amounts are not publicized on the OBBF website.