Grants for Minority Owned Businesses
Federal Programs: MBDA and SBA
The Minority Business Development Agency (MBDA), part of the US Department of Commerce, is the only federal agency dedicated specifically to the growth and competitiveness of minority-owned businesses. The MBDA operates a network of business centers across the country that provide consulting, capital access assistance, contract procurement support, and connections to grant and loan programs. MBDA business centers do not typically award grants directly, but they help minority business owners identify and apply for grants from other federal, state, and private sources. The consulting services themselves, including business plan development, financial analysis, and market research assistance, are provided at no cost and have real monetary value.
The SBA's 8(a) Business Development Program is not a grant, but it is the single most valuable federal resource for minority-owned businesses. The program provides a nine-year runway of business development assistance, including access to sole-source and set-aside federal contracts. Participants can receive federal contracts up to $4 million for goods and services and $7 million for manufacturing without competing against non-8(a) firms. For businesses that sell products or services the federal government purchases, 8(a) certification can generate millions in revenue over the program period. Eligibility requires that the business is at least 51% owned by a socially and economically disadvantaged individual, has been in business for at least two years, and meets SBA size standards. Our minority business certification guide covers the application process.
The SBA also operates a HUBZone program that benefits businesses located in Historically Underutilized Business Zones, many of which are majority-minority communities. HUBZone certification provides access to set-aside federal contracts and a 10% price evaluation preference in full and open contract competitions. Community Development Financial Institutions (CDFIs), which receive federal funding to serve underserved communities, provide microloans and sometimes grants to minority-owned businesses that cannot access traditional bank financing.
Corporate Grant Programs
Major corporations have significantly expanded grant programs for minority-owned businesses in recent years as part of broader diversity, equity, and inclusion commitments. These corporate grants often provide faster funding with simpler applications than government programs, though they tend to be highly competitive because of extensive publicity.
Google for Startups provides equity-free funding, mentorship, and access to Google's technology and network for founders from underrepresented communities. The Black Founders Fund has awarded millions in non-dilutive funding to Black-led startups across the US, Latin America, Europe, and Africa. The Latino Founders Fund provides similar support to Hispanic entrepreneurs. Selected founders receive cash grants typically ranging from $50,000 to $100,000 along with cloud credits, advertising credits, and mentorship.
Comcast RISE (Representation, Investment, Strength, and Empowerment) provides grants, technology makeovers, and marketing support to small businesses owned by people of color. The program has awarded over $100 million in grants, technology, and marketing services since its launch. Grants include cash awards, Effectv advertising media, and technology upgrades including hardware, software, and connectivity services. Applications are accepted on a rolling basis through the Comcast RISE website.
Hello Alice operates a grant marketplace that aggregates grant opportunities from multiple corporate partners. Small business owners create a profile on the Hello Alice platform, and the system matches them with grant programs they qualify for. Corporate partners including Progressive, T-Mobile, and others fund grants ranging from $5,000 to $50,000. The platform is free for small business owners and provides application assistance and community resources beyond grant matching.
The National Minority Supplier Development Council (NMSDC) connects minority-owned businesses with corporate members (Fortune 500 companies and their equivalents) for procurement opportunities. While the NMSDC does not directly award grants, its certification opens access to corporate supplier diversity programs where major companies actively seek minority-owned suppliers. Many NMSDC corporate members also run their own grant programs for certified minority suppliers. NMSDC certification requires that the business is at least 51% owned, operated, and controlled by a minority group member (African American, Hispanic American, Asian American, or Native American).
Foundation and Nonprofit Grants
The National Association for the Self-Employed (NASE) offers quarterly Growth Grants of up to $4,000 to members, and its membership includes many minority entrepreneurs. The grants fund specific business needs like equipment, marketing, technology, or inventory, and the application is relatively simple compared to government programs.
The Fearless Fund focuses specifically on women of color entrepreneurs, providing grants and venture capital investments to bridge the funding gap for this doubly underserved demographic. The First Nations Development Institute provides grants to Native American entrepreneurs and tribal enterprises through various programs funded by federal agencies and private foundations.
The National Urban League operates an Entrepreneurship Center that provides training, mentoring, and access to capital for minority entrepreneurs in urban areas. Local Urban League affiliates may administer their own grant programs or connect businesses with local funding sources. The US Black Chambers of Commerce and the United States Hispanic Chamber of Commerce similarly provide resources, networking, and access to funding programs through their national and local chapter networks.
State and Local Programs
Many states and cities operate grant programs specifically for minority-owned businesses that receive less competition than national programs because awareness is lower. New York City's Minority and Women-Owned Business Enterprise (M/WBE) program provides certification that opens access to city contracting set-asides and various loan and grant programs. California's Small Business Development Centers provide specialized programs for minority entrepreneurs. Illinois, Michigan, Pennsylvania, Georgia, and Texas all have state-level minority business development programs that include grants, low-interest loans, and technical assistance.
City governments in major metropolitan areas often administer microgrant programs specifically for minority-owned businesses in underserved neighborhoods. These grants typically range from $1,000 to $10,000 and fund specific needs like storefront improvements, equipment purchases, or digital marketing. The application processes are usually simpler than state or federal programs, and competition is limited to businesses in the geographic area. Contact your city's economic development department and ask about minority business programs, or visit your nearest SBDC or SBA district office for guidance on local programs.
Getting Certified
Certification as a minority-owned business is not required to apply for most grants, but it opens doors that remain closed to uncertified businesses. The three most valuable certifications are the SBA 8(a) certification for federal contracting, NMSDC certification for corporate supplier diversity programs, and your state's minority business enterprise (MBE) certification for state and local contracting and grant programs.
Each certification has its own application process, eligibility requirements, and renewal timeline. The SBA 8(a) certification requires that the business be owned by a socially and economically disadvantaged individual, have a personal net worth under $850,000, and demonstrate good character and potential for success. NMSDC certification requires minority ownership of at least 51% and an on-site visit to verify the business operations. State MBE certifications vary by state but generally require proof of minority ownership, control, and management. Our minority business certification guide walks through the process for each certification.
Building a Funding Strategy
The most effective approach combines multiple funding sources rather than relying on any single grant. Apply for corporate grants through Hello Alice and individual corporate programs, connect with your local MBDA business center for federal and regional opportunities, pursue certification for contracting set-asides, and maintain relationships with SBDC counselors who know the local grant landscape. Grants provide valuable capital, but they should be part of a broader funding strategy that may also include business loans, business credit lines, and revenue from operations.