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Minority-owned businesses can apply for federal, private, and nonprofit grants to receive benefits including funding, mentorship, and networking opportunities.
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Although the number of minority-owned businesses continues to grow, access to funding hasn’t kept pace with this growth. The Federal Reserve Banks’ Small Business Credit Survey shows that fewer than 35% of Black, Asian, and Hispanic business owners secured the full amount of funding they applied for, compared with more than half of white business owners. This gap underscores why grants and other funding resources remain so important for minority entrepreneurs.
This guide covers essentials on grants for minority business owners—where to find opportunities, how to strengthen your applications, and which programs offer the best combination of funding and support.
Minority business grants are funding or resources awarded to help underrepresented entrepreneurs build and grow their businesses. Grants, which do not need to be repaid, are usually offered by private companies, nonprofit organizations, and government agencies as part of broader funding programs, and can provide direct financial assistance, as well as in-kind support (e.g., mentoring, professional development, exposure, networking opportunities). Many grants include restrictions on how funds can be used, and some require participation in specific programs or commerce platforms.
The term “minority business” carries different meanings across different programs:
Most business grants involve competition—you’ll submit detailed applications alongside other entrepreneurs seeking the same funding. Some opportunities also take the form of fellowship and mentorship programs, which emphasize networking and professional development, while others are pitch competitions, giving you the chance to present your business live for both funding and visibility.
Here are some tips that can help aspiring small business owners and existing small businesses find and apply for grants:
Here are four notable programs that provide funding and support for minority entrepreneurs. While most are traditional grants, some, like pitch competitions, also offer networking and visibility alongside financial awards.
The Freed Fellowship Grant awards monthly grants of $500 to small business owners, especially encouraging applications from minority, female, and other marginalized groups of business owners. Awardees are also given one year of access to Freed Studio, which helps them build and leverage their email lists, along with coaching support, business resources, and the chance to win an annual $2,500 grant.
While the Pathway to Opportunity Competition began as a pitch competition specifically for Black entrepreneurs, the program has recently expanded its eligibility and welcomes all minority business owners to compete. Each annual competition brings together participants to compete in two live pitch contests, with the chance to win cash awards and receive free networking and exposure. This opportunity is for business solutions, not consumer products.
The Galaxy Grant is offered by the nonprofit Galaxy of Stars, a resource network for women and minority businesses. It supports small business owners at any stage of their journey, from aspiring entrepreneurs thinking about starting a business to experienced owners with established businesses. Applications are accepted only from individuals who have created a free or paid Galaxy of Stars membership account.
TRANSFORM offers business grants with the explicit goal of wealth redistribution, awarding small grants to minority-owned businesses that make a meaningful social impact. In addition to a small grant award, the TRANSFORM Business Grant offers one year of mentorship and development coaching. Preference is given to small businesses in financial need that share TRANSFORM’s social values and commitment to antiracism.
These programs provide funding and support tailored to women-owned small businesses.
WomensNet, a female entrepreneurship foundation, awards three Amber Grants each month: one open to all women-owned businesses (including nonprofits), one for startups, and one in a rotating category such as health and fitness and STEM. At the end of the year, three grant recipients are selected for additional $25,000 grants.
The EmpowHer Grants program is an initiative of The Boundless Futures Foundation, offering support to women-owned eligible small businesses. The businesses must demonstrate social impact in poverty and hunger, sustainability and the environment, or strong communities. Recipients also participate in professional training programs. Funding is distributed as reimbursement for business-related expenses.
Grant amount: More than $30,000 in total cash prizes
Eligibility: Under-resourced female founders in the US with revenue-generating businesses
Deadline: Varies (based on event schedule)
The BGV Pitch Program, sponsored by the Black Girl Ventures Foundation, is a multicity pitch competition for women business founders, where competitors receive pitch coaching and support as they develop a two-minute pitch before a live audience. BGV Pitch events are held throughout the year in major US cities, where audiences are invited to contribute to crowdfunding campaigns for the founders whose pitch they favor.
The female entrepreneurship community HerSuiteSpot offers monthly HerRise MicroGrants, supporting women-owned small businesses. While all women business owners are eligible, under-resourced women and women of color are particularly encouraged to apply. Nonprofits, franchises, and direct sellers are ineligible for the grants.
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These programs provide funding and support for LGBTQ+ business owners, with some also emphasizing mentorship and visibility.
The nonprofit Queer Business Alliance awards QBA Microgrants to small businesses owned by LGBTQ+ entrepreneurs. Awardees also receive access to volunteer expert advisers for a wide range of development support, and the Queer Business Alliance may help publicize their business.
The National Pride Grant for LGBTQIA+ Small Businesses awards 25 eligible small businesses with $1,000 microgrants. Offered by Founders First CDC, one of the nation’s leading Community Development Financial Institutions (CDFIs), the grant program focuses on economic empowerment and increasing the number of LGBTQIA+ businesses with revenues exceeding $1 million.
The ROMBA Startup Pitch Competition is a national pitch event organized by Reaching Out MBA (ROMBA) in partnership with StartOut. The competition features teams of LGBTQ+ and ally entrepreneurs, with prizes of up to $2,500. Participants must be current or graduated MBA students, with at least one member of the pitch team registered and attending the ROMBA Conference.
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Most grant programs require that minority business owners hold at least 51% ownership and control. The programs will specifically outline the communities eligible in the grant’s description, whether that’s Black-owned businesses, women-owned businesses, or disadvantaged businesses.
Minority-owned businesses can access a wide range of grants offered by private companies, nonprofit organizations, and government agencies. Examples include the Freed Fellowship Grant, EmpowHer Grants, and Queer Business Alliance Microgrants. Most of these opportunities are competitive and require an application, but they can provide both funding and professional resources to help businesses grow.
Minority-owned businesses can access a range of benefits, including eligibility for specific grant programs, certification through the SBA’s 8(a) program or the National Minority Supplier Development Council (NMSDC), and preference in some government contracting opportunities. Beyond funding, many programs also provide mentorship, training, networking, and educational resources that can help qualifying businesses grow and connect with new business opportunities.
Yes. Most grant programs are open to any eligible business structure—including LLCs, corporations, and sole proprietorships—as long as the business meets the ownership and revenue requirements. The key factor is who owns and controls the business, not its legal entity type.
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