As we celebrate Black History Month, we are currently in the midst of a global pandemic. COVID-19 has hit small businesses hard, including Black-owned businesses. In a 2020 report from the Brookings Institute, findings revealed Black-owned businesses receive a third less capital. They struggle to raise private investments from mainstream investment systems.
One of the best resources for Black business owners to find financial funding is by applying for a grant. Grant programs are available through government agencies. Grants are available on the state level. Grants are awarded to businesses in need. These programs help resolve problems. Some of these include funding for operations and creating jobs. In addition, grants give businesses the necessary support to grow within their industry.
Which grants can Black business owners apply for in 2021? Check out our list below. Firstly, these grants are currently accepting rolling applications. You may also learn about grants that may open later in 2021. Finally, explore additional business resources. In conclusion, learn how MyCorporation can help you out!
Minority Business Development Agency (MBDA)
The Minority Business Development Agency (MBDA) is a federal agency in the United States. It promotes the growth and competitiveness of minority-owned businesses. Their vision is economic prosperity for all American business enterprises.
In addition, MBDA provides videos for grant applications. These videos outline the step-by-step process for applying for the MBDA Grant Competition.
The National Association for the Self-Employed (NASE) Growth Grants Program
If you need $4,000 to help your business grow, try applying for a grant through the National Association for the Self-Employed (NASE).
Since 2006, the NASE has awarded nearly a million to members of the NASE. These awards have been part of the NASE Growth Grants program. Black business owners are eligible to apply. In addition, so may applicants that are active NASE members in good standing. Applicants must demonstrate a business need that may be fulfilled by the grant. In addition, they need to provide a detail explanation of how they will use the grant’s proceeds. This must show how this grant will improve business growth.
Applications are reviewed on a quarterly basis. For example, let’s say you file an application in January, February, or March. As such, it will be reviewed by NASE for grant consideration in April.
The USDA Rural Business Enterprise Grant Program
What resources are available to Black business owners in rural areas? They may apply for the USDA’s Rural Business Development Grants.
These are programs that provide technical assistance and training for small, rural businesses. The grants include enterprise grants and opportunity grants. Eligible areas may include rural areas or towns. For example, these towns must be outside of any city with a population of 50,000 or more residents.
Moreover, funds from this grant may be used for several areas. This includes training and technical assistance. In addition, these funds cover acquisition or development of land. Meanwhile, this grant pays for distance adult learning for job training, and rural transportation improvement.
The Community Development Financial Institutions (CDFI) Fund
What is the vision of the U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI)? It is an America in which all people and communities have access to resources. This includes the investment capital and financial services they need to prosper.
The CDFI Fund focuses on expanding economic opportunity for underserved people. This includes Black business owners. Their Capital Magnet Fund offers competitively awarded grants. These help finance affordable housing solutions for low-income people. Moreover, this serves low-income communities across the nation. The CDFI provides Black business owners with information about local financial institutions in their respective areas.
NAACP | Backing the B.A.R.
The NAACP has teamed up with BACARDI to support Black-owned businesses. They are supporting those in the beverage alcohol service, sales, and hospitality industries.
The Backing the B.A.R. grant encourages Black business owners with a liquor license or real liquor license aspirations to apply for a grant. Grantees will receive a grant of $10,000 dollars. In addition, they will receive support in accelerating their business in the future.
Black Founder Startup Grant | SoGal
The SoGal Foundation believes Black entrepreneurs matter. However, Black women entrepreneurs receive less than 0.5% of venture capital funding. This is not enough to grow a business. Therefore, the SoGal team is stepping up to provide support now.
The Black Founder Startup Grant provides $10K and $5K cash grants to Black women or nonbinary entrepreneurs. Applications are accepted on a rolling basis. New grantees are awarded at the end of each month. Eligibility requires applicants to self-identify as a Black women or Black nonbinary entrepreneur. You must have a legally registered business. Your business must plan to seek investor financing to scale. In addition, the startup needs a scalable idea. You should have the ambition to be the next billion-dollar business.
The Lemon-AID Foundation
Created by Marcus and Bobbi Lemonis, The Lemon-AID Foundation provides “extra juice.” This aid goes to underserved communities and small businesses. This includes offering loans and equity investments. The foundation makes grants available to women and minorities in the small business space.
Meanwhile, check in with these popular grants for upcoming application openings in 2021.
- The Local Initiatives Support Corporation (LISC) Small Business Relief Grants
- FedEx Small Business Grant Contest
- Scale-Up Pitch Challenge — NBMBAA
- Rebuildtheblock Corp.
- Coalition to Back Black Businesses
One of the most trustworthy search engines for grants is Grants.gov. This website provides business owners with resources to learn about grants.
For example, individuals may learn about grant programs and eligibility. Grants.gov teaches applicants how to apply for a grant. Moreover, use the search tool. This allows you to look up grants.
Federal government agencies that have minority business grants share these listings on Grants.gov. Through Grants.gov, you may find over 1,000 grants from various organizations and learn about their application deadlines.
Small Business Administration (SBA)
The U.S. Small Business Administration (SBA) offers plenty of resources. These resources are for entrepreneurs and Black-owned businesses.
Grants are available as part of the SBA’s government grants. For instance, these include the State Trade Expansion Program (STEP). SBA associated awards are also included as grants. Moreover, learn about the SBA’s funding programs. These include loans, investment capital, disaster assistance, and surety bonds.
Apply for a Small Business Loan
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Do you need assistance with your small business? Reach us at mycorporation.com or call us at 1-877-692-6772.