Black business owners and entrepreneurs often face challenges in getting funding for their businesses and startups. According to NerdWallet, BIPOC applying for business loans were more often asked to show way more documentation, from income verification to tax documents, bank accounts, and business assets in comparison to white applicants.
Indeed, the racial funding gap between Black-owned businesses and their counterparts, unfortunately, affects the productivity and growth of minority businesses. Due to the lack of loan opportunities for Black-owned businesses, the need and search for alternate funding opportunities are on the rise. AAG is committed to helping minorities bridge the racial funding gap by ensuring that we provide information that can help minority businesses access grants to start and grow their businesses.
In this article, we shall be exploring grants that you can apply for as a Black-business owner who is looking for funding opportunities to grow your businesses. It is important to understand the difference between the different funding options there are out there. As a business owner, you may have to make the decision between applying for a business loan or a grant. Whatever the option you choose to explore, know that we have resources to help you make an informed decision for your business growth.
Once you are fully aware of what type of funding your business needs, it is important to look at the funding option from different angles, particularly how the funding is going to contribute to your business growth. Taking your time to understand your funding options can help you stay prepared for when you eventually apply to get the funding that you need for your business. The racial funding gap also applied to the situation with PPP loans approved but not funded, as was the case with many Black-owned businesses.
Business Funding Options
What types of funding are available out there for businesses? Well, depending on what type of business you run, you have options. You can go to your bank and speak to the bank loan department, and get information as to how you can get a business loan. Bear in mind that loans come with a list of documentation and repayment plan requirements, and other eligibility requirements that you have to meet to get funded.
Unlike a business grant, you do not have to repay the funds you are awarded. You get to decide how you wish to utilize your grant funds when you have been successfully funded. The process of applying for a business grant may involve different stages of the application process, which may involve having a business plan, a grant proposal, and prospective business partnerships in many cases. Business funding options go beyond same-day funding loans, but a sustainable program that you can go back to time and again.
Now that you understand the two major funding sources that are available to you as a business owner, it’s time to look at how you can go about applying for these funding opportunities. It is important to understand the differences in the type of funding option you choose to go with. If a grant funding option is what works better for your business, then finding the different grant opportunities out there can help you in applying for the ideal grant for your business.
11 Grants for Black-Owned Businesses
AAG has compiled a list of grants that you can apply for as a new business owner that can help you make a difference in your business. The first step to getting funding is to ensure that you meet the grant eligibility criteria needed to get the ideal funding that you need. Once you have confirmed that you meet the grant eligibility criteria, the next step is to start applying right away.
1. $30,000 Grant to Improve African American Quality of Life
Mental health concerns are growing by the day, and grant-issuing agencies are rising to the occasion by providing resources and grants to help African Americans that can help them get the necessary support they need for mental health. The process of applying for this grant program is one that can be easily processed once you are fully aware of the criteria that the grant requires for you to get successfully funded.
2. $25,000 United Way Grants for Underserved Community
The challenges that small businesses face when it comes to accessing grant funding are not just about the immediate access to funds to start or grow a business, but being able to maintain a way of giving back. This grant program is focused on creating opportunities for underserved communities, and hopefully, creating a sense of belonging for those who are part of the program.
Conclusion
Now that you have an understanding of the different sources of funding that are available to you as business owners, remember you have access to support and resources to help you every step of the way. If you would access to more grant options, you can schedule a consultation with AAG, and one of our grant consultants will reach out to you to see what grant options you can get for your business.