It is important to note that the US Small Business Administration does not provide grants specifically for black businesses; rather, grants are provided to nonprofits, resource partners, and academic institutions that promote business growth via guidance and mentoring initiatives.
SBA is among the largest online business centers that offer details on business coaching and counseling, financing initiatives, and entrepreneurial development initiatives to minority business owners.
There are grants available to increase financial development in various black communities and to act as a no-debt, dilutive alternative for enterprises that do not wish to surrender control or go into liabilities to expand their operations.
The Small Business Administration of the United States uses its offices to ensure a level playing field for entrepreneurs and aspiring business owners who have traditionally had no significant exposure to wealth or economic opportunities. The SBA collaborates with non-profit agencies to provide guidance and mentorship to small businesses.
SCORE business mentors, Small Business Development Centers (SBDCs), Women’s Business Centers (WBCs), and Veterans Business Opportunity Centers are among the resource partners in this network (VBOCs). A number of resource partner service centers can be found at Historically Black Colleges and Universities (HBCUs) across the country.
Guidance and mentoring are provided by SBA resource partners to entrepreneurs at all stages. To encourage business growth, the SBA offers limited small business grants as well as grants to states and qualified community organizations.
SBA Resources Available to Black-Owned Businesses in 2023
Black-owned businesses have a much more difficult time obtaining capital to establish their enterprises. As a result, having grant opportunities and other financial support initiatives is critical. The SBA has resources available for black-owned businesses, and they include;
Table of Content
- 8(a) Program for Business Development
- SBA Emerging Leaders Initiative
- HUBZone Program
- Federal Partners
- SBA Mentor-Protégé Program
- The Coalition to Back Black Businesses
- Power Forward Small Business Grant
- The African-American Community Fund (AACF)
- National Black MBA Association Scale-Up Pitch Challenge
- Northwestern Mutual Black Founder Accelerator
8(a) Program for Business Development
The 8(a) Business Development program assists smaller companies that are socially and financially impoverished in growing by reducing competition for specific contracts, thus enabling them to become major contenders in the federal marketplace. Deprived business owners participating in the 8(a) program can:
- Vie for predefined and sole-source contracts in the initiative.
- Hire a Business Opportunity Expert to assist you in navigating federal contracting.
- Through the SBA’s Mentor-Protégé Program, form joint ventures with existing firms.
- Get leadership and technical help, such as entrepreneurial coaching, mentoring, marketing help, and high-level executive development.
- Vie for contract awards under a variety of socioeconomic initiatives as they become available.
- You should satisfy speciﬁc requirements and be certified before you can take part in the 8(a) Business Development program.
SBA Emerging Leaders Initiative
The Emerging Leaders Initiative is a high-level executive training program intended to speed up the development of high-potential small businesses in America’s disadvantaged and marginalized cities.
The program offers tailored instruction to C-level executives who have illustrated business viability. Participants develop a three-year strategic development action plan with benchmarks and operational efficiency targets to assist them in becoming self-sustaining enterprises that create jobs and communities.
Businesses in historically underutilized business zones are barred from competing for certain contracts by the government. The program aims to award at least 3% of federal contract dollars to HUBZone-certified companies each year.
The Minority Business Development Agency of the United States Department of Commerce is committed to the development and increasing competitiveness of business enterprises owned and managed by African Americans, Asian Americans, Hasidic Jews, Hispanic Americans, Native Americans, and Pacific Islanders.
SBA Mentor-Protégé Program
Via collaborations with much more seasoned enterprises, the SBA Mentor-Protégé Program allows qualified small businesses (protégés) to receive vital business development assistance and win government contracts (mentors).
Top Business Grant Sources for Black-Owned Businesses in 2023
Even though obtaining grants for Black-owned businesses or business grants for minorities may seem appealing, you must first understand where and how to apply online. Examine these resources before beginning your small business financial planning.
The Coalition to Back Black Businesses
This program was initiated in the fall of 2020 to assist Black-owned small companies in recovering from the global epidemic until the end of 2023. Each fall, $5,000 grants are dispersed to businesses that use them for business expenses. In addition to the $5,000 grant, honorees can vie for a supplemental $25,000 prize.
- Having a company of 3 to 20 people
- Be based in the United States, either physically or digitally (online).
- African Americans own 51% of the company.
How to Apply
- Check Eligibility
- Express interest
- Follow up during the application review period
- Get grant awarded
Power Forward Small Business Grant
This particular Small Business Grant program seeks to make a long-term difference by empowering Black-owned small businesses in New England. Vistaprint and the Boston Celtics according to reports have both made a $1 million joint commitment to the NAACP to gift impactful grants of $25,000 on a recurring basis.
Grant beneficiaries will be offered the opportunity to be showcased on national co-branded platforms, as well as receive advertising and concept resources designed specifically for them to help their company flourish and expand.
- 1 to 25 employees are required.
- Effectively running in Massachusetts, Maine, New Hampshire, Rhode Island, Vermont, or select areas of Connecticut.
- Illustrate the influence your company has on the community.
How to Apply
To apply, you will have to visit the Power Forward Small Business Grant website.
The African-American Community Fund (AACF)
The African-American Community Fund (AACF) accepts grants from qualified 501(c) (3) organizations in the Dayton/Greater Miami Valley area.
The African-American Community Fund (AACF) offers grants to organizations involved in humanitarian causes including everything from social services to mentoring and training, health and wellness, and the arts. Awards range between $500 and $1,000. The size and number of grants are determined by the amount of funding available each year.
- Under the Internal Revenue Code, be recognized as a 501 (3) tax-exempt nonprofit organization.
- Residents of the Dayton/Greater Miami Valley region will benefit.
- Put in place an equality and inclusion policy, and address preferences that aren’t fully met by current organizational or support systems.
How to Apply
You may be necessitated to submit a Letter Of Intent in addition to going to visit the grant website to apply (LOI). The first and most important process, however, will be the application process.
National Black MBA Association Scale-Up Pitch Challenge
Since 2017, the National Black MBA Association (NBMBAA) has awarded grants to black-owned businesses via its Scale-Up Pitch Challenge. This competition provides an opportunity for startup companies to meet with investment firms and venture capitalists. Aside from that, finalists may receive cash prizes ranging from $1,000 to $50,000 for their presentations.
- Applicants must be US citizens over the age of 18. All concepts submitted must be the applicant’s original work.
- Any prior funding must be stated or disclosed by all applicants.
- The business founder should also be Black or of African descent and hold an equitable stake in the company.
- The candidate or at least one team member must be a member of the National Black MBA Association.
How to Apply
Candidates who are interested and qualified should apply online at https://nbmbaa.org/scale-up-pitch-challenge/. The top ten finalists will be invited to pitch their ideas to a review panel. The top three finalists will then compete for a $50,000 cash prize at the annual NBMBAA Conference & Career Fair, with additional prizes for second and third place ($10,000 and $7,500), as well as a People’s Choice Award ($1,000).
Northwestern Mutual Black Founder Accelerator
Every year, the Northwestern Mutual Black Founder Accelerator invests in up to ten businesses led by Black founders. Those who apply will receive a $100,000 investment and also a 12-week accelerator program. Business owners will receive development assistance from knowledgeable mentors, technologists, subject matter experts, angel investors, and venture capitalists through gener8tor and Northwestern Mutual.
- One or more people who identify as Black or African American own at least twenty percent (20%) of the equity stock.
- These individuals have a significant impact on decision-making processes.
- Businesses should also adhere to the investment preferences of Northwestern Mutual Future Ventures, which include Fintech, Insurtech, Digital Health, Data Analytics, and so on.
How to Apply
To apply, go to airtable.com and search for Northwestern Mutual Black Founder Accelerator.
Just as was noted above, the US Small Business Administration does not provide grants specifically for black businesses; rather, grants are provided to nonprofits, resource partners, and academic institutions that promote business growth via guidance and mentoring initiatives. However, if you require grants for your black-owned business, consider the options noted above.