Minority-owned businesses drive economic growth in communities across the country. Dedicated grant programs exist at the federal, state, and private levels to support minority entrepreneurs. This guide covers the top programs and how to access them.
Federal Programs
Minority Business Development Agency (MBDA)
The MBDA is the only federal agency dedicated to minority business growth. It operates Business Centers nationwide that provide:
- - Free business consulting
- - Access to capital networks
- - Contract procurement assistance
- - Grant application support
MBDA Business Centers do not give direct grants but connect you to programs that do. Find your nearest center at mbda.gov.
SBA 8(a) Business Development Program
Duration: 9-year program Requirements: Small, disadvantaged businesses (at least 51% owned by socially and economically disadvantaged individuals)
The 8(a) program provides access to sole-source federal contracts worth up to $4.5 million for goods and services. This is not a traditional grant, but the contract access creates guaranteed revenue streams.
CDFI Fund Grants
Amount: Varies Through: Community Development Financial Institutions
CDFIs in minority communities receive federal grants to lend to local businesses. Many CDFIs combine grant and loan products with below-market interest rates. The CDFI Fund website has a locator tool to find institutions near you.
USDA Socially Disadvantaged Farmers and Ranchers Program
Amount: Up to $250,000 Requirements: Agricultural producers who are members of socially disadvantaged groups
This USDA program funds education, training, and outreach for minority farmers and ranchers. It also provides direct financial assistance for eligible operations.
Private and Foundation Grants
National Minority Supplier Development Council (NMSDC)
NMSDC certification connects minority businesses to corporate supply chains. Certified businesses access:
- - Corporate grant programs
- - Procurement opportunities with Fortune 500 companies
- - Business matchmaking events
- - Capacity building funding
Hello Alice Grants
Amount: $5,000 to $50,000 Deadline: Multiple cycles per year Requirements: Varies by program
Hello Alice partners with corporations to distribute grants to diverse entrepreneurs. Programs rotate throughout the year. Past partners include Verizon, Progressive, and UPS.
LISC (Local Initiatives Support Corporation)
Amount: Varies by program Requirements: Businesses in underserved communities
LISC provides grants and technical assistance to businesses in economically distressed areas. Programs target minority neighborhoods and entrepreneurs specifically.
Visa Everywhere Initiative
Amount: Up to $100,000 Requirements: Startups with innovative payment or commerce solutions
While not minority-specific, Visa actively seeks diverse founders for this program. Past winners include multiple minority-owned fintech companies.
Google for Startups Black Founders Fund
Amount: Up to $100,000 Requirements: Black-led startups
Google distributes cash awards (not equity investments) to Black founders. The program includes Google Cloud credits, ad grants, and mentorship from Google employees.
State and Local Programs
Most states and many cities offer grants targeting minority-owned businesses. Common programs include:
- - Minority Business Enterprise (MBE) certification - Opens access to set-aside contracts and grant programs
- - Economic development grants - Many states earmark funding for minority entrepreneurs in priority industries
- - Neighborhood business grants - Cities often fund storefront improvements and business launches in minority communities
- - Technical assistance grants - Funding for business education, consulting, and professional development
Getting Certified
Certifications matter. They open doors to programs reserved for certified businesses. Key certifications include:
- - MBE (Minority Business Enterprise) through NMSDC
- - DBE (Disadvantaged Business Enterprise) through state DOTs
- - SDB (Small Disadvantaged Business) through SBA
- - 8(a) certification through SBA
Each certification has its own requirements and application process. Start with one and add others over time.
Building Strong Applications
Minority business grants often ask about community impact. Strengthen your applications by documenting:
- - Jobs created in your community
- - Spending with local suppliers
- - Community programs you support
- - Mentorship and training you provide
These metrics show reviewers that funding your business creates ripple effects beyond your balance sheet.
Find Your Matches
GrantMatched includes minority business demographics in its matching algorithm. When you create a profile and select your ownership demographics, the platform shows grants you qualify for based on your specific situation. This saves hours of manual searching across dozens of databases and websites.