By demographic · 9 min read

Minority Business Grants: Programs, Eligibility, and How to Win

Federal, state, and corporate grants for Black-, Latino-, Asian-, and Indigenous-owned businesses, with eligibility checklists.

Who qualifies as a minority-owned business?

Most grant programs and the federal Minority Business Development Agency (MBDA) define minority-owned as at least 51% owned, controlled, and operated by individuals identifying as African American, Hispanic/Latino, Asian American, Native American, Alaska Native, Native Hawaiian, or Pacific Islander.

Many programs additionally require US citizenship or permanent residency, day-to-day operational control by the qualifying owner, and proof through MBE certification (NMSDC, state, or city).

Federal programs

  • MBDA Capital Readiness Program - funds incubators and accelerators that serve minority entrepreneurs.
  • USDA Rural Business Development Grants - minority-owned rural businesses qualify alongside others.
  • SBIR/STTR set-asides - agencies prioritize underrepresented founders within R&D awards.
  • Section 7(j) Management and Technical Assistance - SBA-funded training for SBA 8(a) certified firms.

Corporate and foundation grants

  • Comcast RISE - cash grants and marketing services for BIPOC-, women-, and veteran-owned businesses.
  • FedEx Entrepreneur Fund - annual grants of $50K each.
  • NAACP Powershift Entrepreneur Grant - for Black-owned small businesses.
  • National Association for the Self-Employed Growth Grants - up to $4,000 for members.
  • Local foundations - community foundations in most major cities run BIPOC-focused programs.

Certifications worth getting

  • NMSDC MBE - opens corporate supplier-diversity programs.
  • State/city MBE - required for many public-contract set-asides.
  • SBA 8(a) - federal contracting program for socially and economically disadvantaged firms.

Application tips

For demographic-restricted grants, reviewers expect a specific story about your community, customers, or hiring. Generic narratives lose to founders who name the gap they're closing and quantify the impact.

FAQ

What qualifies a business as minority-owned?

Most programs require 51% ownership by individuals from a recognized minority group, US citizenship or permanent residency, and day-to-day control by the qualifying owner(s).

Is MBE certification required to apply?

Some programs require certification (NMSDC for corporate supplier diversity, state/city MBE for public contracts). Many grants don't require it, but having it speeds future applications.

About Chombo

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