Minority entrepreneurs face unique challenges when starting and scaling businesses — from limited access to capital to systemic barriers in funding. Fortunately, there are business grants specifically designed to support minority-owned startups in the U.S. Business Grants for Minority-Owned Startups
Unlike loans, grants don’t require repayment, making them one of the best ways to secure startup funding. In this guide, we’ll cover the top grant opportunities for minority business owners, eligibility requirements, how to apply, and tips to increase your chances of success.
💼 What Are Minority Business Grants?
Minority business grants are financial awards offered by government agencies, nonprofits, corporations, and private foundations to support the launch or growth of businesses owned by underrepresented groups. These grants may be focused on specific racial or ethnic groups, industries, or business stages.
💡 Common eligibility: At least 51% minority-owned, U.S.-based, and legally registered business.
🎯 Who Qualifies as a Minority-Owned Business?
According to the U.S. Small Business Administration (SBA), a business is considered minority-owned if it is at least 51% owned and operated by individuals from one or more of these groups:
- Black or African American
- Hispanic or Latino
- Asian American
- Native American or Alaska Native
- Native Hawaiian or Pacific Islander
Many grants also support:
- Women of color
- LGBTQ+ entrepreneurs
- Veterans from minority backgrounds
Also read :- High-Limit Unsecured Business Credit Cards (2025 Guide)
🏆 Top Business Grants for Minority-Owned Startups in 2025
Here are the top active and recurring grant programs for minority founders:
1. Minority Business Development Agency (MBDA) Grants
- Offered by: U.S. Department of Commerce
- Amount: Varies; often $100,000+
- Focus: Minority entrepreneurs, especially in underserved communities
- Website: www.mbda.gov
📝 Tip: MBDA also funds Business Centers across the U.S. offering free grant assistance.
2. Comcast RISE Investment Fund
- Amount: $5,000 – $10,000
- Eligibility: BIPOC- and woman-owned businesses in select cities
- Focus: Marketing, technology, and operations support
- Website: www.comcastrise.com
3. SoGal Foundation Black Founder Startup Grant
- Amount: $5,000 – $10,000
- Eligibility: Black and multiracial women/nonbinary entrepreneurs
- Perks: Mentorship and fundraising support
- Website: www.iamsogal.com
4. National Black MBA Association Scale-Up Pitch Challenge
- Amount: Up to $50,000
- Eligibility: Black-owned startups with a scalable product or service
- Type: Pitch competition + grant funding
- Website: nbmbaa.org
5. Cartier Women’s Initiative
- Amount: $30,000 – $100,000
- Eligibility: Women entrepreneurs, including women of color, from any country
- Focus: Social impact startups
- Website: www.cartierwomensinitiative.com
6. FedEx Small Business Grant Contest
- Amount: Up to $50,000
- Eligibility: Small, minority-owned businesses with a U.S. shipping address
- Bonus: FedEx services credit + publicity
- Website: www.fedex.com/grantcontest
7. IFundWomen of Color Grant Program
- Amount: Varies per partner; often $2,500 – $25,000
- Eligibility: Women of color who are early-stage founders
- Includes: Fundraising coaching and grant matching
- Website: www.ifundwomen.com
📋 How to Apply for Minority Business Grants
Applying for grants is competitive, so preparation is key.
✅ Step-by-Step Application Process:
- Register Your Business
- Must be a legally registered entity (LLC, Corp, etc.)
- Verify Minority Ownership
- 51% ownership and management by eligible minority individuals
- Prepare Your Business Plan
- Clearly outline your mission, products/services, financials, and use of funds
- Gather Documents
- EIN, incorporation certificate, bank statements, pitch deck, proof of ownership
- Apply Online
- Most grants have an online application form with required uploads
- Follow Up
- Respond to interview or pitch invitations promptly
📊 Sample Grant Checklist Template
| Requirement | Description | Completed (✓) |
|---|---|---|
| Registered business | LLC, S-Corp, etc. | |
| Proof of minority ownership | Operating agreement, certification | |
| Business plan | Executive summary, budget, timeline | |
| Financial documents | Revenue reports, profit/loss, tax filings | |
| Pitch deck (if needed) | Vision, problem/solution, market strategy |
🚫 Common Grant Application Mistakes to Avoid
| Mistake | Fix It By… |
|---|---|
| Missing eligibility criteria | Carefully read requirements before applying |
| Weak or unclear business plan | Use templates or get help from SCORE/SBA mentors |
| Lack of proof of minority status | Submit legal documents verifying ownership |
| Applying without customization | Tailor answers to each grant’s mission and goals |
🧠 Bonus: Certification Matters
Becoming a certified minority-owned business can improve your chances for both grants and government contracts.
Popular Certifications:
- MBE (Minority Business Enterprise) – via NMSDC
- 8(a) Certification – via SBA
- Women-Owned Small Business (WOSB) – for minority women
📌 These certifications help you qualify for set-aside funds and supplier diversity programs.
🏁 Final Thoughts: Empowering Minority Founders
Business grants for minority-owned startups are powerful funding opportunities that can help close the capital gap. They not only provide free money, but also offer access to mentorship, networks, and long-term growth support.
Whether you’re building a tech startup, creative brand, or retail venture, applying for grants is a smart step in funding your vision. Stay persistent, polish your story, and don’t hesitate to seek professional help.