Minority Small Business Grants: 12 Options
Minority small business grants can help to close the business funding gap, delivering funds to business owners belonging to historically marginalized communities. Unlike loans, which you must repay in full with interest, grants offer free money that doesn’t need to be paid back, unless you violate its terms.
Government and private entities award minority small business grants, each with its own eligibility requirements. We’ll walk you through grant funding and other resources available to minority-owned businesses.
Private grants for minority small businesses
While government grants tend to offer the highest amount of funding, they can be labor intensive to apply for. By comparison, private grants may offer smaller rewards, but they are typically less time consuming to pursue.
The following grants are offered by private foundations and corporations.
1. National Association for the Self-Employed (NASE) Growth Grants
- Grant amount: Up to $4,000
- Eligibility requirements: You must have a paid NASE membership.
- Application process: Apply on NASE’s website after logging in.
NASE grants are awarded both for growing your business and for paying for your dependents’ education. Business grants are for $4,000 and can be used for a range of purposes, including buying supplies, training employees or investing in new equipment.
To be eligible, you must be a NASE member in good standing. If you’re paying on a monthly basis, you’ll need to be a member for at least 90 days before applying. If you’re an annual member, there’s no waiting period.
2. FedEx Small Business Grant Contest
- Grant amount: Likely up to $50,000
- Eligibility requirements: To qualify, your business needs to have been in operation for at least six months and have no more than 99 employees. You’ll also need a valid FedEx business account that has been open for six months or more.
- Application process: Apply on the FedEx website.
The FedEx Small Business Grant Contest accepts applications from small business owners who have demonstrated a need for shipping services. While this grant is not limited to minority business owners, it’s still worth considering. Some types of businesses are excluded, such as nonprofits, franchisees and multilevel marketing.
Details for 2025 have not been announced, but in 2024, one grand prize recipient was awarded $50,000, while nine other businesses were awarded $20,000. To be notified when the program returns, you can sign up for email updates.
3. First Nations Development Institute Grants
- Grant amount: Varies
- Eligibility requirements: Available for federal- and state-recognized tribal governments, Native-controlled nonprofit organizations and fiscally-sponsored Native community organizations.
- Application process: Apply on the First Nations website.
First Nations Development Institute Grants are awarded to tribes and Native nonprofits to be used for purposes that strengthen Native American communities. Past grants have focused on farming, food security, education, ecology, culture and entrepreneurship. New grants opportunities are posted periodically on the website.
Eligibility requirements may vary depending on the specific grant you’re applying for.
4. National Black MBA Association (NBMBAA) Scale-Up Pitch Challenge
- Grant amount: Up to $50,000
- Eligibility requirements: The business must have a founder who is Black (of African descent) that maintains at least an equal stake in the startup. At least one member of the pitch team must be an active member of the National Black MBA Association.
- Application process: Apply during the summer on the NBMBAA website.
The NBMBAA Scale-Up Pitch Challenge grants cash prizes up to $50,000 to support wealth building opportunities for NBMBAA members, with a focus on businesses with the potential for rapid growth on a large scale. To be eligible, your business must be in the early stages of development.
Semi-finalists will pitch their businesses virtually to a panel of judges while finalists will be invited to present their pitch at the NBMBAA annual conference.
Applications are typically due in the summer and awards are made in the fall.
5. Comcast RISE Investment Fund8
- Grant amount: $5,000
- Eligibility requirements: Your business needs to have operated for at least three years with 100 employees or fewer. Location requirements will also apply.
- Application process: Create an account to apply on the RISE website.
Comcast RISE grants are aimed at helping small businesses who are committed to uplifting their local communities. While not restricted to minority-owned small businesses, the grants are part of Comcast’s Project UP program, which targets communities disadvantaged by the digital divide. I
In 2024, small businesses in Atlanta, Houston, Jacksonville, Fla., Richmond, Va. and Southern Colorado were eligible to apply. Of those who applied, 500 businesses were selected to receive an award of $5,000.
Details about specific grant amounts and award criteria will be posted on the RISE website when new grant applications open.
6. The Pathway to Opportunities Competition
- Grant amount: Up to $5,000
- Eligibility requirements: You must have at least 51% ownership in a business that has been operating for a minimum of three months.
- Application process: Apply on the Pathway to Opportunities website by June 9, 2025.
The Pathway to Opportunities Competition, formerly called the National Black Business Pitch, is an annual competition for small business owners. Grant finalists will be invited to present their business pitch to a virtual audience of corporate procurement professionals, and three winners will be selected to receive prizes of up to $5,000.
Applications are open until June 9, 2025. The live pitch competition will take place in late August.
7. The Black Ambition Prize
- Grant amount: Up to $1,000,000
- Eligibility requirements: At least one founding member of the business must belong to a background that has been historically overlooked by venture capital funding. In addition to Black and Hispanic entrepreneurs, this includes members of the LGBTQ community, first-generation immigrants and parents with income below the poverty level.
- Application process: Apply on the Black Ambition website. Applications for the 2025 competition opened in late February and the deadline to apply is May 2, 2025.
Founded by Pharrell Williams, the Black Ambition Prize is designed to provide financial backing and support for businesses that are often underrepresented in venture capital — including but not limited to those led by Black and Hispanic entrepreneurs.
More than 100 semi-finalists will be selected to participate in a three-month mentorship program, gaining access to one-on-one mentorship, coaching and potential investment opportunities. One winner will receive a grand prize of $1,000,000, while dozens of other teams will receive funding between $15,000 and $250,000.
To be the first to know when applications open up, subscribe to Black Ambition’s newsletter.
8. Wish Local Empowerment Program
- Grant amount: $500 to $2,000
- Eligibility requirements: Your business must be Black-owned with a brick-and-mortar location and 20 or fewer employees.
- Application process: Apply on the Wish Local website.
This funding opportunity is provided by Wish Local, a series of programs that encourages small businesses to partner with the Wish mobile-shopping app. Black-owned small businesses can apply to receive grants between $500 and $2,000.
There are no limitations on how to spend the money, though Wish Local recommends putting these funds toward operational costs such as rent or inventory, building a customer base or finding ways to invest in your community.
Government grants for minority-owned businesses
Many federal and state agencies offer grant programs for small businesses. Though these grants may not be specifically reserved for minority-owned businesses, they may be able to provide significant funding for your venture.
The following government grants are available to minority-owned businesses.
9. Grants.gov
- Grant amount: Varies by program.
- Eligibility requirements: Varies by program.
- Application process: Varies by program. Visit grants.gov to learn more.
Grants.gov is a central database of all grants currently offered by federal government agencies, as well as useful educational information on how to navigate the grant application process. While there’s no specific search field for minority-owned businesses, you can narrow your search according to your type of business entity and industry.
To apply for a grant, you will need an Employer Identification Number (EIN) and a Unique Entity Identifier (UEI), obtained on the SAM.gov website. Keep in mind that it could take up to 10 business days to complete the registration process and receive your UEI.
10. USDA Rural Business Development Grants
- Grant amount: Varies by program.
- Eligibility requirements: Varies by program.
- Application process: Varies by program. Find available programs on the USDA website.
USDA grants, as well as USDA loan programs, target improving the economy and quality of life in rural areas. Like Grants.gov, USDA grants are not limited to minority business owners, but available to small and large for-profit businesses, as well as nonprofit and tribal entities.
USDA Rural Business Development Grants can be used for a wide range of projects, from agriculture innovation to housing, water quality, health care and rural job creation in general.
11. Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Programs
- Grant amount: Up to $1.83 million
- Eligibility requirements: Your company must be U.S. based and controlled and you must have fewer than 500 employees.
- Application process: Varies depending on the federal agency.
The SBIR and STTR programs award grants to small businesses for technology research and innovation. Grants are issued by eleven different federal departments such as Defense, Energy, Health and Human Services and the Environmental Protection Agency. The grants provide up to $275,000 for technology concept development and up to $1.83 million for prototype development.
While minority business ownership is not required, the program goals include support of women and socially/economically disadvantaged individuals. The STTR grants require partnership with a nonprofit research institution, but this is not required for the SBIR grants.
12. U.S. Economic Development Administration
- Grant amount: Varies by program.
- Eligibility requirements: Varies by program.
- Application process: Varies by program. Visit eda.gov to learn more.
The U.S. Economic Development Administration (EDA) is an arm of the U.S. Department of Commerce that strives to foster economic growth and development in local communities. It offers funding for several types of projects, awarding grants to local and state governments, agencies and universities, who in turn offer funding and support for local businesses.
The EDA can be a helpful resource for businesses looking for state-funded small business grants. The Council for Community and Economic Research (C2ER) has a similar database, which you can use to search for state-based incentive programs including grants, loans and tax credits.
Other resources for minority small businesses
In addition to grants, minority-owned businesses can also take advantage of other available resources, such as entrepreneurship coaching, referral programs and alternative sources of funding.
SBA 8(a) Business Development Program
The Small Business Administration 8(a) Business Development Program helps businesses owned by socially and economically disadvantaged individuals by providing training and the opportunity to compete for government contracts. The program does not offer direct cash grants or loans.
To be eligible, you must apply to be certified as a minority-owned business. Your small business must be at least 51% owned and controlled by U.S. citizens who are socially and economically disadvantaged and who have a demonstrated potential for business success.
Minority Business Centers
Minority Business Development Agency (MBDA) Business Centers provide training and support for minority-owned businesses, which can help you navigate the process of applying for financing, competing for contracts and entering new markets.
Operation Hope Programs
Operation Hope aims to help start, grow and scale one million black owned businesses by the year 2030 by providing mentorship, free coaching and education on topics including entrepreneurship, money management, insurance and more.
National Minority Supplier Development Council (NMSDC)
The NMSDC supports communities of color (Asian-Indian, Asian-Pacific, Black, Hispanic and Native American) by helping connect minority business enterprises to potential sources of capital, contract opportunities and supply chain partners.
To take advantage of these resources, minority-owned businesses must apply and pay for Minority Business Enterprise certification. Certified businesses are listed in NMSDC’s MBE Search, which can help you connect with other minority-owned companies.
Small business loans
Since grants likely won’t meet all your funding needs, you may want to explore small business loan options, including loans for minority-owned businesses and loans for startups. Unlike grants, loans must be paid back in full with interest.
Typical loans that may be available to minority small business owners include:
- Term loan: A lump sum of cash repaid with interest in fixed installments. Short-term business loans typically have terms lasting only a few months up to a few years, while long-term business loans can have repayment terms extending as long as 10 years or more.
- Line of credit: A business line of credit is a flexible form of funding that can be borrowed against and paid off as needed, like a credit card.
- Equipment loans: Equipment financing is available when you buy vehicles, machinery and other types of equipment.
- Working capital loans: Working capital loans are used to cover operating expenses, such as financing your inventory and accounts receivable.
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