Are you a Black business owner looking for grants to boost your business? You are in the right place. 

 

Due to policies like the Black-led CDFIs (Community Development Financial Institutions), Equal Credit Opportunity Act, and improved support for minority business growth, Black-owned businesses now have a better chance of obtaining grants.

 

Here you will find the necessary information on grants and organizations that provide grants to Black business owners to help them build their businesses.

 

What are Grants?

 

Grants are financial contributions that do not have to be repaid to the funder, in contrast to traditional loans. They are financial sources that both individuals and companies can apply for. 

 

A business grant is money given to qualified enterprises as a type of financial aid to support their expansion and achievement of goals. The majority of grants are often provided by grant-making organizations, which typically comprise governmental entities, non-profits, and private financiers. These organizations provide funds to assist businesses in achieving certain goals like research, expansion, and employing workers.

 

Six Types of Grants

 

There are numerous grant options accessible for businesses. Here are the six common grant categories for Black business owners:

 

1: Incubator or Workshop Grant

Grants are frequently offered to founders and business owners in combination with being accepted into a cohort, obliging them to take part in business development programs or accelerators that aid early-stage businesses. Grant funds might be given in the form of either cash or capital investments.

 

2: Specific Use Grant

A small-business owner may be awarded a $20,000 grant but must use the funds for specific purposes as determined by the giver, like expanding the business, finishing a social impact project, becoming more environmentally friendly, or hiring staff.

 

3: Lump Sum Grant

Some small-business incentives have a fixed financial amount and are distributed as a single, unconditional payment. 

 

4: Research Grant

Research grants are designed to assist businesses with specific research work. It could be an assistant on a research project, or enhancing a product, service, or idea.

 

5: Pitching Competition Grant

Pitching Competition Grants are common in the technology industry and other sectors, including health, wellness, and food. Entrepreneurs who provide smart business pitches to public or private audiences are given prizes in the form of cash, capital investments, or both. 

 

6: Service Grant

This type of grant comes in the form of free services, such as legal services, technical support, access to free coworking space, or a number of materials that could aid work processes.

 

What is a Black-owned Business?

 

A business that has Black owners, founders, or leaders such as Oyo Market is said to be Black-owned. When grants are available to entrepreneurs of color or minority business owners, it often means that at least 51% of the company is held by someone who is Black, Asian-Indian, Asian-Pacific, Latino, Native American, or a combination of these groups.

 

According to a US Census Bureau Survey of Business Owners in 2011, Black-owned businesses are “firms in which Blacks or African-Americans own 51 percent or more of the equity, interest, or stock of the business.” 

 

13 Grants for Black Business Owners You Should Know 

 

Applying for small-business grants requires procedures like the collection of bank statements, tax returns, revenue documentation, and more, depending on the grant provider’s requirements, which could be obtained on their website or social media page. 

 

Here is a list of organizations that provide grants to Black business owners:

 

1: Back Black Businesses

The Coalition to Back Black Businesses, in collaboration with Shopify, is a group of organizations that awards $5,000 Back Black Business grants to Black-owned small businesses in economically depressed areas. 

 

Businesses must have been affected by the pandemic, have three to twenty employees, and operate in specified industries. Grantees also receive mentoring and training from established business owners. A $25,000 enhancement grant will be offered to a select group of candidates. 

 

2: Black Founder Startup Grants

SoGal, a global entrepreneur and investing platform has been working with corporations such as Walmart, Verizon, and the clean beauty brand Winky Lux, among others, to provide $5,000 and $10,000 Black Founder Startup grants on a rolling basis. 

 

The funds are intended for Black women and non-binary entrepreneurs that have a scalable, high-impact company idea and “the ambition to be the next billion-dollar business.” The application consists of a short online form.

 

3: Oakland Black Business Fund

Black-owned businesses in Oakland, California, can apply for funding through the charity Oakland Black Business Fund (OBBF), which is partnered with Community Bank of the Bay and the nonprofit Alliance for Community Development. It gives grantees access to business growth options through financial funding and technological help. 

 

4: The NBMBAA Scale-Up Pitch Challenge with Collegiate Edition

The National Black MBA Association’s annual Scale-Up Pitch Challenge grants startups prizes of $50,000, $10,000, $7,500, or $1,000. This competition provides an opportunity for businesses to engage with early-stage investors and venture capitalists (VCs). 

The newly created collegiate edition offers a $50,000 grand prize to enterprising college students. Eligibility requirements include being a Black-established team member with an active NBMBAA membership. 

 

5: Keep It Local Business Fund

The NAACP and Nextdoor Kind Foundation collaborated to establish the Keep It Local Business Fund, which awards $5,000 in microgrants to entrepreneurs of color. Business owners receive training materials and are marketed on Nextdoor in addition to the minority business subsidies. The grant has specified criteria, such as community-focused enterprises with gross yearly revenue of less than $1 million. 

 

6: Fast Break for Small Business

The WNBA, NBgivesBA G League, LegalZoom, and the Accion Opportunity Fund have partnered to provide small-business entrepreneurs with $10,000 Fast Break for Small Business grants. Winners will also receive free LegalZoom services. Applications will be accepted during the 2022-2023 NBA season.

 

7: Wish Local Empowerment Program

Wish Local is an e-commerce platform that allows for the physical pickup and delivery of Internet orders. Wish Local established a $2 million fund to award Wish Local Empowerment grants ranging from $500 to $2,000 to Black-owned, brick-and-mortar small companies that are Wish Local partners. The funding conditions include having less than $1 million in annual revenue and joining Wish Local (for free) if awarded a grant.

 

8: Comcast RISE Innovation

Comcast NBCUniversal is awarding $10,000 awards to 100 small businesses owned by people of color through the Comcast RISE Investment Fund. Businesses must be based in one of the following cities: Chicago, Miami, Oakland, Seattle, or Washington, DC. Aside from money, the award assists with technology, media, and marketing. The application is available online.

 

9: Power Forward Small Business Grants

Vistaprint, the Boston Celtics Shamrock Foundation, and the NAACP have partnered to provide $25,000 Power Forward Small Business awards to Black-owned small companies in Maine, New Hampshire, Rhode Island, Vermont, Massachusetts, and certain portions of Connecticut. Grant recipients will also receive assistance with design and marketing. Until the $1 million fund has been utilized, applications will be accepted on a rolling basis. 

10: PowerShift Entrepreneur Grants

NAACP PowerShift Entrepreneur grant, which is supported by Shark Tank’s Daymond John gives grants to an entrepreneur in the form of mentorship and brand promotion in addition to grant funds. Applications are usually opened in early to mid-October.

 

11: Backing the BAR

The NAACP and Bacardi collaborated to provide $10,000 Backing the BAR scholarships for Black-owned hospitality businesses with liquor licenses (or pursuing one). Aside from money, grant recipients receive access to education and business support to help them grow their enterprises. Applications are usually accepted from mid-June until late July.

 

12: Galaxy Microgrants

Every year, the membership-driven resource platform Galaxy of Stars, which assists minority small company owners (together with the organization Hidden Star, which empowers low-income and minority-owned small enterprises), awards Galaxy Microgrants. A simple application process asks for basic information such as contact information, ethnicity, and whether you are a present or prospective business owner. 

 

13: Kinetic Business Black Business Support Fund

Kinetic Business, an Arkansas-based Windstream fiber internet company, offers Black Business Support Fund awards of up to $2,500 to Black-owned small businesses in their service area. Grant qualifying requirements include having a small firm (no more than 25 employees) and a for-profit, with industry restrictions. 

 

Conclusion

 

You need to check that your business fits the grant’s standards before applying and submitting the application to ensure that it qualifies. Remember that after you’ve completed one grant application, applying for additional grant possibilities becomes much easier. Good luck!