Tuesday, November 1, 2022

Government Grants For Small Businesses Owned By Minorities

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Small Business Innovation Research And Small Business Technology Transfer Programs

Minority-owned businesses clamor for government grants

The SBIR and STTR programs are two federal grants that help small businesses in the research, development and commercialization of new technology. They are administered by several agencies, including the Department of Defense, the Department of Transportation and NASA. You do not have to be a minority-owned business to qualify, but your organization must be for-profit, based in the U.S., have less than 500 employees and be at least 50% owned and operated by a U.S. citizen or permanent resident.

The award amounts depend on the research phase. Phase I awards typically range between $50,000 to $250,000. Phase II awards are typically $750,000 for two years.

How To Apply For Minority Small

Its critical to read the eligibility requirements and application process for each grant you apply to. Each is different, so we’ll cover the basic steps and requirements for most minority grants.

  • Step One: Ensure your business qualifies as a minority-owned company , then apply for certification.
  • Step Two: Research grant opportunities and read over the other eligibility requirements for the grant, such as company size, annual revenue, location, etc.
  • Step Three: Gather your documentation .
  • StepFour: Write up a solid business plan, even if youre not a startup or new business .
  • Step Five: Apply for the grant before the deadline.
  • If you need help during the application process, reach out to the program to speak to a representative.

    National Association For The Self

    The National Association for the Self-Employed is an organization that provides resources and tools to entrepreneurs and small businesses. Members consolidate their buying power to save on benefits like legal advice, healthcare plans, office supplies, and more.

    NASE also offers business grants worth up to $4,000. In order to apply, youll have to be a NASE member and explain how the grant money will support your business growth. Funds can be used for marketing, advertising, hiring employees, expanding operations, and more.

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    Whats The Difference Between A Loan And A Grant

    Short answer loans have to be paid back but grants dont. A loan is usually paid back with interest, meaning you pay extra for the convenience of borrowing money you dont have at the moment. A grant is free money. You can keep it without any fees and without having to pay it back. But beware that some grants require a minimum investment from the business owner for funds to be released.

    Free Money To Start A Small Business

    Tennessee small, minority

    Free money to start a small business is a possibility if you think of grants for minority businesses in that light.

    Funding options for a new business can be far and few between, but they definitely offer a lifetime of value that is worth the hard work and the unwavering dedication invested in the process.

    There are several types of grants for small businesses from federal small businesses such as the United States Small Business Administrations $100M Community Navigator Grants to third-party grants such as the 31 updated list of grants for Black women.

    Whatever path you choose to go in your quest for minority business funding, what you should have at the back of your mind is the fact that grants are free money to help you start a business or grow one.

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    Sba 8 Business Development Program

    The Small Business Administrations 8 business development program is not a loan or a grant, but a benefit for minority-owned businesses provides business development assistance and allows small businesses to compete for federal contracts. To qualify, you must have minority owned business certification with the SBA.

    The eligibility criteria:

    Issues With Small Business Grants

    You should take some caveats into account. Small business grants cannot be used for any kind of business expense. A grant is typically awarded for a specific purpose, and when you receive a grant, you may only use the money for that purpose. For example, you cannot use the grant money allocated to a project to acquire inventory for an unrelated project.

    Moreover, applying for grants is a challenging process. Applying for a grant is very competitive, depending on the number of applicants and how many grants are awarded.

    Among the many different grants available to small businesses, some are restricted to one particular group of business owners. There is a tendency for these programs to be geared towards those adults who face greater financial, social, and political challenges attempting to gain a foothold in the business world, such as people of color.

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    Key Government Grants For Minority

    Grants given by the government to support small businesses come in three specific forms local, state, and federal. In the following sections, well dive into a few of the more significant grants offered by state and federal agencies and briefly explain the basics regarding how local grants tend to operate. Well also briefly explain the role of private minority business grants in providing your new business with the critical funding it needs to get off the ground.

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    State And Local Funding

    Fernandina Beach small business owner wins grant for minority-owned businesses, encourages others to

    Itâs definitely a good idea to investigate state and local sources of funding when looking for a minority business loan. There are a variety of regionally-focused redevelopment agencies and other organizations that can help.

    Operation Hope is one such organization that is helping people in low-wealth communities who want to grow businesses. Their Small Business Development program provides:

    • Business training
    • Access to SBA loan program financing
    • Access to lines of credit

    Many states offer specific minority business loan programs. For example, the State of Ohio offers a Minority Direct Loan Program which provides fixed, low-interest rate loans to certified minority-owned businesses that are purchasing or improving fixed assets or creating or retaining jobs.

    Eligibility for the program is determined by a number of factors including:

    • Number of jobs created or retained as a result of the stateâs investment
    • Extent of participation by the business and a lender in the project
    • Demonstrated need for the funds.

    The minimum amount for this loan program is $45,000 with a maximum amount being $450,000. However, the Director of the Ohio Development Services Agency may authorize a higher amount to address unique and demonstrated economic development needs.

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    Luce Indigenous Knowledge Fellowship

    • Submission Dates: Applications must be submitted by July 13, 2021 at 5 pm MDT
    • Entry Requirements: Submissions are open to Native American knowledge holders and knowledge makers.
    • Website:

    The First Nations Development Institute is partnering with the Henry Luce Foundation to offer the Luce Indigenous Knowledge Fellowship, a program that awards 10 fellowships of $75,000 each to 10 Native American knowledge holders and knowledge makers engaged in work that benefits Indigenous people.

    Fellows will be required to gather together three times to pool their collective knowledge, and create a community of practice that crosses fields, geographies, and tribal cultures. Further details can be found on the Fellowships application page, listed above. Submissions are due by July 13, 2021, so apply ASAP if you are eligible and interested!

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    Usda Rural Business Development Grant

    For minorities in rural areas, this grant, issued by the United States Department of Agriculture, is an attractive prospect. In the words of the USDA:

    This program is a competitive grant designed to support targeted technical assistance, training and other activities leading to the development or expansion of small and emerging private businesses in rural areas which will employ 50 or fewer new employees and has less than $1 million in gross revenue.

    Note that this is not a grant you apply for directly from the federal government towns, communities, state agencies, and nonprofits can qualify for the grant. Then, these entities distribute those funds as they see fit. Contact your local USDA Rural Development office to find out whats on offer in your state.

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    How To Support Black

    Supporting Black businesses goes beyond making a statement of solidarity of some. sort, but helping create an enabling environment where Black communities, as they are usually more than just places that offer goods and services, Tayo of Black-owned Brooklyn states. They are community spaces for meeting and connection.

    AfricanAmericanGrants.org feels strongly about the need to create a community where Black-owned businesses can access business funding opportunities such as African American Grants, and a space for other African-American business owners can freely showcase their Black-owned goods and services to the community.

    Indeed, these places as mentioned above, are not just cultural zones, as it were, they may also include hubs, and even digital platforms to create an accessible community of Black business-minded individuals and entrepreneurs connect together. A place where its members understand the unsaid words and behavior of the group and the totality of what the community stands for.

    As such, black provides programs and resources that the community needs. Especially given that Black business owners do not have the same access to the opportunities their white business counterparts have. Supporting Black-owned businesses therefore would in many ways, strengthening Black businesses helps strengthen our communities.

    The Minority Business Development Agency

    It

    The Minority Business Development Agency is dedicated to connecting minority small business owners with stellar resources that can help them succeed, including markets, contracts, and grant capital. The government-run agency also operates several business centers throughout the country where minority small business owners can go to receive the help they need.

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    What Counts As A Minority

    The definition of a minority-owned business will depend on the grant youre applying for.

    Its always best to look at the specific eligibility requirements for grants youre interested in.

    That said, one popular definition comes from the National Minority Supplier Development Council . It offers a certification for minority-owned businesses.

    To qualify, a business must be primarily owned by a minority group memberor a person who has at least 25% Asian-Indian, Asian-Pacific, Black, Hispanic, or Native American heritage.

    Small Business Loans For Minorities

    If you find that you do not qualify for any of the minority grants available, you could still obtain other kinds of funding assistance. Operation Hope helps businesses that operate in low-wealth neighborhoods. Through this program, you might be able to get loan packaging assistance, SBA Loan Program commercial financing, and lines of credit.

    From government grants to corporate grants to minority business loans, funds are available to help you start or run your minority-owned small business. We can help you find grants, loans, and other funding opportunities that fit your circumstances.

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    Statewide California Mwbe Assistance Programs

    Kiva microloans are offered across California. Borrowers, even those with limited or no credit history, or limited or no revenue, can get 0% interest rate loans. Up to $15,000 can be borrowed to start or grow a business. A major focus is on minority, Latino, LGBTQ, veteran, and women owned businesses all of which historically lack access to capital. The financial aid is a peer to peer type lending program. Find details below by city or region.

    Oakland area: . Or try Mandela Partners, which provides access to Capital from Kiva loans, an Entrepreneurs program, free one on one advising and other business services. Read more. .

    Northern California is also covered by San Jose and Santa Clara County region: A major focus from Kiva loans is on tech companies. .

    The central part of the state is Fresno and Central Valley is supported by the Black Chamber of Commerce: .

    Los Angeles and Southern California, in particular Latino owned businesses: or the City of Long Beach Economic Development Department helps entrepreneurs and small businesses.

    Canadian Agricultural Partnership Alberta

    Minority-business owners receive 10k grants

    What is it?

    The Albertan Canadian Agricultural Partnership is a federal-provincial-territorial investment in the agriculture, agri-food and agri-based products sector. The Government of Canada awards funds to each province to help develop economic and investment growth within the agricultural sector.

    How much is awarded?

    The CAP grant offers eligible businesses funding through multiple grant programs.

    • Efficient Grain Handling: The funding for this grant covers 50% of the cost of equipment, with a maximum of $100,000 awarded, while the applicant must cover the other 50% of costs.
    • Emerging Opportunities: The maximum funding provided by this grant is $500,000 per fiscal year, and can only be granted to an entity that has not applied for any other CAP funding.
    • Farm Technology: This grant offers 50% funding while the applicant is responsible for the remaining 50%. The maximum amount allotted for the Program Term is $48,000 per applicant under the Farm Technology Stream and up to $2,000 for the Farm Security Stream, making the maximum available funds for the program $50,0000.
    • The maximum allowable amount for this program is $250,000 per project, covering up to 50% of approved non-capital expenses and 25% of eligible capital expenses.
    • Water: The maximum funding available for both the on-farm irrigation stream and on-farm water supply stream is $25,000, with eligible expenses being cost-shared at 25% grant and 75% applicant.

    Who can apply?

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    Understanding The Difference Between A Grant And Loan

    Government grants are given out to support all kinds of businesses,especially small businesses. Loans are another form of financial supportthat entrepreneurs can apply for to start, grow, and develop theirbusinesses.

    A grant is a financial award given by entities such as the government -to an institution, business, or individual for a particular purpose. Theseusually support the execution of a business project, which directlybenefits the public of Canada.

    On the other hand, a loan relates to funds borrowed from a financialinstitution or a person. These are a liability and must be paid back withina specified time frame. Additional charges are levied, namely interest.Once a business or an individual receives the funds from a loan, they arefree to use them as they deem fit. A loan usually requires some form ofcollateral, like property or assets. Likewise, it can affect our creditscore .

    Now that the definitions have been cleared up, below are some primarydifferences between grants and loans.

    Alternatives To Minority Small Business Grants

    Applying for a minority small business grant doesnt guarantee that youll be awarded the funds. If all of the research and effort involved in applying for a minority small business grant doesnt appeal to you, there are other sources of funding for your business. Some alternatives include:

    • Small business loans: You can obtain a business loan through a bank or online lender. SBA loans are government-backed and come with long terms and low rates, while online lenders have relatively lenient qualification requirements and simple application processes. One option for SBA financing is the SBA Microloan, which provides up to $50,000 and is originated by community-based nonprofits.
    • Personal loans for business: Best suited for startups unable to obtain a business loan, these loans are based on your personal credit history, and therefore dont require business plans and projections. By using an unsecured personal loan for business, you wont need to compromise collateral equity, and you can still supply startup capital to your business.
    • Rollover for Business Startups : If you have existing retirement savings that youre willing to utilize, a ROBS allows you to utilize those retirement funds to provide funding for your small business. A ROBS isnt a business loan, so theres no debt to repay or interest payments to make.

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    Applying For Minority Small Business Grants

    When selecting which minority business grant to apply for, pay special attention to the grants eligibility requirements and the application deadline. Failing to meet either of these will eliminate you as a candidate for the grant. In all likelihood, no two grants will have the same application process, so some diligence will be required. Only apply for grants which youre fully qualified for otherwise, youll be wasting time and effort that could have been focused on seeking other grant opportunities or applying for other startup financing.

    Generally, the five steps to apply for most minority small business grants are get certified as a minority-owned business, write a business plan, do your research, gather required documentation, and apply for your minority business grant before the deadline.

    Small Business Grants For Veterans

    Best Government Resources For Minority

    Here are some small business grants for veteran-owned businesses:

    • StreetShares Foundation: StreetShares is a foundation dedicated to supporting veteran entrepreneurship through educational content, networking and business coaching sessions. The foundation also runs the Military Entrepreneur Challenge, a competition open to veterans or their spouses for three grants between $4,000 and $15,000 awarded for its social impact on the military community.
    • Service Disabled Veteran-Owned Small Business Program: Similar to the 8 Business Development program, the SBA runs this program to help award federal government contracts to service-disabled veteran-owned small businesses.
    • Boots to Business: The Boots to Business program is not a grant but a business education course offered by the SBA for transitioning service members interested in starting a business.

    If you need more funding or these programs dont fit your needs, explore options for small business loans for veterans.

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    Small Business Innovation Research And Small Business Technology Transfer

    Small businesses can have a difficult time competing with larger players when it comes to cutting-edge research and technology. The federal governments Small Business Innovation Research and Small Business Technology Transfer programs are designed to help counter this notion by offering hundreds of grants a year for innovative small businesses.

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