Grants for Minority Business Owners

Business grants are available at the federal and local levels for minorities.

The United States government has several programs designed specifically to help businesses that are owned by women and minorities, including African Americans, Asian Americans, those of Hispanic background. These programs offer loans and grants based on certain requirements. There are also a number of private organizations that offer grants to certain minorities, along with local programs designed to help businesses in a certain areas.

MBDA

The MBDA, or Minority Business Development Agency, is a federal agency designed specifically to govern and help businesses owned by minorities. Although they tend to focus on larger minority companies that have the potential to create large profits, they can also help smaller businesses. It should be noted that the government does not actually offer grants for starting a business, but MBDA has excellent links for finding grants or loans based on minority status.

Private Organizations

Many private organizations exist to help minorities in business, especially in a certain area. These organizations are more likely to offer grants or extremely favorable loans to be used in running the business. One popular example is the Women's Funding Network, a private enterprise designed to help working women develop contacts and financing.

SBA

The SBA, or Small Business Administration, is also an excellent source of grant and loan information for small business owners, especially minorities. While the SBA cannot grant loans for start-up businesses, it can grant loans based development and training opportunities, and is inclined to look more favorably on small businesses that are struggling or in minority-community areas.

TARP Loans

TARP (trouble assist relief program) loans are part of a government initiative to help businesses in need. These loans have gone out to Community Development Financial Institutions, which are located in many minority communities. While not technically grants, these loans and others like them represent an excellent opportunity for minority businesses, especially ethnic-oriented establishments, to receive funding.

Local Programs

There are a vast number of local programs designed to give loans to minority businesses. These grant programs differ from state to state, but state business departments can offer information on qualification and loan application. There are also a large number of local programs based on city and county areas that offer smaller grants to minority business ventures.

References

• SBA: Grant Information
• MBDA: Financing
• WomanOwned: Grant Opportunities Available for Women