Federal Grants for Minorities Starting a Business
The government of the United States recognizes a need to assist small businesses in order to ensure equality throughout the nation. The result was Congress-instituted programs to promote small business ventures that are owned social minorities.
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Facts
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The U.S. government does not award grants to assist minorities in the creation or expansion of a business. However, there are a number of programs in place for the minority business and its owner(s).
Types
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Programs, including HUBZone, 8(a) and SDB, were created by the government to help minority-owned small businesses acquire private financing and productive business opportunities. There are many mirror programs within various state governments, too.
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Prime Contracting Opportunities
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Contracting agencies issue program specific restricted contract opportunities that are set aside for 8(a), HUBZone and small disadvantaged businesses (SDB) companies. This allows competition to be restricted to only those companies that are certified by the Small Business Administration (SBA) as a HUBZone, SDB, woman owned or 8(a).
Sub-Contracting Support
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For large federal contracts, awarded to large companies, special clauses are included that require the prime contractor to subcontract a certain percentage of the work to special small business concerns. The concerns listed are HUBZone, veteran-owned, woman-owned, 8(a) and SDB small businesses. There are other requirements for Native American-owned 8(a) companies and disabled veteran-owned companies. These clauses ensure certain percentages of the large contracts benefit the smaller, minority-owned businesses.
Participation
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The SBA is responsible for certifying, enrolling and ensuring compliance by all minority-owned small businesses that participate in one or more of the programs. This is where a smaller, minority-owned business should start in seeking enrollment in the programs created by the government to assist them in achieving economic success.
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