How to Apply for Grants for Minorities Starting a Business

Minorities interested in starting new businesses face problems that are unique. In certain communities, minority business owners face age-old prejudices that dissuade consumers from shopping in certain stores or neighborhoods. They may also have a harder time getting approved for business loans. As a minority, you can apply for grants aimed at helping minority business owners rise above these obstacles.

Instructions

Difficulty: Moderate

Submit Grant Applications for Minority-Owned Businesses

1. Start your search for minority business grants at the state level. Your state government may have a small business grant program aimed at increasing minority ownership. You can find grant organizations in all 50 states by consulting the Minority Business Development Agency website (see Resources below).
2. Write a statement of purpose for your business that clearly defines your goals in the marketplace. A mission statement is one of the factors that grant organizations use to separate potential recipients from denied applicants.
3. Prepare a budget for expenses on a monthly, quarterly and annual basis before you apply for a grant. Most small business grants need to be utilized for a specific purpose, whether it is hiring a new employee or purchasing IT equipment. You need to establish a budget to help you prepare for the beginning period of your business, as well as convince potential investors of your competency as an owner.
4. Provide sketches, definitions and details about future products or services that would be influenced by a grant. Your application needs to convince the grant reviewer that the funds will be used for a tangible purpose well into the future.
5. Include multiple points of contact and public review when you submit a grant application. You should include the names of department heads, report writers and others who have contributed to application materials. Cite any websites or online partnerships you have established which can be used by a grant organization as supporting material.
6. Highlight the effect that your business will have on minority communities when you apply for a grant. You may be starting a youth counseling center or a recruiting firm that helps community groups not served by current businesses. Grant organizations devoted to funding minority-owned businesses often provide grants if they see genuine devotion to helping the community.

Tips & Warnings

• Expand your search for business grants beyond those dedicated to minorities. There are many grants that are specific to starting businesses in certain industries and sizes. They can supplement grants devoted to minorities.