United States Minority Business Government Grants
Grants.gov is the official United States government website for federal grants. It provides information on over 1,000 grant programs and links to the 26 grant-awarding federal agencies. According to the U.S. Small Business Administration (SBA), however, the federal government does not award grants to private individuals of any racial group for starting and expanding a business.
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Purpose of Government Grants
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The government usually awards grants to carry out a public purpose. They typically go to state governments, businesses, or nonprofit groups for specific projects. For example, SBA awards grants to nonprofit and educational institutions for many of its counseling and training programs. The Minority Business Development Agency awards grants to nonprofit and for-profit entities that operate MBDA's Minority Business Centers throughout the United States. These organizations provide business consulting, procurement matching and financial assistance counseling to minority-owned firms. The government also awards personal grants to individuals with demonstrated financial need for a specific purpose such as the Pell grant for low-income students and housing grants for low-income individuals and disabled veterans. In all cases, grants serve a public purpose.
Financing Resources for Minority Business
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Federal and state agencies and private organizations offer many robust loan programs to help minorities with business financing from seed money to working capital. Since qualifications differ by type of program, MBDA recommends visiting one of its minority business centers for one-on-one financial counseling. You can find business center locations at the MBDA website. Be mindful that government programs are not direct loans. The government only guarantees that you will repay the loan. Therefore, many programs have collateral requirements that will differ by lending institution.
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State and Local Resources
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Some state and local programs award business grants. The SBA website has a user-friendly search engine that allows you to search for business grants, loans and financing resources by your state of residence (see References). All you do is select the criteria that best fits your business. Then select the state where you live and click the search button. The search engine delivers public and private sector grant information, loan programs and seed and venture capital resources for your state of residence.
Getting Started
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In preparation for your visit to one of the minority business centers, MBDA advises that you gather some basic information about you and your company. At a minimum, the package should include a narrative on why you need funding and the intended use of the proceeds, personal background information with a resume and your credit reports, and a sound, well-written business plan with financial projections.
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