Topic: Small Business Grants For Minorities

According to the U.S. Census Bureau less than 20% of U.S. employer businesses are minority-owned. However, the owners of these 1.1 million minority-owned businesses often face increased challenges when it comes to securing business funding.

A reality is that minority business owners are less likely to apply for credit due to fear of loan denial. There continues to be funding gaps between minority groups and white male business owners.

Securing grants is one solution that seeks to increase access to small business funding for minority owners. With grants, owners do not have to repay the funding, nor do owners have to share a portion of their business with investors. However, because grants are such an attractive funding source, there is a lot of competition during the application process.

What Types of Grants Are Out There?

The Texas Governor’s Office of Small Business Assistance works closely with its partners to facilitate small businesses accessing capital. Key funding sources include:

U.S. Small Business Administration. The SBA provides counseling, capital, and contracting support. The SBA offers loans and provides training to assist small businesses to grow and take advantage of these opportunities. It also provides disaster loans during times of crisis. The SBA has six offices in Texas.

Texas Workforce Training Grants. The TWC offers a “Skills for Small Business” grant. This grant supports businesses with fewer than 100 employees and provides incentive training for new, full-time workers. There is also support to upgrade the skills of existing full-time workers. Training is provided through community or technical colleges, or the Texas Engineering Extension Service (TEEX).

Texas Angel Investors. There are many angel investor networks in Texas. Visit the Alliance of Texas Angel Networks website to discover which networks are near you. Angel investors are private individuals who provide equity funding for start-ups, entrepreneurs, and young business owners. They provide their investment in return for shares in the company.

Non-Profit Lenders. Community Development Financial Institutions (CDFIs) are non-profit lenders. They offer low interest rates, advice, and workshops to borrowers. They lend to disadvantaged businesses and entrepreneurs. Some of the lenders in Texas include BCL of Texas, LiftFund, and PeopleFund. It provides business grants for minority grants as well as others. The database, maintained by the Office of Management and Budget (OMB), contains information about more than 1,000 federal grants. It also includes details about the eligibility requirements for each program.

Asian Women Giving Circle Grants. The AWGC is a network that works to raise funds for Asian American women-led projects. Eligible projects must be related to arts and culture and promote social awareness regarding issues that affect Asian American girls, women and families, and be located in New York City. The grant committee awards grants of up to $15,000 per project.

The Coalition to Back Black Businesses. This is a partnership of several brands that came together with the goal of empowering Black-owned businesses. The Coalition is supplying $14 million in minority grants, resources, and training over a span of four years through 2023. The goal is to help small businesses recover from pandemic-related setbacks. The Coalition includes American Express, ADP, AIG Foundation, Altice USA, Dow, and the S&P Global Foundation.

Eligible businesses must be Black-owned enterprises located in economically distressed communities. Select businesses will qualify for grants in the amount of $5,000 each fall, in combination with training and mentorship benefits. When the summer arrives, a few initial grant recipients will receive additional $25,000 enhancement grants as a means of additional funding and support.

Become A Member Of SACC

Becoming a member will allow you to access information about small business grants as well as many other benefits.

  • Get advice from industry experts on career goals and advancement opportunities.
  • Learn how to build a successful small business through a series of workshops for members only.
  • Promote your business through event sponsorship opportunities.