Minority Business Grants Available Eligibility and Application Advice

Minority-owned businesses continue to grow, but access to funding often lags behind. The Federal Reserve Banks’ Small Business Credit Survey reveals that fewer than 35% of Black, Asian, and Hispanic business owners secured the full amount of funding they applied for, compared to over half of white business owners. This highlights the importance of grants and other funding resources for minority entrepreneurs.

This guide provides essential information on grants for minority business owners, covering where to find opportunities, how to strengthen applications, and which programs offer the best combination of funding and support.

What are minority business grants?

Minority business grants are funding or resources awarded to help underrepresented entrepreneurs build and grow their businesses. These grants, which do not need to be repaid, are typically offered by private companies, nonprofit organizations, and government agencies. They can provide direct financial assistance, as well as in-kind support like mentoring, professional development, exposure, and networking opportunities. Many grants have restrictions on how funds can be used, and some require participation in specific programs or commerce platforms.

The term “minority business” has different meanings across various programs.

For federal programs, such as those run by the Small Business Administration (SBA), a minority-owned business is at least 51% owned and controlled by individuals who are Black, Asian, Pacific Islander, Hispanic/Latinx, or Native American. This definition often determines eligibility for federal contracting and participation in the SBA’s 8(a) Business Development Program, which provides mentorship, business training, and access to set-aside contracts.

Many private organizations, nonprofits, and advocacy groups use the term more broadly to include additional underrepresented groups, such as women entrepreneurs, LGBTQ+ business owners, and immigrant founders. This guide uses the broader definition to reflect the full range of grant opportunities available.

Most business grants involve competition—applicants submit detailed applications alongside other entrepreneurs seeking the same funding. Some opportunities take the form of fellowship and mentorship programs, emphasizing networking and professional development, while others are pitch competitions, giving participants the chance to present their business live for both funding and visibility.

Tips for finding and applying to minority business grants

Aspiring and existing small business owners can find and apply for grants by following these tips:

Search online for small business grant lists and utilize major grant databases like the Candid Foundation Directory and Grants.gov, which publishes opportunities from multiple federal agencies. Minority business owners can also find grants through local chambers of commerce, Small Business Development Centers (SBDCs), and Minority Business Development Agency (MBDA) centers, which can connect them with funding opportunities, technical assistance, and business training.

Examine the fine print of each grant, verifying eligibility based on location, revenue thresholds, or industry focus. Keep an eye on closing dates, as grant listings aren’t always updated. Subscribing to funder newsletters can help stay informed about new deadlines.

Write applications with purpose, reflecting passion for the business and an understanding of the funder’s goals. Reference the mission of the grantor where appropriate, and keep answers specific and personal. Funders are looking for authentic stories, not generic text.

Leverage supporting materials to back up applications with evidence of work. A clear business plan, solid financial documents, or visuals such as photos and short videos can add weight. Utilize strengths, letting the plan shine if numbers are an edge, or highlighting polished visuals if branding is a strength.

4 grants for minority-owned businesses

Here are four notable programs that provide funding and support for minority entrepreneurs.

1. Freed Fellowship Grant

• Grant amount: $500 to $2,500
• Eligibility: Micro- and small business owners in the US, with minority and women business owners encouraged
• Deadline: Monthly

The Freed Fellowship Grant awards monthly grants of $500 to small business owners, particularly encouraging applications from minority, female, and other marginalized groups. Awardees also receive one year of access to Freed Studio, which helps them build and leverage their email lists, along with coaching support, business resources, and the chance to win an annual $2,500 grant.

2. Pathway to Opportunity Competition

• Grant amount: $1,250 to $5,000
• Eligibility: Minority-owned businesses in the US with a business-to-business product or service
• Deadline: Annual

The Pathway to Opportunity Competition, previously a pitch competition specifically for Black entrepreneurs, now welcomes all minority business owners to compete. Each annual competition brings together participants to compete in two live pitch contests, with the chance to win cash awards and receive free networking and exposure. This opportunity is for business solutions, not consumer products.

3. Galaxy Grant

• Grant amount: $2,950 to $25,000
• Eligibility: Minority and women entrepreneurs in the US
• Deadline: Varies

The Galaxy Grant is offered by the nonprofit Galaxy of Stars, a resource network for women and minority businesses. It supports small business owners at any stage of their journey. Applications are accepted only from individuals who have created a free or paid Galaxy of Stars membership account.

4. TRANSFORM Business Grant

• Grant amount: $1,000
• Eligibility: US-based entrepreneurs from systematically oppressed groups, regardless of immigration status
• Deadline: Annual

TRANSFORM offers business grants with the explicit goal of wealth redistribution, awarding small grants to minority-owned businesses that make a meaningful social impact. In addition to a small grant award, the TRANSFORM Business Grant offers one year of mentorship and development coaching. Preference is given to small businesses in financial need that share TRANSFORM’s social values and commitment to antiracism.

4 grants for women-owned businesses

These programs provide funding and support tailored to women-owned small businesses.

1. Amber Grants for Women

• Grant amount: $10,000 to $25,000
• Eligibility: Women-owned small businesses in the US and Canada
• Deadline: Monthly

WomensNet, a female entrepreneurship foundation, awards three Amber Grants each month: one open to all women-owned businesses, one for startups, and one in a rotating category. At the end of the year, three grant recipients are selected for additional $25,000 grants.

2. EmpowHer Grants

• Grant amount: Up to $25,000
• Eligibility: US female founders age 22 and up with socially conscious, revenue-earning businesses not more than three years old
• Deadline: Quarterly

The EmpowHer Grants program, an initiative of The Boundless Futures Foundation, offers support to women-owned eligible small businesses. The businesses must demonstrate social impact in poverty and hunger, sustainability and the environment, or strong communities. Recipients also participate in professional training programs. Funding is distributed as reimbursement for business-related expenses.

3. BGV Pitch Program

• Grant amount: More than $30,000 in total cash prizes
• Eligibility: Under-resourced female founders in the US with revenue-generating businesses
• Deadline: Varies (based on event schedule)

The BGV Pitch Program, sponsored by the Black Girl Ventures Foundation, is a multicity pitch competition for women business founders. Competitors receive pitch coaching and support as they develop a two-minute pitch before a live audience. BGV Pitch events are held throughout the year, where audiences are invited to contribute to crowdfunding campaigns for the founders whose pitch they favor.

4. HerRise MicroGrants

• Grant amount: $1,000
• Eligibility: Women-owned businesses in the US with annual revenue under $1 million
• Deadline: Monthly

The female entrepreneurship community HerSuiteSpot offers monthly HerRise MicroGrants, supporting women-owned small businesses. All women business owners are eligible, with preference given to under-resourced women and women of color. Nonprofits, franchises, and direct sellers are ineligible.

Shopify Capital loans must be paid in full within a maximum of 18 months, and two minimum payments apply within the first two six-month periods. The actual duration may be less than 18 months based on sales.

Minority business grants FAQ

Who qualifies as a minority business?

Most grant programs require that minority business owners hold at least 51% ownership and control. The programs will specifically outline the communities eligible in the grant’s description, whether that’s Black-owned businesses, women-owned businesses, or disadvantaged businesses.

Are there any grants for minority-owned businesses?

Minority-owned businesses can access a wide range of grants offered by private companies, nonprofit organizations, and government agencies. Examples include the Freed Fellowship Grant, EmpowHer Grants, and Queer Business Alliance Microgrants. Most of these opportunities are competitive and require an application, but they can provide both funding and professional resources to help businesses grow.

What benefits do minority business owners get?

Minority-owned businesses can access a range of benefits, including eligibility for specific grant programs, certification through the SBA’s 8(a) program or the National Minority Supplier Development Council (NMSDC), and preference in some government contracting opportunities. Beyond funding, many programs also provide mentorship, training, networking, and educational resources that can help qualifying businesses grow and connect with new business opportunities.

Can an LLC get grant funding?

Yes. Most grant programs are open to any eligible business structure—including LLCs, corporations, and sole proprietorships—as long as the business meets the ownership and revenue requirements. The key factor is who owns and controls the business, not its legal entity type.