Financial Resources Available for Minority Business Owners
African Americans, Native Americans, Alaska Natives, Asian Americans, Pacific Islanders, and Middle Eastern Americans are the major minority groups in the United States. There were over 11 million minority-owned businesses in the U.S. in 2017, according to The Business Journals. But, many minority groups struggle to raise capital to start businesses. The following are seven sources of funds for minority business owners.
1. Native American Business Development Institute (NABDI) Grant
The U.S. Department of Indian Affairs funds the NABDI grant. Yet, it is not clear how much money it gives to Indian investors. The program aims at empowering Alaskan Native and Native American business owners to uplift and grow the financial security of their communities.
2. U.S. Small Business Administration (SBA)
SBA offers several extensive services that include technical assistance, education, and training, accessing markets, and financial management. It prioritizes minority women entrepreneurs who face stiff competition in the market. SBA runs a Business Development Program that helps disadvantaged enterprises. It gives participants huge contracts of up to $6.5 million for manufacturing and $4 million for services and goods.
3. The Red Backpack Fund
GlobalGiving partnered with Sara Blakely, Spanx founder, to create The Red Backpack Fund. It helps women investors who the Coronavirus pandemic has adversely affected. The fund gives business grants for minority women of up to $5,000 and it will operate from April until August 2020.
4. U.S. Department of Commerce Minority Business Development Agency (MBDA)
Richard Nixon established the business development agency in 1969 and it offers financial aid to minority business owners. Reports state that MBDA gave minority-owned businesses, contracts, and capital awards worth over $3.6 million in 2012. It provides information about current government contract opportunities, loans, and grants.
5. Verizon Small Business Recovery Fund
The Local Initiatives Support Corporation collaborated with Verizon to create the Verizon Small Business Recovery Fund. It is a $7.5 million grant program that helps minority women and business owners from indigenous communities. The program distributes money in several funding rounds. For example, the application deadline for round three lapsed on May 20, 2020. Business owners who are 18 years and above can get grants of up to $10,000.
Volunteer business mentors teamed up to form SCORE. It is a non-profit organization that provides educational opportunities and mentorship to minority investors. But, it offers seminars, resources, and classes to all small-business owners. It is advisable to liaise with a local SCORE office to pick the right program.
7. Hello Alice
This is a multichannel platform that offers enterprises with vital resources to help them grow. Its COVID-19 Business for All Emergency Grant fund will provide business grants of up to $10,000 to investors who have been hit hard by the Coronavirus pandemic. Also, the platform is providing funds to Hispanic investors.
Small businesses make a significant contribution to the United States’ economy. But, getting funds is a challenge for many minority groups. A study by Forbes indicates that minority business owners often receive small loans and pay high borrowing costs. Contact New USA Grants via (1-888-364-1123), if you need business grants for minority women. Our financial experts will guide you on how to apply for grants. Please visit here to learn more: https://www.newusagrants.com/minority-hispanic-grants