Apply for a Minority Business Grant

Minority-owned business grants are meant to help small businesses that are owned by members of minority populations who are considered to be socially or economically disadvantaged. These grants can be used to expand businesses or help a business develop new technologies or training practices. In order to qualify for a minority-owned business grant, your business must be at least 51% owned and operated by individuals from a minority population and must meet any specific eligibility criteria set forth by a grant.

Steps

Becoming Certified as a Minority-Owned Business

1. Meet the criteria for Minority Business Enterprise Certification (MBE). In order to qualify for many minority-owned business grants, you must first demonstrate that you meet the criteria for and MBE. One way to ensure that you qualify is to be certified as an MBE by the National Minority Supplier Development Council (NMSDC). Certification significantly helps MBEs gain access to government contracts and grants. In order to be certified, you must meet the following criteria:
   • You must be a U.S. citizen.
   • Your business must be at least 51% minority-owned operated and controlled. The NMSDC considers a person to be a member of a minority group if they are at least 25% Asian, Black, Hispanic or Native American. For publicly owned companies, at least 51% of the stock must be owned by one of more minority group members.
   • Your business must be for profit and located in the U.S. or one of its territories.
   • The management and daily operations of your business must run by the minority ownership member.
2. Collect business documents. Depending on the type of business entity, you may need to provide business documentation including, but not limited to:
   • Partnership agreements.
   • Cancelled checks from the business.
   • Business Meeting Minutes.
   • Articles of Incorporation.
   • Bylaws.
   • Corporate Banking Agreements.
   • Business lease information.
   • Proof of citizenship.
   • Proof of business insurance.
3. Complete an online application. In order to become certified as an MBE by NMSDC, you must complete an online application located at http://www.nmsdc.org/mbes/mbe-certification/ The certification application may require the following information:
   • Name and contact information for the business.
   • Description of business’ products and/or services.
   • List of owners and shareholders.
   • Description of the type of business and business history.
   • Information about employees, including the number of minority employees.
   • Business owner information, including race/ethnic origin, gender, citizenship, and their role in the business.
   • Financial information about the business.
   • List of customer references.
4. Pay your certification fee. In order to become a certified or recertified MBE, you must pay a certification fee that is linked to the region in which you live. The certification fees range from $350-$1200. In order to find the appropriate region for your business visit NMSDC’s website at http://www.nmsdc.org/mbe-certification/ . The certification process can take up to 90 days.

Identifying Minority-Owned Business Grants

1. Utilize Small Business Association (SBA) online search tools. The SBA provides small businesses access to a loan and grant search tool. This tool will guide users to government financing options, which may include some grants. You can access the SBA search tool here https://www.sba.gov/loans-and-grants. The online search tool will tailor its search results based on your answers to the following questions:
   • What is your business zip code?
   • What are your current financing needs?
   • What best describes the small business owner?
   • Which industry is your business in?
2. Search the federal government’s online grant website. The federal government provides a searchable website for all of its federal grants located at http://www.grants.gov. The website allows you to search by newest opportunities, categories, or keyword search. While you could conduct a keyword search for “minority-owned business,” it may be more effective to search for grants relevant to your business type.
3. Review guides for funding opportunities. U.S. Senator Gillibrand produced a 2015 guide entitled “A Guide to Women- and Minority-Owned Business Funding Opportunities,” which provides information on federal and New York State funding opportunities for minority-owned businesses. The Guide can be accessed at http://www.gillibrand.senate.gov/imo/media/doc/Gillibrand%20Minority%20and%20Women%20Owned%20Business%20Guidebook%202015.pdf. The document provides a variety of funding information, including information on the following types of grants:
   • Rural Business Opportunity Grants provide grants for sustainable economic development in rural communities.
   • Rural Business Enterprise Grants provide grants for small and emerging business enterprises that provide job training and education in rural communities.
   • Community Development Financial Institution (CDFI) Assistance Grants provide funding to CDFI’s that provide microloans to minority and women-owned business enterprises.
4. Search online for grant websites. There are a number of online websites that allow users to search for business grants. Conduct an internet search for “minority-owned business grants” and examine the search results carefully for relevant grants. In addition, the following websites also provide grant information:
   • Search BusinessGrants.org. This website provides links to other grant organizations. It also provides users with a warning that there are fake websites designed to scam unsuspecting users.
   • Search the Gates Foundation Website. The Bill and Melinda Gates Foundation provides grants for not-for-profit corporations as defined by 26 U.S.C. § 501(c) of the United States Internal Revenue Code, which includes charities, private foundations, and social clubs and business leagues. The website lists current grant opportunities at http://www.gatesfoundation.org/How-We-Work/General-Information/Grant-Opportunities.
   • Search the Minority Business Development Agency (MBDA) website. The MBDA provides information on grant competitions and federal funding for minority-owned businesses. You can search the website for grant opportunities at http://www.mbda.gov/main/grantcompetitions.

Applying for Minority-Owned Business Grants

1. Choose grants that reflect your business. All potential grants will set forth a list of eligibility criteria that you must meet in order to apply. It is important that you can clearly articulate how your business meets the eligibility requirements beyond being a minority-owned business. Some additional eligibility requirements can include:
   • Business entity type. Some grants may be limited to for-profit businesses, such as grants from Minority Business Development Agency. Grants may also require that the business applicant be a not-for-profit organization such as grants awarded by the Gates Foundation.
   • Limited to certain categories of business fields. Some grants may be limited to specific business fields. For instance, grants may be directed to companies that work in the environmental and natural resources fields or in technology.
   • Limited to certain locations. Grants offered by state governments or the federal government may be tied to specific locations. For instance, the Gillibrand guide directs readers to grants that are only for businesses located in rural communities, as well as grants limited to businesses in New York State.
2. Download your application. Most grant websites will either have you download a grant application or apply for the grant online. In either case, be sure that you have all of your supporting documentation available as you prepare your grant applications.
3. Write your grant proposal. Most grants require that you submit a grant proposal that outlines how you satisfy the eligibility criteria, your business aims, how you intend to use the funds, and a budget. In order to write a successful grant proposal you must:
   • Include all requested sections in your proposal.
   • Respond to all of the questions asked.
   • Closely edit your proposal for grammar and typographical errors.
   • Follow any formatting guidelines set forth in the instructions, including instructions related to font size, page limit or word count.
4. Complete all application questionnaires. You may be required to fill out questionnaires as part of your grant application. You must provide answers to any questions set forth in the grant application package and you must write legibly or type your responses.
5. Attach supporting documentation. You may also be required to attach copies of business information, minority-owned business certification, or other business or tax related documents. These documents must be included for your grant application to be considered.
6. Submit your application before the due date. Once you have completed your proposal and attached your supporting documentation, you are ready to submit your grant application. You should carefully follow the submission instructions set forth in the grant. Be sure to mail, submit electronically, or upload your completed grant before the due date and time. Grants received after that due date will not be reviewed or online systems may prevent you from uploading your application once the deadline has passed.
7. Wait for a decision on your grant. Most grants will give you some indication about the length of the decision-making process. You should not contact grant-reviewing agencies for a status update unless the specified time period has passed. You will be notified in a manner indicated in the grant’s instructions.
8. If your grant has been denied, start again. There is no limit to the amount of grants you can apply for, so find another grant, fill out and submit the application, and wait for your approval.

Tips

• Be sure to submit your grant application and supporting documentation before the due date.

Related Articles

• Apply for a Grant
• Get a Down Payment Grant
• Hire a Contract Grant Writer
• Find Grants
• Get What You Want from a Bureaucrat

Sources and Citations

See also

• Hire a Contract Grant Writer
• Apply for Free Personal Grants
• Get a Government Grant for a Farm in the U.S.
• Apply for Grants for Single Mothers
• Pay Medical Bills Through Grant Money
• Apply for a Government Small Business Grant
• Write a Letter of Interest for a Grant
• Apply for a Grant
• Apply For Small Business Grants For Women
• Find Grants

Read more ...

What links here

• Apply For Small Business Grants For Women
• Apply for a Government Small Business Grant