How to Apply for Minority-Owned Business Grants

For minority business owners and entrepreneurs who are looking for funding, grants can be a great option. Unlike loans for minority business owners, grants do not create debt or require repayment because they are, in essence, free money. Although minority business grants are often competitive to secure, they can definitely be worth the lengthy documentation process if you’re motivated and organized.

Here’s how to apply for minority business grants — and increase your chances of getting approved.

How to apply for minority business grants.

To apply for a minority business grant, you’ll need to register your minority-owned business, find the right opportunities, gather key documents, and submit a strong proposal before the deadline. While it can be competitive, applying for grant programs can be beneficial, since they don’t require repayment and often come with additional benefits like mentorship, networking opportunities and business training programs.

5 steps to apply for minority business grants.

1. Register your business.

Before you apply for grants, your business must be legally registered — and in many cases certified — as a minority-owned business so the earlier, the better. Here’s how to get started:

Register your business entity. This will establish your business as a distinct legal entity. Do this through your state’s Secretary of State office with your specific business structure.

Get a federal Employer Identification Number. If you haven’t already, you might need to apply for your EIN from the IRS as well. This may be optional for sole proprietorships and entrepreneurs.

Apply for a D‑U‑N‑S Number. This number, available online from Dun & Bradstreet, is also required for some federal grants.

If you want to apply for grants that prioritize or require minority-owned status, you’ll likely need to certify your business. Here’s where to get certified:

SBA 8(a) Program. This program is for small disadvantaged businesses that are 51% socially and economically disadvantaged and already SBA-certified by the U.S. Small Business Administration.

National Minority Supplier Development Council (NMSDC). This certification from NMSDC is for minority business enterprises, or MBEs. It is widely recognized and can connect you with additional corporate and public sector resources, government contracts and funding opportunities.

State or local supplier diversity offices. These vary by region but are often tied to procurement programs and partnerships for small business owners and startups. To qualify, your business will likely need to be at least 51% owned, controlled and operated by someone who identifies as part of a recognized minority group. Certification can expand your access to both grants and contract opportunities.

2. Research grant opportunities.

Look for grants and federal funding that fit your business type and goals. There are a wide range of federal, state, local, nonprofit and corporate grant programs available to minority entrepreneurs and minority small businesses. From government grants to private economic development funding, these resources can help you scale-up and grow your business without repayment. Start with:

Federal government grants. Check out Grants.gov for a central database of federal grants and government funding. Many federal agencies also promote financial assistance directly on their websites.

U.S. Small Business Administration. In addition to the 8(a) Business Development program, the SBA supports women-owned, underrepresented and small, disadvantaged businesses.

Private or public corporations. Fifteen Percent Pledge and the Ingredients for Success initiative are just two examples you might want to learn about.

Chambers of commerce and nonprofit organizations. Explore funding options offered through NAACP or local organizations in your own area.

As part of the U.S. Department of Commerce, the Minority Business Development Agency (MBDA) can connect you with an MBDA small business development center for help with capital, federal contracting or whatever stage of your business journey you are in. It does not, however, issue small business grants or minority-owned business loans directly.

3. Gather your documents.

Before starting the application process, take time to get organized. Documentation can slow you down — or disqualify you entirely if anything is missing or inaccurate.

Before you apply, you’ll want to have these commonly required documents:

• A business plan or summary.
• Financial statements, annual revenue or revenue projections.
• Minority ownership verification.
• Required licenses or registrations.

In addition to the basics like your business plan and EIN, some grantors may have additional eligibility requirements or ask you to provide past tax returns, proof of insurance, your business credit score or a list of current employees.

4. Write your grant application.

A grant application explains what your business does, why it matters, and how you’ll use the funding to make an impact. It should be honest, clear and written for someone who may not know your industry or challenges.

Most grant applications include:

• A concise summary of your business.
• Specific funding needs (how much, for what).
• Expected outcomes or community impact.
• Any supporting data or quotes.

Remember, the best proposals aren’t flashy — they’re focused and tailored. If you’re stuck, looking at past proposals (some websites offer examples) or drafting your answers to stay on-message is always a good idea.

5. Submit your application.

Before you hit submit, proofread everything and make sure that you’re including all the required materials. When possible, submit your application early to prevent any issues and avoid technical assistance.

And remember — standing out doesn’t stop at “submit.” Here are a few smart ways to stay top of mind without going overboard:

• Send a brief, professional follow-up when allowed.
• Stay engaged in the grantor’s ecosystem.
• Keep track of any reapplication windows if you don’t win the first attempt.
• Send a thank-you note after the decision, win or lose.

Save a copy and confirmation of your application. Even if you’re not selected, applying builds your experience and visibility. And you can also look to small business loans such as term loans and business lines of credit to fund your next big project or investment.

How do grants help small businesses?

Grants help small businesses by providing funding that usually doesn’t need to be repaid — as long as it’s used according to the terms. Winning a grant can also build credibility. It shows your business has a strong plan and may attract support from lenders, partners or investors.

The Bottom Line

Minority-owned business grants can help you fund growth without giving up equity or taking on debt. Start with registration and certification, then find and apply to grants that align with your business’s goals and impact. Whether you’re an early-stage or established business, there is a lot of grant funding available if you know where to look. Applying takes effort — but even one win can make a big difference.