It takes money to make money. Have you heard that statement? While it is not always true in some cases, it is a generally accepted fact when it comes to starting a business. Generally speaking, starting up a business requires a hefty financial asset, and yet sometimes it is still not enough. That’s why any financial help would mean a lot.
Although it may sound like a logical thing to provide, unfortunately, the government does not have a specific program for direct minority small business grant for business start-up. I am sure many people are wondering: how come the Federal government doesn’t support the chance of economic growth for people from lower income?
This is another false assumption many people think after knowing that there is no grant program for small business. The Federal government does support the small businesses through various programs and grants, but they are NOT distributed to individual owners. Instead, the money goes to state government or responsible agencies to provide support services for small businesses.
Government Grants for Small Business Owned by Minorities
Below are Some of the examples of minority grants provider for small business start-up:
Small Business Administration Grant
Minority small business owners can benefit from the SBA grant program, even though it’s not a financial support. The program funds technical help, training, and assistance in building the capacity of the business owned by individuals who have a minority background.
Rural Business Opportunity Grant
Just like the SBA grant program, this is not a financial aid for individual small business owners. The program is under the Department of Agriculture, and it is available for people who are starting up a business in rural area. Much like the SBA program, this Rural Business Opportunity grant program will provide technical assistance, as well as trainings needed to develop your business.
Now that you know that there’s no exact Federal Government financial aid program for individuals, let’s explore other options. First off, instead of hoping for a program from the Federal Government, it is better to search for such grant from your local government instead. Each state have their own policy regarding this, so go to your state’s Department of Economic Development or equivalent agencies. There may be a grant program for minority small businesses. The requirement differs in each state, but in general, your business should already be around for a period of time, you are the first-time owner, and the income is relatively low.
Grant-Like Programs for Minority Small Business
There are some programs that is quite similar to grants, even though there’s some kind of a string attached to it. Some of them are:
Individual Development Account
It’s an interesting program that encourages people to save money. The IDA works like a bank account, so you would have to save money there to be eligible for the grant. The amount of money you will receive is equal to the amount of money you save. Of course, this program provides such benefit only for deserving business owners whose revenue is less than $50,000. Visit Development Account administration office for more information on this opportunity.
Regional Investment Board’s Forgivable Loan
If you are eligible for forgivable loan means that you will receive some amount of money without having to pay it back. However, the loan usually has some requirements needed to be fulfilled before it becomes a forgivable loan. Administered by the Regional Investment Board, this program have different requirement in every state so it is a good idea to visit your local government office for more information. It is also important to note that the program may not be available in some states.
Other notable source of minority small business grants are from corporations and foundations, which usually comes in the form of competitive grant.
- Minority-Owned Businesses
- Minority Business Development Agency
- 6 Capital Funding Sources for Minority Businesses
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