Business grants for black women are federal financial assistance to support Black-owned businesses. It is one of the ways the government funds the ideas and projects of black women to the benefit of public service and the economy of the country as a whole.
The most quick-growing group of small business owners in the US are black women. The rates at which they start a business more than any other group these days are increasing.
Unfortunately, according to a valid source, only a small percentage of Black business owners receive loans. And because of the unfavorable act, many organizations are going against it which brings about the recent funding of black women’s businesses
The funding helps young entrepreneurs to grow their businesses to the highest level.
Below you will find out a list of the 10 business grants for black women to start your business. Read on.
You Will Learn:
- What business grants are.
- How to get money to start a business as a woman.
- The 10 best business grants for Black women to start your business.
What Are Business Grants?
Business Grants are federal financial assistance rendered to young entrepreneurs to enhance their startup businesses for the productive outcome which also is beneficial to the public as a whole.
The federal government offers these grants only when the ideas or projects the business owner(s) has will bring wealth to the citizens of the country.
Also, receiving business grants creates a public figure for your business. It assists an entrepreneur to attain credibility from other organizations, investors, and potential leads.
But the downside of receiving a business grant is that it does not come freely. Because it is used to support the growth of a small business, the entrepreneur will need to create jobs at a rate equivalent to the concord between him and the grant provider. Also, some grants only come in small percentages while some can be as high as 50%.
How To Get Money To Start A Business As A Woman
Since society is incomplete without a woman’s contribution in every sector including the business sector, aside from grants, here are 6 ways a woman can raise money to start a business.
1. Through Business Credit Cards
Though you can get money to start a business with your credit card, it is quite advisable to use the business credit card which is mainly for business expenses.
Credit cards support one’s business but are mindful of the interest rates as a credit card with high interest may lead to a high debt balance in your business.
Also, as a woman, you can get money to start your business through savings. This is the most certain way.
Most small business founders use their savings to fund their businesses initially before requesting business grants.
Here is how to enhance your savings:
- Fix an automated deduction from your monthly income account to your savings account.
- Set up a budget plan. It reduces unnecessary spending and increases savings power.
- Sell used property you no longer need.
- Use a low-interest credit card, it reduces your credit card debt.
With the aforementioned fact, you can increase your savings and get enough money to start a business as a woman.
3. Bank Loans
Another way to get money to start a business as a woman is through bank loans. Some financial institutions do not approve loans for small businesses due to the uncertainty of their credit score.
Thus, apply for a loan from your bank. It will approve the loan application due to its familiarity with your credit history. With this, you can get some money to start your business.
4. Personal Loan
It is mainly gotten from family members and friends. You can use such a loan to start your business.
Statement: To avert vagueness and create an atmosphere of clarity, ensure you put the loan amount, term, and interest rate in writing.
Crowdfunding is a group of people on a site that offers a loan to fund one’s business when requested.
The only thing is that they receive a gift as a payback for their support.
6. Corporate Programs
As a woman, you can get money to start a business through this organizational program. It supports small businesses. All you need to do is get the right corporate program for your business.
The 10 Best Business Grants For Black Women To Start Your Business
For small business owners looking forward to building their businesses and credit history, below is a list of grants to support your business.
1. Coalition To Back Black Business
The Coalition was founded by the US Chambers of Commerce Foundation in collaboration with nine other businesses.
It provides over $14 million in grants to support and empower black-owned small businesses.
- It offers enough grants to support your business.
- It is only for Black-owned businesses.
- It has collaborators.
- An entrepreneur must be located in an economically susceptible community.
- It must be a Black-owner business in an eligible industry.
2. The Amber Grant
The Amber Grant, one of the 10 business grants for black women was established in 1998 by WomensNet. The WomensNet offers a $30,000 grant to those who meet the standards for funding. It also gives $10,000 monthly and $25,000 yearly grants.
Below are some of the grants the WomensNet provides.
- Mini-Grants: It is a small grant of $20,000 disbursed in the year.
- Business grants: This is a $10,000 grant given to businesses of certain levels to support them.
- The Marketing Grant: A marketing grant is free marketing support given to business owners to help grow their businesses.
- The Non-Profit Grant: The Amber Grant gives a $10,000 award to a nonprofit organization every quarter.
To qualify for this grant, you must be a black woman with 50% ownership of the business. Also, the business must be located in the US.
3. Capital One Business Grant Program
To support black women entrepreneurs during the COVID, Capital One launched a program in 2022 in partnership with the Association for Enterprise Opportunity (AEO). It provided a $10,000 award during the pandemic. Aside from that, it offers free resources to the grantees through Capital One’s Business Center.
4. The Power Forward Small Business Grant
It empowers Black women’s small businesses across England. It partners with NAACP to provide $25,000 grants on a rotation.
It features the recipients on National Co-branded platforms where they receive customized marketing and design resources to help grow their business.
To get the grant, your business must have few members (25 employees), and the applicant for the grant must illustrate the impact of the business on society and how they plan to use the $25,000 business grant
5. The SoGal Grant
The SoGal provides $5,000 and $10,000 cash grants to support Black women’s businesses.
The recipients have access to the SoGal Foundation SoGal Venture Team. The recipients also get support in finding further funding opportunities to scale their businesses.
To qualify for the grant,
- Your businesses must be legally registered.
- You must be a Black woman entrepreneur.
- You must have the plan to scale higher in your business.
6. FedEx Grant
FedEx’s small business grant program was founded in 2012 to support small businesses.
It focuses on small business owners, creating the opportunity for Black women’s small business owners to receive a grant to grow their businesses.
It has awarded a $1.5 million cash grant to over 100 small businesses.
To qualify for such a grant, your business must,
- Have less than 99 employees
- Be for profit.
- Have been in operation for six months
- Have a FedEx account number
7. Sage Grant
Sage, a leading provider of integrated accounting and an online community of entrepreneurial and professional women, launched a program, the Invest in Progress Grant which offers each Black woman $10,000 grants annually to start and grow their businesses.
To receive the grant, you must,
- Be a Black woman entrepreneur
- Have a clarified need for funds
- A founder of a five-year business for profit.
- Be willing to partake in a virtual business mentoring program.
8. The New Voice Fund
SheaMoisture launched the New Voice Fund in 2018 to support both aspiring and existing entrepreneurs to start and grow their businesses.
SheaMoisture had launched many grant programs that helped Black women access entrepreneurial training and education.
The training enlightens more on how to start and grow your small business to become for-profit to society at large.
9. The National Black MBA Association
The Scale-up Pitch Challenge is the National Black MBA Association inaugurated in 2017 to assist small business owners to connect with venture capitalists to grow their small businesses.
The program allows small business owners to win a $50,000 grand prize. It also offers a second and third grand prize of $10,000 and $7,500, respectively.
To qualify, you must,
- Be an adult resident of the US.
- Have a team member who actively participates in the National Black MBA Association.
- Be a Black woman business owner.
10. The Annuity Freedom BIPOC Small Business Grant
The Annuity Freedom BIPOC Small Business Grant was established after the negative effect of COVID on the Black-women businesses.
The grant does not come in cash but in marketing support. It offers free SEO advice, evaluation, and planning and also drives organic search traffic for the business to grow online.
The fastest-growing group of small business owners is black women. Initially, only a small percentage of black women business owners were offered a loan to support their business, but recently, they are massively supported due to the protest of many against the unfavorable act.
The Business grants for Black women specifically provide grants either in cash or marketing support to assist Black women entrepreneurs to grow their small businesses.
As a Black woman entrepreneur, you can receive a grant to start your business.
Here are answers to some of your questions about business grants for Black women.
Do I have To Reimburse My Small Business Grant?
No. Typically, grants are not paid back.
What Is The Biggest Small Business Grant Program?
The biggest small business grant program is $4 billion.
What Does Black Business Impact Fund Mean?
Black Business Impact Fund is the newly developed fund designed to finance new Black Business Founders to create a channel and ensure black businesses are developed.
Which Is The Black Founder Small Business Grant?
The Black Founder Small business grant is $10,000 from the SoGal Foundation and other sponsors of business grants for black women.
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