Empowering Diverse Founders: 9 Small Business Grants for Minority Entrepreneurs in 2024

Starting and scaling a business is never easy. But for minority entrepreneurs, the path is often steeper. Systemic barriers, discrimination, and a lack of access to capital and networks can make it difficult for diverse founders to get their ideas off the ground.

Consider these statistics:

  • Black entrepreneurs are nearly 3x more likely than white entrepreneurs to have business growth and profitability negatively impacted by a lack of financial capital (Ewing Marion Kauffman Foundation)
  • Latino-owned businesses are more likely to receive lower loan amounts than white-owned businesses, even when controlling for business performance (Stanford Institute for Economic Policy Research)
  • Just 3% of venture capital dollars went to Black and Latino founders in 2020 (Crunchbase)

Minority small business grants aim to help level the playing field by providing non-dilutive funding to diverse founders. These grants can be used to start a new business, maintain or expand an existing one, or recover from a setback like the COVID-19 pandemic.

For many entrepreneurs of color, grants provide a lifeline as well as validation. "Winning a grant gave me the confidence to keep going when things got tough," said Maxine Paul, founder of the Caribbean restaurant Calypso Kitchen and recipient of a $10,000 Comcast RISE grant in 2022. "It showed me that someone believed in my vision."

The Ripple Effect of Minority-Owned Businesses

When minority entrepreneurs thrive, so do their communities. Prior to the pandemic, minority-owned businesses:

Despite their economic might, many minority-owned businesses operate on razor-thin margins and lack the safety net to weather downturns. When COVID hit, 41% of Black-owned businesses closed their doors between February and April 2020, compared to 17% of white-owned businesses (National Bureau of Economic Research).

Supporting minority entrepreneurs through small business grants isn‘t just a nice thing to do—it‘s an investment in job creation, community development, innovation, and generational wealth-building. Here are some of the most promising grant opportunities for diverse founders in 2024.

Top Small Business Grants for Minority Entrepreneurs in 2024

1. Comcast RISE

The Comcast RISE program supports small businesses owned by people of color, with a focus on Black, Indigenous, and Hispanic founders. In 2024, RISE will award $10,000 grants to 100 businesses each quarter. Recipients also receive technology upgrades, marketing services, and business consulting.

To qualify, businesses must be at least 51% owned and operated by a person of color, registered to conduct business in the U.S., and have been operating for 3 or more years. Applications are reviewed on a rolling basis.

"The marketing resources I received through RISE helped me increase my digital presence and reach new audiences," said Alicia Villanueva, owner of Tamales Los Mayas and a 2023 RISE recipient. "I‘ve been able to grow my business and hire more employees, even during a challenging time."

2. SoGal Black Founder Startup Grant

Launched in 2020 by the largest global platform for diverse entrepreneurs and investors, the SoGal Foundation‘s Black Founder Startup Grant provides $10K and $5K cash grants to Black women or nonbinary entrepreneurs. Winners also receive tactical help navigating the startup world.

To qualify, founders must self-identify as Black, female, or nonbinary and have a legally registered business. The SoGal Foundation looks for companies that are scalable, high impact, and committed to improving access to capital for other entrepreneurs from underestimated backgrounds. Applications are accepted several times per year.

"Winning the SoGal grant felt like someone handing me the keys to my future," said Temidola Ikomi, co-founder of clean beauty brand Oui the People and a 2020 grant recipient. "The funding helped us keep the lights on during a difficult period, and the SoGal community has been an incredible source of support."

3. Fearless Fund

The Fearless Fund invests in women of color-led businesses seeking pre-seed, seed level, or Series A financing. Grants range from $20K to $50K. The fund is sector-agnostic and looks for scalable companies with diverse teams and powerful missions.

To be eligible, businesses must have a woman of color in a leadership role with a 20%+ ownership stake and a viable product or service. Fearless Fund also provides mentorship and resources to help funded companies succeed.

4. FedEx Small Business Grant

For the past decade, the FedEx Small Business Grant Contest has awarded over $1.6 million in cash and services to entrepreneurs. While not exclusively for minority-owned businesses, the contest strongly encourages applications from founders of color.

Each year, three tiers of grants are awarded:

  • Grand prize: One $50,000 cash grant, plus $4,000 in FedEx Office print services
  • 2nd place: One $30,000 cash grant, plus $2,500 in print services
  • 3rd place: Eight $15,000 cash grants, plus $1,000 in print services

To apply, businesses submit details about their mission, plans for the funds, and a short pitch video. The contest typically opens in early spring, with winners announced in the fall after a public voting period.

"Winning the FedEx grant gave us the boost we needed to take our eco-friendly cleaning products to the next level," said Nneka Onwuzo, CEO of The Okoa Project and a 2023 grant recipient. "We used the funds to rebrand, hire our first employee, and invest in marketing. It was a game-changer."

5. Invoice2go Grow Grants

In 2021, Invoice2go, a Bill.com company and leading mobile-first invoicing software provider, launched its inaugural Grow Grants program to support small businesses owned by people of color. Twenty grants of $15,000 each were awarded, plus free access to Invoice2go‘s invoicing and payments platform.

The program aims to break down systemic barriers that diverse entrepreneurs face in accessing capital, resources, and networks. "As a Latino founder myself, I know how much blood, sweat, and tears go into starting and growing a business," said Invoice2go CEO Mark Lenhard. "These grants are about more than just money—they‘re about investing in the dreams and potential of underrepresented small business owners."

To qualify, applicants must identify as a person of color, live in the U.S., and operate a business with less than $500,000 in annual revenue. The 2024 application window will open in the spring, with winners announced in late summer.

6. Amber Grant for Women

The Amber Grant helps women achieve their entrepreneurial dreams with a $10,000 monthly grant and an additional $25,000 end-of-year grant. While not exclusively for women of color, the program is open to all self-identifying female founders in the U.S. and Canada.

The application is refreshingly simple: just explain your business idea and how you plan to use the funds. Judges look for passion and potential rather than perfect pitches. The grant commemorates Amber Wigdahl, a young entrepreneur who passed away in 1981 before achieving her business goals.

"Winning the Amber Grant validated my belief in my company and gave me the confidence to keep pushing forward," said LaToya Stirrup, founder of hair care brand Kazmaleje and a 2020 Amber Grant recipient. "The funding allowed me to launch new products and expand my customer base."

7. Minority Business Development Agency Grants

The Minority Business Development Agency (MBDA), a federal agency dedicated to supporting minority-owned firms, offers several grant competitions throughout the year. While the specifics vary, MBDA grants typically fund projects that help minority businesses grow, innovate, and create jobs.

For example, the 2022 Minority Business Enterprise Inner City Innovation Hub grant provided $1.2 million to organizations offering incubation, acceleration, and technical assistance services to minority firms in inner cities. The 2023 Entrepreneurship Education Program for Formerly Incarcerated Persons grant awarded $3 million to organizations helping formerly incarcerated individuals start and grow businesses.

To stay up to date on MBDA funding opportunities, sign up for their email list and regularly check grants.gov. While MBDA grants are often awarded to nonprofits or educational institutions rather than directly to small businesses, those organizations partner with and support diverse entrepreneurs.

8. National Association for the Self-Employed (NASE) Growth Grants

Since 2006, the NASE has awarded nearly $1,000,000 to entrepreneurs through its Growth Grants program. These $4,000 grants help small businesses hire employees, invest in marketing, buy equipment, and more.

To apply for an NASE Growth Grant, you must be an NASE member in good standing for at least 3 months. Members can apply year-round and grants are awarded quarterly. While not dedicated exclusively to minority-owned businesses, NASE encourages applications from diverse founders.

9. The USDA Rural Business Development Grant (RBDG) program

The RBDG program provides grants to small businesses with fewer than 50 employees in rural areas. Funds can be used for training, technical assistance, acquisition or development of land, or equipment purchases.

While the RBDG program doesn‘t specifically target minority entrepreneurs, it can be a valuable resource for rural business owners of color. In 2021, RBDG grants ranging from $22,000 to $500,000 were awarded to projects in Tribal communities, persistent poverty areas, and rural regions with large minority populations.

To apply for an RBDG grant, contact your nearest USDA Rural Development office. Applications are typically due in the spring.

Tips for Finding and Securing Small Business Grants for Minority Entrepreneurs

  1. Start with your local community. Many cities, counties, and states offer small business grants for underrepresented founders. Check with your chamber of commerce, economic development office, or minority business center for opportunities.

  2. Look for grants specific to your industry, location, or demographic. Narrow your search by focusing on funding earmarked for your particular niche.

  3. Don‘t ignore small grants. Even a $500 grant can help cover essential expenses or buy a new piece of equipment. Small wins can add up.

  4. Make sure you meet all eligibility requirements before applying. Read the fine print carefully to avoid wasting time on grants you don‘t qualify for.

  5. Tailor each application to the specific grant. Cookie-cutter responses won‘t cut it. Research the organization offering the grant and emphasize how your business aligns with their mission.

  6. Use compelling data to highlight your business‘s potential. How many jobs will you create? How much revenue do you expect to generate? Numbers speak volumes.

  7. Proofread your application and have a mentor or colleague review it. Typos and mistakes can automatically disqualify you in a competitive grant process.

  8. Apply for multiple grants simultaneously. Putting all your eggs in one basket reduces your chances of securing funding. A wide net catches more fish.

  9. If you don‘t succeed at first, try again. Many grant programs allow repeat applications. Use feedback to refine your pitch for the next round.

The Future of Minority Entrepreneurship

Minority-owned businesses are driving job creation and economic growth in the U.S. As the country becomes more diverse, their impact will only grow. By 2044, people of color are projected to make up more than half the U.S. population (Census Bureau).

But for these businesses to reach their full potential, we need to create a more level playing field. Lack of access to capital remains a stubborn barrier for minority entrepreneurs. While small business grants are helping to fill the gap, much more needs to be done.

Governments can play a role by targeting more stimulus, procurement contracts, and small business assistance to minority-owned firms. Banks and lenders must proactively work to combat bias and discrimination in small business lending. And corporations and private funders can step up by earmarking more grant dollars for diverse founders.

The public and private sectors must also continue to invest in entrepreneurial education, mentorship, and support services for minority business owners. Creating a robust ecosystem for diverse entrepreneurs will benefit individual businesses and the broader economy.

Despite the challenges, minority entrepreneurs are finding innovative ways to launch, grow, and scale successful businesses. With talent, tenacity, and a little external support, these ventures are poised to soar in 2024 and beyond.

"Being a minority small business owner isn‘t easy, but it‘s so rewarding," said Erika Marrero, owner of Miami-based printing company Demand Driven and a 2021 Comcast RISE grant recipient. "Every day, I get to create jobs, serve my community, and pave the way for the next generation of diverse founders. It‘s hard work, but it‘s heart work."

In 2024, let‘s all resolve to support the heart work of minority entrepreneurs. When their businesses thrive, we all win.

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