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Grants for Black-Owned Businesses
If you are a Black business owner, you are actively contributing to a tremendously vital economy. You also know that securing financial resources is a must for businesses aiming to launch, expand, or sustain their operations. At American Funding Group, we assist businesses across the US to qualify for and obtain these valuable grants, supporting innovation, growth, and success.
What Is A Business Grant?
A small-business grant is an award, usually financial, given by one entity (typically a company, foundation, or government) to a company to facilitate a goal or incentivize performance. Grants are essentially gifts that usually do not have to be paid back. Small-business grants are targeted for a variety of purposes, from starting a company or helping it run more efficiently to aiding its expansion. The five main grant types for small businesses are: federal, state or regional, corporate, specialty, and startup. Each type targets different business needs and stages of development. Business grants for minorities are financial awards provided by government agencies, private organizations, or foundations specifically designed to support and empower female entrepreneurs by offering funds that do not need to be repaid, helping them start, grow, and sustain their businesses.
Black-Owned Businesses Statistics
Black-owned businesses play a crucial role in the U.S. economy, contributing significantly to job creation, innovation, and economic growth. According to the Small Business Administration, Black business owners own 3.5 million businesses and employ more than 1.2 million people.
Here are some key statistics about Black-owned businesses in the U.S:
More than one-in-five Black adults in the United States say owning a business is essential to financial success, according to a September 2023 Pew Research Center survey.
Black or African American majority-owned firms provided income for roughly 1.4 million workers in 2021. Their annual payrolls were estimated at $53.6 billion.
About 45,000 of the roughly 161,000 U.S. companies with majority Black or African American ownership, or 28% of the total, are in the healthcare and social assistance sector. In fact, 7% of all classifiable U.S. businesses in the health care and social assistance sector were majority Black-owned.
Florida, California, and Georgia have the highest numbers of Black-owned businesses.
Black majority-owned businesses made up the greatest share of all classifiable firms in the District of Columbia (15%), Georgia and Maryland (8% each).
If you are a Black entrepreneur, you are part of a dynamic and growing community that significantly impacts the U.S. economy. Your business not only provides valuable goods and services but also creates jobs and fosters economic growth in your community and beyond.
Benefits Of Grants for Black-Owned Businesses
Grants for African American businesses offer multiple benefits for the growth and success of your enterprise.
Here are some key benefits of business grants:
No Repayment Required: Unlike loans, grants do not need to be repaid. This means businesses can utilize the funds without worrying about interest rates or debt accumulation, freeing them to focus on growth and development.
Access to Capital: Grants provide essential capital that can be used for various purposes, including marketing, hiring, purchasing equipment, and expanding facilities. This type of financial boost can be a game-changer for small businesses looking to scale.
Economic Development: Grants aim to stimulate local economies by supporting businesses that create jobs and contribute to community well-being. By securing a grant, your business can actively participate in regional development initiatives, contributing to the growth and prosperity of your community.
Recognition and Credibility: Receiving a grant can positively impact your business's reputation, signaling to customers, employers, and partners that the company is credible and worthy of support.
Types of Black-Owned Businesses That Can Qualify for Grants
African American businesses have access to a wide range of grant opportunities, for various industries and business types. At American Funding Group, we help businesses across all sectors navigate the grant application process. Here are some examples of businesses that can qualify for grants:
Construction Firms: With the help of business grants, construction businesses can work more efficiently, keep their workers safer, and use environmentally friendly practices. Grants help them stay competitive and continue to contribute to the state's growth.
Trucking Companies: According to Zippia, Black-owned trucking companies currently make up about 12.06 percent of the trucking industry. With the help of business grants, trucking businesses can fund initiatives such as fleet expansion, technology upgrades, driver training programs, and more.
Restaurants: According to the National Restaurant Association, there were approximately 375,000 black-owned restaurants in the United States in 2020, representing 8% of all restaurants in the country. Black-owned restaurants are eligible for a variety of business grants, ranging from local to nationwide. These funds can be allocated towards initiatives like menu innovation, marketing efforts, equipment upgrades, and staff training programs.
Healthcare, childcare and social assistance: 7% of all classifiable U.S. businesses in the health care and social assistance sector were majority Black-owned. Business grants can cover the costs of leasing new office space, purchasing medical equipment, and marketing the new locations to attract clients. A home healthcare agency could use grant funds to open new branches in underserved areas, increasing access to essential healthcare services for more patients.
Small Business Grant Options For Black Businesses: Receive Free Money For Your Business
Our database contains hundreds of grant opportunities for African American businesses. Below are just some of the many grants available to businesses like yours:
Minority Business Development Agency (MBDA): The MBDA offers various grants to minority-owned businesses, focusing on innovation, research, and development. They provide resources for business development, including networking opportunities, technical assistance, and access to capital.
National Black MBA Association (NBMBAA) Scale-Up Pitch Challenge: This competition provides Black entrepreneurs with the chance to pitch their business ideas for funding. Winners receive significant financial support, mentorship, and exposure to potential investors and industry leaders.
NAACP Entrepreneur Grant Program: The NAACP offers grants to Black-owned businesses to help address economic disparities. These grants aim to support entrepreneurs in various stages of their business development, from startups to established enterprises.
Comcast RISE: Comcast RISE offers grants, marketing consultations, media placements, and technology makeovers to Black-owned businesses. This initiative helps small businesses gain visibility and improve their operations through substantial resources and support.
FedEx Small Business Grant Contest: This contest provides financial grants and business services to small businesses, including those that are Black-owned. Winners receive funding, FedEx Office print services, and access to FedEx's global shipping network to help grow their businesses.
BeyGOOD Black-Owned Small Business Impact Fund: Founded by Beyoncé, this fund provides grants to support Black-owned small businesses affected by economic challenges. The program aims to promote economic empowerment and sustainability within the Black business community.
Fearless Fund: This fund invests in and provides grants to businesses owned by women of color. It aims to address the funding disparities faced by minority women entrepreneurs by offering financial support and resources to help scale their businesses.
Arkansas-based Kinetic Business, a fiber internet company by Windstream, is offering up to $2,500 in Black Business Support Fund grants for Black-owned small businesses in their service area.
The NAACP and Bacardi partnered to create $10,000 Backing the BAR grants for Black-owned businesses in the hospitality industry with liquor licenses (or seeking one). In addition to the money, grant recipients have access to education and business support in order to accelerate their businesses.
Federal Grants: Grants.gov catalogs federal grants and provides additional information for those interested in applying. Some grant providers require applicants to register on The System for Award Management (SAM). For research and development focused businesses, the Small Business Innovative Research and Small Business Technology Transfer Funding programs may be of interest.
Are you a Black entrepreneur ready to take your business to the next level? Now is the perfect time to seize the opportunities available to you! From local Small Business Development Centers (SBDCs) to national and private grant programs, the resources are at your fingertips.
Requirements for Black Entrepreneurs Applying For Business Grants:
Applying for business grants as an African American entrepreneur involves several key requirements and steps to ensure your application is competitive. At American Funding Group, we have streamlined the requirements to create a straightforward application process for you:
You must be a business owner in the United States
You must have an active LLC, S-Corp, or S-Corp and an Employer Identification Number (EIN)
You will be able to fill out one form with American Funding Group and answer 30+ questions to be paired with our best grant.
State-Specific Grants for Black Business Owners
Business grants are available for Black entrepreneurs from every state. Some grants are county-specific, supporting the goals of local communities and economic development. Other grants are available regardless of the county or state in which your business is located. We have helped entrepreneurs from all over the country apply for grants and obtain funding:
✓ Alabama
✓ Alaska
✓ Arizona
✓ Arkansas
✓ California
✓ Colorado
✓ Connecticut
✓ Delaware
✓ Florida
✓ Georgia
✓ Hawaii
✓Idaho
✓ Illinois
✓ Indiana
✓ Iowa
✓ Kansas
✓ Kentucky
✓ Louisiana
✓ Maine
✓ Maryland
✓ Massachusetts
✓ Michigan
✓ Minnesota
✓ Mississippi
✓ Missouri
✓ Montana
✓ Nebraska
✓ Nevada
✓ New Hampshire
✓ New Jersey
✓ New Mexico
✓ New York
✓ North Carolina
✓ North Dakota
✓ Ohio
✓ Oklahoma
✓ Oregon
✓ Pennsylvania
✓ Rhode Island
✓ South Carolina
✓ South Dakota
✓ Tennessee
✓ Texas
✓ Utah
✓ Vermont
✓ Virginia
✓ Washington
✓ West Virginia
✓ Wisconsin
✓ Wyoming
American Funding Group Helps Black-Owned Businesses Obtain Grants and Funding
Navigating grant applications can be daunting, especially for busy entrepreneurs managing various tasks. At American Funding Group, we specialize in helping business owners identify and secure the necessary grants to support their growth and success.
Here's how we support businesses through the process:
✓ You fill out a single application form on our website.
✓ Our system searches 7,000 grants
✓ Auto-apply for grants every month with our portal
✓ Grants are provided and distributed by private and federally-funded institutions listed on:
https://a4cb.org/services/grants
https://www.decaturedc.com/b2b
✓ The average approval rate for obtaining a grant is 30% to 40%.
✓ Once your grant is approved, it may take the grantor who approved it 30 to 90 days to distribute the funds to you.
Apply For Grant Funding Today
Grants offer Black-owned businesses a valuable chance to secure the funding needed for growth and success. Whether launching a new venture, expanding an existing one, or seeking specialized support as a minority entrepreneur, various grant programs are available to help achieve these goals.
At American Funding Group, we streamline the grant application process for you, so you can secure funding and take your business to the next level. Tap into your business's potential with American Funding Group and take the first step to apply for a business grant today.
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