Top 10 Grants Available to Black, Minority Business Owners

(BLack PR Wire) Every year billions of dollars are awarded in the form of free money and other types of funding. Most people know this money exists, but just don’t know where to apply, how much they qualify for, or even where to get an application. Contrary to popular belief, free money is available to entrepreneurs. Real business grants do exist. In fact, hundreds of black and minority-owned businesses each year receive such grant funding from various government agencies and nonprofit organizations, reports BlackNews.com. Such funds do not have to be repaid, but must be used to either start a new business or enhance an existing one. Others can be used for innovation research.

Whether needed for growth or startup business funding, here are the top 10 grants available to black, minority business owners

 1. The FedEx Small Business Grant Contest is a nationwide competition that will award $50,000 in total to six deserving U.S-based entrepreneurs and business owners. Go to www.businessgrants.org/opportunities/fedex_small_business_grant_contest.html

2. The National Association for the Self Employed (NASE) Growth Grants Program allows business owners to apply for financing a particular small business need. Past recipients used funds to purchase computers, hire part-time help, and create marketing materials. Visit www.businessgrants.org/opportunities/national_association_self_employed_nase_business_grants.html

3. The Dare to Dream Grant Program encourages students to move through the business creation process by offering business development seminars and up to $10,000 in funding. Learn more at www.businessgrants.org/opportunities/dare_to_dream_grant_program.html

4. The Miller Lite Tap the Future Business Plan Competition (formerly known as the MillerCoors Urban Entrepreneur Series) is an annual competition for minority business owners sponsored by Miller Lite. Designed to economically empower minority businesses, the program continues to invest in entrepreneurial dreams to empower urban communities. Learn more at MLTaptheFuture.com

RELATED: MBDA Announces Grant to Launch Business Centers

5. The Small Business Administration (SBA) administers several competitive business grant programs, ensuring that the nation’s small, high-tech, innovative businesses are a significant part of the federal government’s research and development efforts. Check out www.businessgrants.org/opportunities/sbir_small_business_research_innovation_grants.html

6. The Minority Business Development Agency (MBDA) organizes various angel investors with the primary objective of supporting minority businesses with mezzanine and second round financing. Learn more at www.businessgrants.org/opportunities/minority_business_development_agency_mbda_business_grants.html

7. The Rural Business Enterprise Grants (RBEG) Program provides grants to finance the development of small and emerging businesses in rural areas. The funds can be used for land acquisition, construction, renovation, technical assistance, project planning, and more. Visit www.businessgrants.org/opportunities/rural_business_enterprise_grants_rbeg_program.html

8. The Huggies MomInspired Grant Program awards grants and business resources to moms to further the development of original product ideas and startup businesses. Learn more at www.businessgrants.org/opportunities/huggies_mom_inspired_grant_program.html

9. The DOT Disadvantaged Business Enterprise (DBE) program is intended to ensure nondiscrimination in the award and administration of DOT-assisted contracts in the Department’s highway, transit, airport, and highway safety financial assistance programs. Learn more at www.businessgrants.org/opportunities/dot_disadvantaged_business_enterprise_program.html

10. The Small Business Innovation Research (SBIR) program provides grant funding to small businesses to engage in biomedical or behavioral research/development that leads to a potential for commercialization. Go to www.businessgrants.org/opportunities/sbir_small_business_research_innovation_grants.html

How to Get Certified As a Minority-Owned Business

In 2012, the U.S. Census Bureau reported that there were 8 million minority-owned businesses in the U.S. That’s a huge number of business owners looking for opportunities to achieve the American dream and make it as a successful entrepreneur.

If you own one of those businesses, becoming certified as a minority-owned business allows you to access certain government and private-sector programs that can help support your efforts. Here are three certifications/qualifications that can help minority business owners get support for their venture.

The U.S. Department of Transportation (DOT) DBE Certification

The DOT developed the Disadvantaged Business Enterprise (DBE) Certification to assist DBE companies that wish to compete for federally assisted highway, transit, airport and highway safety contracts. Any state or local government that receives DOT funding must maintain a DBE program that conforms to DOT standards.

Eligibility standards state that you must be in a socially and economically disadvantaged group and own 51% or more of a small business. The DOT uses the definition of “presumed groups” as defined in the next section. Other individuals may prove their disadvantaged status based on the DOT standards — these are handled on a case-by-case basis and is intended for groups that have disproportionately low incomes and high unemployment rates.

Contact your state Department of Transportation to learn how to apply for DBE Certification.

The 8(a) Business Development Program

The 8(a) Business Development Program was created by the Small Business Administration (SBA) to help disadvantaged businesses compete in the marketplace. This nine-year program provides business assistance to help disadvantaged businesses succeed in government contracting and in competing for commercial business. The goal of the program is to “graduate” companies that will thrive in today’s competitive environment. Before you can apply for the program, however, you need to qualify as a socially disadvantaged individual.

Some minority groups automatically qualify as “presumed groups,” meaning they are presumed to be socially and economically disadvantaged and can apply to the program. These groups include African Americans, Hispanic Americans, Native Americans, Asian Pacific Americans and Subcontinent Asian Americans. In addition, Alaska Native Corporations, Indian Tribes, Native Hawaiian Organizations and Community Development Corporations can also apply to the program.

Besides being in a presumed group, there are other SBA requirements that must be met by the owners of the business and the business itself. You can review the steps in the application process on the SBA website. Qualifying as a socially disadvantaged individual isn’t technically a “certification,” but the program is large enough that we wanted to include these standards in the article.

There are a number of benefits offered by the program. For instance, participants can receive sole-source contracts and can form joint ventures and teams to strengthen their position when bidding on contracts. In addition, the Mentor-Protégé Program pairs successful firms with companies new to the program. The mentors provide a range of assistance, including technical expertise, contracting help and more.

Getting a foot in the door at the SBA can help you understand the process for accessing government grants, contracts and can even open doors to understanding how to qualify for SBA loans — the gold standard when it comes to business financing for growth and expansion. Those loans can be some of the most difficult to qualify for, especially if you haven’t established a business credit score.

The National Minority Supplier Development Council’s MBE Certification

The National Minority Supplier Development Council (NMSC) is a trade group that supports certified minority business enterprises in obtaining new business opportunities and connects them to their network, which includes corporate members. Their goal is to help MBEs integrate into industry supply chains and to help corporate members meet the increasing call for supplier diversity. The council’s efforts match more than 12,000 MBEs to their impressive network of corporate members.

The council’s regional affiliates coordinate the MBE certification process, and you’ll want to start your application by contacting the affiliate closest to your company’s headquarters. You can visit NMSDC Central to learn more about applying for certification and completing the MBE Certification Application.

This is not a government-affiliated program like the 8(a) and DBE certification. There is an application fee for processing the application. The application process also includes a site visit and interview. The Council’s Certification Committee will review your application, and final approval is issued by the Council’s Board after a review of the committee’s recommendations.

In general, your business may apply for certification if the company is 51% owned and operated by minority individuals who are U.S. citizens. The minority ownership members must manage the company’s daily operations, and it must be a for-profit enterprise located in the U.S. or its trust territories.

[SOURCE: NAV.COM]

This New Fund Was Created To Help Black Entrepreneurs

A small business lending program has been launched to help African American and minority businesses create jobs and build community wealth. With a focus on bringing capital to underserved groups, the National Urban League’s Urban Empowerment Fund, Morgan Stanley, National Development Council, and Cuyahoga County have come together to offer the Capital Access Fund of Greater Cleveland (CAF).

CAF is a three-year program that provides minority business owners access to capital, offering 50 loans totaling $8 million, as well as pre- and post-loan counseling, to ensure the success of those small business borrowers. With a goal of creating or maintaining a minimum of 300 jobs within those three years, CAF already has completed eight loans, totaling $1.4 million and helping to create or maintain 70 local jobs.

“The level of interest we already have confirms what we already knew—there is a gap in the access to capital for minority businesses, and we should not gloss over that,” said Marc H. M.

Read more: This New Fund Was Created To Help Black Entrepreneurs

Some black business owners strain to sell to black consumers

When Terina McKinney displays her leather bags and belts at events attended primarily by black women, they are often interested in her designs, and in her experience as an African-American business owner. But she seldom makes sales.

“They all ooh and ahh and ask a ton of questions, but don’t necessarily make purchases,” says McKinney, whose Jypsea Leathergoods products range from $20 to $325. Instead, her customers tend to be white or Asian women. While calls have been increasing for black consumers to support black-owned businesses with their buying power estimated at more than $1.2 trillion a year, social media campaigns with momentum like (hash)buyblack are relatively new. And McKinney’s frustration is shared by some other black business owners who say they can find it hard to sell to black consumers.

The factors can be logistical or practical, such as being located farther away or having higher prices than big chain stories, retail experts and civic leaders say. Scarcity can be a reason: It can be hard to find businesses owned by African-Americans. But other considerations might be emotional, like wanting a trendy design everyone is wearing, or the perception that national brands are better.

“There’s a myth that’s been placed on our communities for many generations: White people’s ice is colder. White businesses are superior to black businesses,” says Ron Busby, president of the U.S. Black Chambers, a national business organization for black-owned companies. “We have to change that mentality. We have to be better, conscientious consumers.”

Read More: Some black business owners strain to sell to black consumers