Colin Powell, the first African American appointed as the U.S. Secretary of State, put it best when he said, "Have a vision. Be demanding.

August 1st marks the beginning of National Black Business Month, marking the importance of continuous support of Black-owned businesses. There are an estimated 161,031 Black or African-American-owned businesses with $183.3 billion in annual receipts, 1.4 million employees, and about $53.6 billion in annual payroll. About 45,015 (28%) of these businesses were in the Health Care and Social Assistance sector.

Black business owners face significant barriers to accessing capital, affecting their ability to start and grow businesses. Half of Black-owned businesses apply for loans, with 68% of them applying to meet operating expenses and 64% to expand operations. However, they are denied financing more than anyone else, with 41% of Black-owned businesses completely denied loans, lines of credit, and cash advances. Only 32% of Black-owned businesses are fully approved, while White-owned businesses received 56% approval and only a 18% denial rating. As a result, many Black businesses turn to alternative forms of financing, such as fintech companies and online lenders.

With equity, equality, and progress in mind, here are grant opportunities for either black-owned and led startup businesses or nonprofits.

The Black Founder Startup Grant program from the SoGal Foundation and other sponsors provides grants between $5,000 and $10,000 to Black and multiracial women and nonbinary entrepreneurs. The program accepts applications on a rolling basis and is open to entrepreneurs with a legally registered business who plan to seek investor financing to scale.

• Self-identify as a Black woman or Black nonbinary entrepreneur (inclusive of multiracial Black women and multiracial Black nonbinary folks)
• Have a legally registered business
• Plan to seek investor financing in order to scale, now or in the future
• Have a scalable, high-impact solution or idea with the ambition to be the next billion-dollar business

The National Park Service’s (NPS) African American Civil Rights Grant Program (AACR) seeks to record, explain and preserve the history of African Americans’ fight for equal rights since the transatlantic slave trade. The program offers up to $75,000 in funding to support history grants and up to $750,000 for preservation grants. NPS will utilize its  report, Civil Rights in America, A Framework for Identifying Significant Sites, as a guide in determining the appropriateness of proposed projects and properties. Allowable project activities include, but are not limited to, survey and planning, research and documentation, interpretation and education, and collections conservation. Applications will be accepted until September 5th, 2024 and does not require a non-federal match.

• Private higher education institutions.
• County, public, state-controlled institutions.
• City/township governments.
• Special district governments.
• Native American tribal organizations.
• Nonprofits with IRS 501(c)(3) status.
• State governments.
• Independent school districts.

Note: Sites or collections owned or leased by the NPS, or in which the NPS holds a property interest, are not eligible grant funding.

Alternative Resources for Black-Owned Businesses

Looking for other ways to strategize growth? Here are some resources to help your organization get started.

• Incorporated in 1969, The Minority Business Development Agency (MBDA) is dedicated to helping minority-owned businesses navigate sustainable solutions for development. With locations nationwide, MBDA provides a plethora of resources and guidance surrounding funding and business strategy.
• The U.S. Black Chambers (USBC) serves to support the various African American Chambers of Commerce across the country. Through partnerships and an extensive network of entrepreneurs, USBC offers a multitude of programs that involve informative webinars, certifications, and training to help Black-owned businesses break down the barriers to success.
• In partnership with the National Association for the Advancement of Colored People (NAACP), the Black-Owned Business Resource Center within the virtual Hello Alice community offers guidance in navigating the challenges of entrepreneurship. From funding resources to building connections, this resource center helps businesses in all stages of the development process reach their goals.

Interested in learning more? Please contact USFCR’s Grant Writing Team at (877) 252-2700 and complete the grant assessment below for further assistance. Let USFCR help your organization make a difference!

Don't miss out on the funding that could elevate your project to the next level!

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SOURCES

 1. Census.gov. “Census Bureau Releases New Data on Minority-Owned, Veteran-Owned and Women-Owned Businesses,” November 13, 2023. https://www.census.gov/newsroom/press-releases/2023/annual-business-survey-employer-business-characteristics.html#:~:text=Asian%2Downed%20businesses%20had%20the,$12.9%20billion%20in%20annual%20payroll.

2. Rachel Evans, Imani Augustus, and Gabe Horwitz. “The State of Black Business,” Third Way. May 1, 2024.  https://www.thirdway.org/report/the-state-of-black-business#:~:text=While%20the%20pandemic%20seemingly%20disrupted,use%20contract%20workers%20in%202023.