Small business grants are gifts of money, in this case from the U.S. federal government. They are only given if certain conditions are met and do not have to be paid back. It should be noted however, that while many unaccredited sources spread rumors of federal grant money just waiting to be taken, this is simply not the truth. The reality is that the federal government is very judicious in its allotment of tax dollars. The federal government offers certain grants exclusively to African Americans as well as to members of other minority groups that are interested in small business. However, the likelihood of acquiring such small business grants for African Americans is quite slim.
To gain access to this money and many other services, minority entrepreneurs can visit Minority Business Development Agency (MBDA) Business Centers. These centers, which are located across the country in over 40 strategic locations, allocate funds provided by the federal government. In the past year, 27 of these centers received funding with the average center receiving approximately 300,000 dollars. These centers also provide many other services to minority communities by working with entrepreneurs to expand their business’s market access, and by providing consulting services to assist those new to interacting in a global economy. These programs reflect an initiative within the Obama administration to expand the exports of minority businesses, which make up slightly over 15 percent of all U.S. businesses.
Government Returning to grants however, it is very difficult to obtain grant money from the federal government on the basis of skin color. Most for-profit business grants require that an agreement be signed in which it is assured that the money will be spent towards a government supported initiative like environmentally friendly development. These types of grants are rarely provided on the basis of race. The chances of getting a grant for being an African American are realistically, quite slim. The surest way to maximize your chances would be to visit a MBDA Business Center and ask for the appropriate paperwork and speak with a consultant about qualifications. To find the Center closest to you, visit, http://www.mbda.gov/main/offices.
Small Business Grants For African Americans:
There are many small business grants for African Americans. It can be difficult to locate all of the available small business grants for African Americans but it is important to stay active in applying because there are so many available and people often get discouraged once they receive one or two rejections. Much like scholarship applications, since there are so many available options, not all of them are given out because of a lack of applications. As such, it is important that you apply to any and all grants for which your small business qualifies. This is not meant to say that the field of grant applications is not competitive. It is. As such, it is imperative that you search for grants which meet your needs and keep in mind that small business grants free are far and between. When you find the right grants for african americans to start a business you need to prepare the best case as to why your business is worth the free funding.
The first step in convincing businesses that your company is worth the investment is having a business plan. When you have a business plan you can present the professional document to receive the best financing. This document will show in which direction your company is running, which aspects of your company you are projecting such as marketing, customer attraction, growth, and retention. This plan will show grantors why your company qualifies for the grants.
One of the best sites for small business grants for African Americans is the Service Corps of Retired Executives (SCORE). This site offers minorities and African Americans a detailed how-to section which explains how to write business plans and find the best small business grants for African Americans. Another popular resource is the minority business development agency. This agency is part of the United States Chamber of Commerce and is dedicated to help minority-owned companies start and grow. The primary mission is to help companies find funding. There is a page on their website which lists each of the organizations and websites which offer grants. These can be filtered on a state wide basis or a national basis and can provide a great point from which to start for African Americans.
Business.gov is a fantastic resource for locating small business grants. The site was initiated by the federal government and focuses on providing information for small business to start their companies. It offers a search section for grant programs which can be catered to minorities. You can enter your company search criteria here and better locate grant programs which assist your particular company.
The National Minority Supplier Development Council is an organization dedicated to helping minority-owned companies locate the funding necessary to start their small businesses. There are often state chapters of this organization which can provide information on small business grants for African Americans women. They specialize in helping African Americans locate grant programs in their local area. When you visit their website you can find information on your state chapters.
It is important to remember that the federal government does not offer small business grants, but that the federal government does help provide small business owners with information about grant programs.