Start selling with Shopify today
Start your free trial with Shopify today—then use these resources to guide you through every step of the process.
Get to know your small business funding options in 2025 with these popular grants for Black-owned businesses.
Start your online business today.
For free.
According to the Alliance for Entrepreneurial Equity, only 2.5% of American businesses are Black-owned. Its State of Black Business report also found that Black-owned businesses earn less revenue and hold more debt than businesses owned by other demographics. Systemic issues like unequal access to financial support perpetuate these inequities, as they make it difficult for Black-owned businesses to both get started and expand.
Grants for Black-owned businesses can help level that playing field. A number of nonprofit organizations and for-profit companies offer small business grants for Black-owned businesses operating in the United States. Many grant programs even include business development resources to help set up Black-owned businesses for success.
As you seek out grants, keep in mind that they are not always well publicized, may have short application windows, and might not always be available year after year. You can learn about more opportunities by networking with fellow small business owners and tapping resources from organizations like the NAACP, Hello Alice, America’s Small Business Development Center Network, and National Minority Supplier Development Council.
Read on to learn more about accessing a variety of funding opportunities and grants for Black-owned businesses.
Applying for small business grants is a rigorous process. Grant applications involve steps like gathering documentation (e.g., tax returns, bank statements, revenue records), polishing your business plan, and making sure you’ve read and followed each grant program’s eligibility requirements. The good news is, once you’ve assembled one grant application, it becomes easier to revise as needed whenever you apply for other grant opportunities.
Let’s take a look at several upcoming grant funding opportunities for Black-owned businesses that could benefit your own business in 2025.
Since its launch in 2020, the 1 Million Black Businesses initiative (1MBB) has helped more than 459,000 Black-owned small businesses to launch and grow.
Participants in this Black businesses grant program get:
Any Black business owner can enroll and immediately gain access to 1MBB’s vast library of business development courses. The initiative is run by nonprofit Operation HOPE with partner Shopify, which made a 10-year pledge valued at around $130 million. The partnership aims to help start and grow one million Black-owned businesses by 2030.
Ecommerce platform Wish Local created a $2 million fund to issue $500 to $2,000 Wish Local Empowerment grants to Black-owned brick-and-mortar small businesses. To qualify, you’ll need to be a Black business owner with fewer than 20 employees, a brick-and-mortar storefront, and an average annual revenue under $1 million.
You can use the funds however you’d like, but you’ll need to become a Wish Local vendor in exchange for receiving the grant. Becoming a Wish Local vendor means your store will become a pick-up location for orders placed via Wish.
Like all good partnerships, this agreement is likely to benefit both businesses: Wish Local can attract more customers in your area with a new pickup location, and using your shop for order pickup will bring more foot traffic to your store, which could boost sales as well as brand recognition.
Every month, the women-led professional development organization HerSuite distributes a $1,000 HerRise MicroGrant to a company owned by a woman of color. To be eligible, you must submit your application by the end of the day on the last day of the month.
If you’re a Black woman with a small business that earns less than $1 million in annual revenue each year, you may qualify for this microgrant. The application will request basic business details like your annual revenue and industry, then ask questions about what problems your business solves and how you plan to use the grant money.
Galaxy of Stars and the nonprofit Hidden Star, both supporters of women and minority small business owners, are distributing a Galaxy grant giveaway of $2,750 in 2025.
In order to apply for the microgrant, Galaxy of Stars requires you to join its platform as a member. The application process is brief: Simply fill out basic information like contact details, ethnicity, and whether you are a current or future business owner.
Through its Black Business Support Fund, internet provider Kinetic Business offers grants of up to $2,500 to Black-owned small businesses.
To qualify for a grant, your business must operate in their service area, which covers a wide swath of the Midwest and Northeast. You’ll need to employ fewer than 25 staff members and be a for-profit company. There are also a few restrictions on eligible industries—for example, liquor stores and gun shops can’t apply for this grant.
The National Black Business Pitch (NBBP) competition aims to connect winners with corporations who want to expand their supply chain or product offerings. Each year, three NBBP winners earn $10,000 in cash.
Black business owners must complete an application and film a three-minute video about their business. Both parts of their submission are reviewed by judges from corporate supplier backgrounds. Applicants that pass this first round then present their pitch in front of a virtual audience for the chance to be chosen as one of the three winners.
Applications for the 2025 competition open in February and close in June.
Black-owned beauty businesses are eligible to apply for a whopping $100,000 grant sponsored by Sephora and the Fifteen Percent Pledge.
To qualify for the Sephora Beauty Grant, your beauty business must have been operating for more than a year, earning $100,000 in annual revenue. The application window is typically four weeks long and opens annually in October.
Black Girl Ventures aims to help women founders from underrepresented backgrounds grow their businesses.
The organization’s annual pitch program is a unique competition that melds traditional pitching with crowdfunding: Applicants develop a three-minute pitch, receive coaching to fine-tune their pitch, then present their pitch at a livestreamed event. Competition results are decided by audience votes.
You must be a Black woman with a business currently valued at less than $1 million to be eligible for this competition. Winners receive cash prizes as well as networking opportunities. Application deadlines vary by city.
The Lenovo Evolve Grant rewards minority-owned businesses, disabled-owned businesses, and women-owned businesses. Grant winners receive $25,000, access to mentorship programs, and technical assistance to improve and grow their companies. For the 2025 edition of the prize, Lenovo will also help small businesses owners incorporate AI into their companies.
This grant has distributed $3.6 million over the past four years. Applications have yet to open, but you can sign up to receive a notification when they do.
Grants can take many forms. Beyond cash prizes, some grants offer business development assistance as well.
Get to know some of the most common types of small business grants below.
Businesses that earn unrestricted grants can use their prize money any way they wish—no strings attached. For example, a company might opt to use their prize money to hire new employees, while another might use it to develop a new product.
Businesses must invest specific use grants into an aspect of their business determined by the grant-giving body. For example, a company might win $15,000 with the expectation that they’ll use that money to reduce their carbon footprint or complete a social impact project within an agreed-upon timeframe.
Many foundations and agencies distribute grants alongside opportunities for networking or mentorship. For example, you might win a place in a small business cohort or earn a spot in a series of business development programs.
Pitching competitions are a great way to get your business off the ground. Prize money is awarded to entrepreneurs who present savvy business pitches to public or private audiences. These grants might be in the form of cash, capital investment, or both.
Grants can take the form of free services received, such as $5,000 worth of marketing assistance, technology expansion, or legal services. For example, a for-profit technology company might provide their services for free to grant winners.
In addition to applying for small business grants, Black business owners can find funding opportunities in the form of loans from a variety of sources.
💸Remember: Loans are not the same as grants. With loans, you agree to a repayment schedule that typically includes interest costs. Meanwhile, grants are considered a gift you’re not required to repay.
Here are a couple of those small business loan options to consider.
Black business owners can utilize resources from federal government agencies like the Minority Business Development Agency and the Small Business Administration. For example, the Minority Business Development Agency can provide you with financial assistance and coaching to start and grow your business. The Small Business Administration can offer those services as well. Their Small Business Innovation Research and Small Business Technology Transfer arm offers a seed fund that can help you turn innovative scientific ideas into commercial enterprises.
Many state agencies also provide resources to minority business owners, so it helps to check out your state’s website for financing options in your area. Just keep in mind that government assistance will be in the form of loans, not grants. State and federal grants are available only to organizations like nonprofits, not for-profit companies.
Looking to start or scale your ecommerce business? Shopify can help.
Since 2016, Shopify Capital has distributed more than $5 billion in business financing that’s supported the growth of thousands of ecommerce businesses on the platform. Whether you need to invest more in marketing, operations, inventory, or something else, Shopify Capital makes both the funding and repayment processes more accessible.
Learn more: 8 Ways Shopify Capital Can Help Grow Your Small Business
The National Association for the Self-Employed (NASE) offers $4,000 grants on a rolling basis for self-employed individuals of all races. Membership in NASE is required to apply.
Successful Black-owned businesses span multiple sectors. Some of the largest include the IT services company World Wide Technology, the food services company Thompson Hospitality, and the multimedia company Urban One.
There is a growing number of venture capital (VC) firms that specifically invest in Black founders. Others invest in the broader group of minority-owned businesses.
Here are some examples of VC firms who invest in Black-owned businesses:
The newsletter for entrepreneurs
Join millions of self-starters in getting business resources, tips, and inspiring stories in your inbox.
Unsubscribe anytime. By entering your email, you agree to receive marketing emails from Shopify. By proceeding, you agree to the Terms and Conditions and Privacy Policy.
popular posts
popular posts
2023-11-08
2023-09-01
2023-12-05
2023-11-09
2023-09-20
2023-11-23
2023-12-02
2023-11-06
Join millions of self-starters in getting business resources, tips, and inspiring stories in your inbox.
Unsubscribe anytime. By entering your email, you agree to receive marketing emails from Shopify. By proceeding, you agree to the Terms and Conditions and Privacy Policy.
Learn on the go. Try Shopify for free, and explore all the tools you need to start, run, and grow your business.
Try Shopify for free, no credit card required.
