How to Apply for a Minority Business Grant

Minority business grants are a type of funding for minority-owned businesses, usually small ones. Unlike loans, grants do not have to be paid back, although they are generally considered by the Internal Revenue Service (IRS) to be taxable business income. In the United States, minority business grants are available from public and private sources. While the federal government does not provide grant funding for the purpose of starting or growing a business, many private grantors do. Key Takeaways Minority business grants are funded by private companies, educational institutions, nonprofit organizations, and state, local, and federal governments and agencies for small business entrepreneurs who identify as a member of a minority. Usually, there’s a lot of competition for these grants. Unlike loans, business grants generally do not have to be paid back, but they are considered taxable business income by the IRS. Minority businesses must make sure that they are eligible for a grant, be ready to fill out forms, and supply the necessary documentation to apply for a grant. To boost your chance of success, look for grant-writing assistance or examples of previous successful applications from the grantor, and give yourself plenty of time to complete the application process. Investopedia...