5 Business Grants Black Entrepreneurs Are Missing (and Why)

Black entrepreneurs continue to get a small portion of the capital available through federal and private grant programs. According to experts, awareness, accessibility, and structural obstacles that prevent many opportunities from being taken advantage of are more often the issue than a lack of funds.

These are five grants that Black business entrepreneurs commonly overlook, along with the reasons why:

1. The Small Business Innovation Research (SBIR) Program

Small companies creating cutting-edge technology with promise for commercialization can get funding through the SBIR program. It has the authority to grant awards totaling tens of thousands or possibly millions of dollars.

However, this grant is missed because a lot of Black business owners don’t know about it or think it’s exclusive to IT companies.

The application process is also very technical. It requires significant research and a strong business plan and the paperwork by itself may seem like a hurdle in the absence of assistance.

2. National Minority Supplier Development Council (NMSDC) Business Development Grants

The NMSDC provides grants exclusively for growth and development projects and links minority-owned companies with corporate partners.

Why this grant is majorly overlooked is because of the certification and membership requirements. Some Black business owners might not know how to obtain certification or think the procedure is difficult.

Furthermore, many qualified businesses are unaware of the NMSDC due to its limited outreach.

3. Amber Grant for Women Entrepreneurs

The Amber Grant awards $10,000 to a woman-owned company each month, and one exceptional company receives a $25,000 grant each year.

Hoever, this grant is overlooked due to misconceptions regarding eligibility. Many Black women entrepreneurs either don’t apply or believe they won’t be eligible.

Although outreach frequently fails to reach Black-owned businesses, the grant does not need detailed reporting or a past company track record, just a compelling story and goal.

4. Amazon Black Business Accelerator (BBA)

Amazon’s Black Business Accelerator provides a combination of direct grants and grant-like resources to Black-owned businesses that sell on its platform.

These resources include financial credits for advertising and marketing, personalized mentorship, business coaching, and promotional support designed to increase visibility and sales. It was started with a $150 million pledge to encourage Black entrepreneurs.

However, because it’s related to selling on Amazon’s platform, many Black founders with offline or non‑product‑based businesses never consider it. Others are unaware that selling online can provide marketing boosts and business funding in addition to additional income.

5. Local and State Minority Business Development Grants

Many states and cities have grant programs designed to support minority-owned businesses, ranging from startup funds to expansion grants.

However, these initiatives frequently go unnoticed. Entrepreneurs may not have time to conduct research or keep track of deadlines, especially if they are already managing several responsibilities. Many eligible businesses never apply due to a lack of mentorship and guidance.

Why the Gap Persists

Although awareness plays a significant role, structural problems worsens the issue. Barriers that grant programs alone are unable to completely overcome include historical economic disparities, a lack of generational wealth, and restricted access to mentorship networks.

Additionally, early-stage Black entrepreneurs find it more difficult to compete because grant applications sometimes prefer companies that already have a strong infrastructure or previous funding.

Bridging the Gap

Black business networks, incubators, and community organizations are filling the knowledge gap.

Workshops on grant writing and financing tactics are frequently offered by organizations like SCORE, local chambers of commerce, and Black-led entrepreneurial networks.

Proactive research and connecting with networks that are aware of the particular difficulties Black business confront are crucial. Understanding the grant ecosystem, being aware of eligibility requirements, and looking for mentorship can transform missed possibilities into actual growth capital.