Resources for Funding and Leveling up Your Business
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Now more than ever is the time to start the business you’ve been considering. With the ongoing COVID-19 pandemic and in the midst of The Great Resignation, nine-to-fivers are reassessing their relationship to work and have started small businesses. Black-owned businesses are growing by the numbers each day, with 134,567 Black or African American businesses existing in 2020 (Annual Business Survey). As a black business owner or an aspiring one, you should take advantage of the resources that support black, minority, or disadvantaged business owners, as they can provide funding, advising, and much more.
Take a look at these resources that support black-owned businesses.
Black Founders
Founded in 2011, Black Founders was created with the goal to increase the number of black entrepreneurs in the tech industry. “Our goal is to create an ecosystem that stimulates tech entrepreneurship and fosters economic growth in the community.” Black Founders hosts HBCU Hackathons, conferences, and several other events that provide advising, mentoring, and network opportunities for black tech entrepreneurs.
Disadvantaged Business Enterprise Program
The Department of Transportation (DOT) has the Disadvantaged Business Enterprise (DBE) program. DBE was created to address the discrimination faced by socially and economically disadvantaged business owners attempting to receive federal funds for transportation contracts. With this program, disadvantaged business owners get a fair opportunity to compete against other companies to receive federal funds from transportation contracts.
Minority Business Development Agency
“Economic prosperity for all American business enterprises” is the vision statement for the U.S. Department of Commerce’s Minority Business Development Agency (MBDA). According to their website, MBDA is the only federal agency focused solely on the growth and competitiveness of minority business enterprises (MBEs) across America. MBDA serves MBEs owned by African Americans, Asian Americans, Hasidic Jews, Hispanic Americans, Native Americans, and Pacific Islanders.
Small Business Administration 8(a) Business Development
The Small Business Administration’s 8(a) Business Development Program is a nine-year program created to help businesses owned and operated by socially and economically disadvantaged groups. Participating business owners receive training, technical assistance, and much more to help them compete in America’s economy. The program’s benefits include eligibility to receive federal contracting preferences (set-aside and sole-source contracts), mentoring opportunities from the SBA Mentor-Protege program, the ability to pursue joint ventures with established businesses, and many more.
Listed below are the eligibility criteria to join the 8(a) program:
Must be a small business
Must have a business that is at least 51% owned and operated by U.S. citizens who are socially and economically disadvantaged
Not a previous participant in the 8(a) program
Must demonstrate good personal and professional character
Need a personal net worth of $750,000 or less, with an adjusted income of $350,000 or less, and assets that total $6 million or less
Exhibit potential to have a business that has run successfully for two years
An 8(a) program certification lasts for a maximum of nine years for participating businesses. The program's first four years are the development stages, and the later five years are considered transitional stages.
Grants.gov
If you’re looking for grant funding opportunities, Grants.gov is a great starting place for your search. Business owners can search through thousands of available grants that support small, minority-owned businesses across America. In addition, if you’ve never applied for a grant before, Grants.gov provides several guides to help you through the process.
Grant.gov offers an app available on the App Store and Google Play for on-the-go grant searches.
Minority Business Enterprise Certification
The Minority Business Enterprise Certification is offered by the National Minority Supplier Development Council (NMSDC). NMSDC certifies minority-owned businesses “on behalf of U.S. corporations or MBE certification through city, county or state programs.”
The minimum requirements to receive an MBE certification are the following:
Must be a for-profit business operating in the United States
Business must be 51% owned and operated by a member (or members) of the MBE’s presumed groups, including Black Americans, Hispanics, Native Americans, Asian Pacific, and Subcontinent Asians.
Member (or members) identifying with one of the presumed groups must be the top executive director of the business that manages its daily operations