Nearly 275 billion dollars have been earmarked by the administration as federal grants and a large share of that money is for financing business for minorities. The government has recognized the need to support entrepreneurs to help develop the community, especially the minority communities. Most federal government grants are reserved for nonprofit organizations and state government projects that work towards community development.
There are many people out there who would like to start a venture that will benefit the community as a whole but do not have the capital to start. Taking a loan is also not an option because financial institutions require guarantees and other supporting documents. Financial aid received in the form of a grant is a better alternative as you do not have to return the amount. Grants are mostly given out to fulfill a specific purpose or to satisfy a need.
In these times of an economic recession, it is difficult to find gainful employment, hence the government has come up with a 787 billion dollar stimulus plan to cushion the economy. A large portion of this money will go towards entrepreneurial projects that will create jobs and benefit the community. A good example of such a venture is child day care center, as it will provide employment in the community and will also allow women to look for employment without worrying about child care.
The government has set aside funds as grants for minorities to contribute to their economic well-being. The administration also has The Catalog of Federal Domestic Assistant (CFDA) website which gives details about minority grants and their application procedures. You can also track the status of your grant application on the government grants website with your Funding Opportunity Number (FON) or Catalog of Federal Domestic Assistance (CFDA) number.
The US Small Business Administration (SBA) realizing that minorities don't have access to commercial finance, have made provisions for small business grants and loans to assist these people. The SBA also passes government contracts on to Economically Disadvantaged Women Owned Small Businesses (EDWOSBs) and minorities. SBA also runs a Small Business Investment Company (SBIC) program which provides start-up funds to businesses in return for shares in the company.
The US Department of Commerce has a Minority Business Development Agency (MBDA) which is committed to assist entrepreneurs from the minority communities. They provide assistance and tips on how to start a small business. They support small minority business enterprises (MBE) in drawing up marketing plans, provide technical assistance and financial planning. The MBDA has over 40 business development centers mostly located in areas which have a concentration of minority population and businesses.
There are many government and private grants for small business start-up for women and minorities. You just need to look in the right places, visit your local chamber of commerce, check the government grants website, and organizations like Rotary. The Office of Women's Business Ownership (OWBO) is also a great place to look for assistance.
According to a survey Hispanics are the largest minority group they consist of 15 percent of the population, followed by African-Americans 13 percent and Native Americans 1 percent. The Obama government also enacted the American Recovery and Reinvestment Act of 2009 under which funds are set aside as grants for the next 10 years.
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