9 Top Grants for Growing Black-owned Businesses in 2025

Get to know your small business funding options in 2025 with these popular grants for Black-owned businesses.

Reference: https://www.shopify.com/blog/grants-for-black-business-owners

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.

Reference: https://www.shopify.com/blog/grants-for-black-business-owners

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9 grants for Black-owned businesses

• 1 Million Black Businesses Initiative (1MBB)

• Wish Local Empowerment Program

• HerRise MicroGrant

• Galaxy Microgrants

• Kinetic Business Black Business Support Fund

• National Black Business Pitch (NBBP)

• Sephora Beauty Grant

• BlackGirl Ventures Pitch Program

• Lenovo Evolve Grant

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. 

Reference: https://www.shopify.com/blog/grants-for-black-business-owners

1. 1 Million Black Businesses (1MBB)

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: 

Access to an eight-week small business development workshop

Connection to mentors from Shopify, Intuit, and Aprio

Assistance with securing capital for their businesses

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.

2. Wish Local Empowerment Program

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. 

3. HerRise MicroGrant

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.

4. Galaxy Microgrants

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. 

5. Kinetic Business Black Business Support Fund

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.

6. National Black Business Pitch

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.

7. Sephora Beauty Grant

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.

8. Black Girl Ventures Pitch Program

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.

9. Lenovo Evolve Grant

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. 

5 types of small business grants

Unrestricted grant

Grants for specific use

Grants as a workshop or incubator

Pitching competitions

Grants through services

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.

1. Unrestricted grants

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.

2. Grants for specific use

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.

3. Grants as a workshop or incubator

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. 

4. Pitching competitions

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.

5. Grants through services

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.

Other funding opportunities for Black businesses

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. 

Government funding

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. 

Shopify Capital 

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

Grants for Black-owned businesses FAQ

Are there grants for Black sole proprietors?

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.

What are several of the largest Black-owned businesses in the US?

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.

Are there VC funds that invest in early stage Black-founded startups?

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: 

Health Equity Ventures and Jumpstart Nova invest in Black-owned healthcare startups. 

Impact America Fund and Collab Capital invest in various Black-founded startups. 

Fearless Fund invests in startups founded by women of color. 

Gener8tor is an accelerator geared toward Black founders

The accelerator BK-XL is aimed at BIPOC (Black, Indigenous, and people of color) founders.

SS

by

Shopify Staff

Published on Dec 19, 2024

Reference: https://www.shopify.com/blog/grants-for-black-business-owners#11

I Escaped the Rat Race. Not Playing These Life Games Is the Reason Why.

The rat race is a reality many people secretly live.

Here’s how I define it:

• Impressing bosses

• Working for by-the-hour pay

• Overworking as a badge of honor

• Working towards the American Dream full of debt

• Chasing luxury purchases as if they’re the meaning of life

• Seeking a form of success you can’t even define (that has no meaning)

The rat race is where you follow what everybody else does as a way to find happiness and fulfillment. The more you don’t know the more you follow others, hoping to find your nirvana.

And you never find it.

It’s a hamster wheel to nowhere and it’s the default path in life taught by the education system and reinforced by the institutions that employ the masses.

I quit the rat race years ago for three reasons:

1. Got tired of being told what to do

2. Wanted to get out of my comfort zone

3. Wanted to find a deeper meaning than money

There’s one thing I didn’t expect…

I sometimes feel guilty for escaping the rat race

You’re not supposed to admit this.

None of the cool laptop lifestyle bloggers will ever say it — but it’s true.

"I like him but all he wants to do is talk about his job. It’s boring and I don’t understand that life anymore."

How do you explain to someone you’re friends with that you think their way of life is bullsh*t and it’s wasting their life, and forcing them not to reach their potential? It’s hard.

So I say nothing.

Not playing the below status games can help you escape the rat race faster.

Status Game 1 — Changing the world

This seems like a noble cause.

Like you should want it, shouldn’t you? Not necessarily. We don’t all need to be Nelson Mandela or to be successful.

Some days success to me is just getting to pick my kiddo up from daycare and hang out with her in nature. It may not impress others but it makes me happy. And happiness after all is what so many people are missing.

I’m somewhat of a hypocrite with this one. Five years ago I did want to change the world for billions of people. Now I prefer to help a few thousand people online and call it a day.

Changing the world in a big way takes a lot of effort and time. Maybe you don’t need to. Maybe changing a few lives is good enough. It is for me.

Status Game 2 — Leading lots of people

I’m sure you’ve seen entrepreneurs brag about having hundreds of employees. They want you to think it makes them special.

I don’t get it.

Hiring lots of people is a huge cost and burden. The same applies to General Managers. They’d often brag to me back in my banking days that they had hundreds of direct reports.

I saw it as a nightmare. All those performance reviews, 1–1s, salary reviews, KPIs — who could be bothered?

I’d rather manage a small team of 2–3 people and get to know each of them on a deeply personal level than have hundreds of faceless employees reporting to me so I can drop the number at a dinner party to look important.

Status Game 3 — Getting on rich lists like Forbes

I’ve met more than half of the names mentioned on the Forbes Rich List in my region of the world.

I’ll tell you one common trait: they’re douchebags with big egos who think money makes them special. I can’t think of one that’s nice to be around. They all just exist to make another transactions happen that increases their net worth and gets them on next year’s rich list.

Makes no sense. Rich lists are a PR stunt.

Instead of getting on a rich list, I’d rather make it on an anonymous of people who help those less fortunate than them without talking about it. Keanu Reeves did this with his foundation. Tim Ferriss did too.

Rich lists are for big egos. Meet a few of these rich listers and you’ll see what I mean.

Status Game 4 — Smashing the numbers

Those trapped by the invisible rat race love to talk about:

• Profit

• Revenue

• Valuation

• Fastest user growth

• How much money their company raised

I don’t give a crap about any of that. I haven’t looked at the numbers of my online business properly since the start. And I sure as hell don’t give a crap about telling people these numbers.

The numbers of your life are a distraction.

A better question is…why? What’s the meaning of your life? What will your life have been about after you’re dead? What do your kids think of you? Who have you helped that can never repay you?

That’s the stuff that matters.

Status Game 5 — Buying luxury items to show you’re better than others

Buying luxury stuff secretly whispers “I’m insecure” to every person you meet. No one cares that you have some brand name car.

If anything — they freaking hate you for buying a BMW because they wish they had one. A luxury purchase feels good for a week. Then it feels same-same for the rest of your life while you bust your ass to pay it off.

Don’t fall for the luxury game.

Status Game 6 — Being who “they” want you to be

This is the least talked about status game.

And I was an absolute sucker for this one. Instead of being myself in my career, I was who the bosses wanted me to be.

I did as I was told. I worked late. I followed orders even when it meant bankrupting a customer who didn’t deserve to be. I felt like I lived two lives: one where I did what they wanted me to do, and another where I felt like doing the opposite.

Being someone you know you’re not is exhausting. It takes a huge amount of time and energy.

It’s just easier to be yourself.

When you do, life gets better. You feel like what you say and do is in alignment with the rest of your life. You stop being a puppet on strings. You stop dressing in a clown suit with a pink tie. And you quit saying what people want to hear.

Towards the end of my rat race career in banking, I started speaking my mind (respectfully). What I found is the big bosses actually appreciated it because everyone else was feeding them bullsh*t.

It worked against me because instead of leaving the rat race, I started to get promoted to better jobs haha.

Bringing it all together

The rat race is a hamster wheel to nowhere.

It takes advantage of human’s primal instincts to be ahead of the pack. So many of us live this life and we’re not aware of it. Once you see it for what it is, only then do you have the chance to escape.

Consider living a life that transcends status games and trades them for more meaning.

by Tim Denning

| Aug 31, 2023 | Financial Freedom, Money

We Are Too Good for DEI

Diversity, equity and inclusion initiatives that portray Black Americans as perpetual victims aren’t doing us any favors.

This article appeared in

 Discourse Magazine on February 21, 2024.

My impetus for dedicating the bulk of my career to combatting diversity, equity and inclusion (DEI) initiatives began on a listserv for Rhetoric and Composition, the field in which I teach as a professor. Upon hearing a well-received speech claiming that the teaching of Standard English to Black students was a form of racism, I wrote an email questioning the efficacy of that argument. My inquiry induced a level of opprobrium I did not expect. I was called a white supremacist, and blatant lies were spread about me on social media.

Besides these robust attempts to degrade me, I noticed a consistent infantilization of anyone Black who was “brave” enough to speak up against me. Mind you, this extremely woke listserv was a safe place to voice disdain for anyone who refused to embrace a victim narrative—no bravery required—but in order to abide by that narrative, anyone Black had to be cast as a downtrodden victim punching up and speaking truth to power. Anyone Black except me, of course. For wanting Black students to have the utmost agency and to flourish in today’s society, I, a Black man, was shunned by whites and Blacks alike.

Diversity, equity and inclusion initiatives that portray Black Americans as perpetual victims aren’t doing us any favors.

The U.S. is currently celebrating Black History Month, and I’ve been asked to share my thoughts about how this month of celebration aligns with DEI initiatives. The answer to that question depends on the type of DEI. Some DEI initiatives align with the classical liberal values of the civil rights movement, and indeed of America’s founding, such as freedom and equal opportunity for all, regardless of skin color. Other versions of DEI, however, are undergirded by critical social justice (CSJ), an ideology that pits whites and Blacks against each other; whites are perpetual oppressors, and Blacks are perpetually oppressed. This variation of DEI, which I refer to as CSJ-DEI, is the ideology that was on display during the aforementioned listserv debacle. It insists on the perpetual victim status of Black Americans and, in so doing, is ideologically opposed to the celebration of Black Americans because it focuses on their trials, not their triumphs. Black History Month is supposed to be about Black empowerment, but CSJ-DEI depends on Black disempowerment.

One can get the gist of CSJ by understanding its primary tenet:

“The question is not ‘did racism take place?’ but rather ‘how did racism manifest in that situation?’” This philosophy assumes that racism is always already a part of any interaction between whites and nonwhites; one just has to find it. Assessing the facts of a particular situation is considered unnecessary, even naive. One need not think when it comes to racial justice; the narrative—the script—does the thinking. Does this lack of agency, this deference of volition to a pre-scripted narrative, sound empowering?

CSJ-DEI is about leaning into to the “downtrodden Black person” narrative, but that narrative does not align with the reality of today’s America. Forget about the growing presence of current or recent Black immigrants and the enhanced socioeconomic status of many Black Americans today. According to the altered reality of CSJ-DEI, Black people must still be seen as irredeemably oppressed. Scholars Julian Adorney and Jake Mackey call this altered reality a “virtuous lie,” defined as “a false or dubious claim that is asserted without qualification because it is thought to advance an ethical agenda.” Exaggerated police statistics and the insistence that Black Americans are still caught in a form of slavery are just the tips of this “virtuous” iceberg.

Virtuous lies are anything but virtuous in these situations, but they show up in traditionally virtuous places, such as scholarly journals. In the scientific journal Cell, prominent scientists insist that the Black individuals among their ranks “continue to suffer institutional slavery.” In addition, a philosophy professor argues that the “years 1492 and 1619 and 1857 and 1955 are still now” and insists she means this in “a meaningful, non-metaphorical sense” (my emphasis). The absurdity of these statements is matched, if not eclipsed, only by the fact that these authors were confident their arguments would be taken seriously. Congresswoman Alexandria Ocasio-Cortez was emboldened enough to say that a false narrative is acceptable if it feels “morally right”; to insist on facts is to be misguided.

Black History Month is too good for CSJ-DEI. It is about the celebration of figures in Black history who beat seemingly insurmountable odds. It is about figures like educator Mary McLeod Bethune, lawyer Samuel J. Lee, congressman Josiah T. Walls and many others of whom most are unaware. I firmly believe that these figures would scoff at CSJ-inspired ideas such as equitable math, the demonization of debate and the violence of teaching Standard English to Black students.

The misalignment of Black History Month with CSJ-DEI is exemplified by one of the most consistently celebrated figures of Black history: Frederick Douglass. As a slave, Douglass taught himself to read despite the fact that it was illegal. He had to be astute enough to be autodidactic and clever enough to do it without getting caught. When he escaped into the free states, he rose to become the most sought-after orator of the 19th century. Douglass’ life is an implicit counterargument to the CSJ-DEI narrative: If Douglass could accomplish this as a slave two centuries ago, what excuses do Black people have for embracing victimhood today, in a truly free society of which Douglass could only dream?

Ultimately, CSJ-DEI not only counters the spirit of Black History Month, but it insults the figures celebrated during that month. To pretend things are just as bad now as they were throughout American history is to disrespect the accomplishments of Black Americans. Black Americans today are here and thriving precisely because of their power and ability to rise above adverse circumstances. To insist we remain disempowered at all times is risible at best.

About the Author

Erec Smith

Research Fellow, Cato Institute