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Minority Government Grants

Updated on December 13, 2012
Yes, the federal government has grant money available, but it comes with a lot of restrictions and regulations. These grants are for very specific purposes.
Yes, the federal government has grant money available, but it comes with a lot of restrictions and regulations. These grants are for very specific purposes.

The Truth About Minority Government Grants

The truth of minority government grants is - there are no minority government grants as most people think of grants. That is money freely available to do whatever a person desires.

Consider the reason for grants - to make possible achieving a greater good. Regardless if it is the federal government, a foundation, or an individual, it is unlikely that any entity will provide someone money to do whatever they want with it with no reason. Consider the foundations that provide money to cottage industries in third-world countries, they don't just dole out dollars. We are talking amounts of $15-100 to help starving mothers make baskets or help farm, and even then foundations don’t see the need to give away money for nothing in return. They provide loans and not grants. Then why would there be free money in the United States for tens or hundreds of thousands?

What governments and foundations are willing to do to help the less fortunate in business is to provide loans. That the money provided can be reused to help someone else. After all, the money is being provided to help someone make money, why shouldn't they expect it back and help someone else? If the money was simply given away in minority government grants, then the cycle and the money stops. That is why the charities that help the previously mentioned starving mothers in third-world countries only give business loans. The money is to be paid back and then used to help someone else. Also, even the illiterate must develop and get approved a business plan for their operation, meaning there are also processes in place.

So, again I ask why would the US government give away money in minority government grants for someone to start flipping houses, to open a nightclub, or for no reason at all?

Are there government minority government grants ? Yes. The US government gives grants all the time, of all types not just minority. However, the process is slow, highly competitive, and full of regulations. Remember we are talking about the US government, bureaucracy is their mainstay. There is no Department of Free Money hidden away that no one knows about. There is no secret pocket of money that no one knows about, just waiting for someone to ask for it.

As tough as the wait and competition for a government grant can be, the most difficult barrier are the requirements. Again, this being the US government, there will be plenty of requirements when applying for minority government grants, then before receiving funds, during the time span of the grant, and after completion of the grant contract. And these requirements must be met with full documentation or accountants with guns will descend on you and yours.

Also, with all minority government grants I have been associated with, there is no check that gets sent in the mail that you can hold up and take a picture with. The US government may award a minority government grant worth hundreds of thousands or millions of dollars, but it doesn't send it one a big check. Minority government grants get parsed out over the span of the grant contract, and only through a process called a drawdown. That is the grantor will provide a way to request funds and then to have those funds transferred by wire to the grantee. This process is highly monitored and regulated.

The US government also provides grants to business, but not just for minorities. However, these grants are not simply money give-aways for whatever purpose or for start-ups. Typically business grants are to provide a service that the government agency wants done. It is better to consider these as contracts rather than grants. Perhaps, the reason the government does this, rather than as a business solicitation or Request for Proposal (RFP), is that these contracts are open. Meaning that not-for-profits, universities, municipal governments, and businesses can all compete for the contract. It is simply a matter of semantics, and not open season for free money via minority government grants. Just read any business grant and you will see that these are not “grants” easily available to the average person or business. Most often,an entity that is able to complete these grant requirements will already be doing what the contract/grant is requesting.

There is help available for minority businesses but in the form of loans. Again, so the money can be used again and again to help other. Also, the strictly or predominantly minority business loans are provided through local organizations and not the US government. Really want to start a business? Forget about magical minority government grants, write a business plan, and visit the SBA.


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    • bakerthelo profile image

      bakerthelo 8 years ago from Las Vegas

      I also provide news regarding grants on my hub, grants seem to be gettin more popular than loans, i just don't see why it took so long.

    • profile image

      Nisha shan 8 years ago

      This is financial aid awarded to applicants according to their race, national origin or religion. After narrowing the governing factors such as ethnicity, additional factors are also taken into consideration either on need base or merit base types.

    • profile image

      Business Money Today 8 years ago

      Very well said. I think most people get dis-information from TV or other commercials that do not tell the whole story as they only want your money.

      There are great grant opportunities with the Fed. Government - but, as you said - very competitive and require a lot from the business owner.

      I have had dealings with the following:

      Small Business Innovation Research (SBIR)

      Small Business technology Transfer (STTR)

      You can go to their individual site for solicitation information – or visit

      As well as –

      From the USDA - Community Programs are designed to develop essential community facilities for public use in rural areas. These facilities include schools, libraries, childcare, hospitals, medical clinics, assisted living facilities, fire and rescue stations, police stations, community centers, public buildings and transportation. Offers direct loans, guaranteed loans and grants. Also offers loans and grants to rural organizations developing and commercializing biofuels.

      Or - Value-Added Producer Grants - for planning activities and for working capital for marketing value-added agricultural products and for farm-based renewable energy.

      Rural Business Enterprise Grant Program - for rural projects that finance and facilitate development of small and emerging rural businesses to include employment related adult education programs.

      Rural Business Opportunity Grants - to promote sustainable economic development in rural communities with exceptional needs through provision of training and technical assistance for business development, entrepreneurs, and economic development officials and to assist with economic development planning.

      And, Energy for America Programs