Reports show that African American businesses accounted for only 5 percent of American businesses in the last decade. Considering the fact that African Americans make up the largest minority group in the country at 13.2% it has become apparent to the federal Small Business Administration (SBA) that it is important to increase that percentage so that more businesses would represent this ethnic group. As an incentive for more African Americans to take the risk and join the business community both the federal government and private institutions have chosen to offer black business grants to promising entrepreneurs.
How To Prepare
If you're interested in applying for funding for a new business enterprise there are several things you must do to prepare before you submit your application. One of the first things you'll need to do is create a business plan that will present your ideas in a language that will inspire confidence in your idea. If you're not sure how to do this, you might want to check with several non-profit agencies that offer free guidance in what needs to be included in your plan and how to put it all together.
Getting A Loan
The Federal Government does not normally offer grants to new startup businesses but if you check with the SBA they may be able to give you a loan to cover your start up costs. Small business loans are relatively easy to get in comparison to getting financing from a bank or another financial institution. If you're in a position to take the risk of paying on a debt, it can help you to get financing for your business sooner.
Black Business Grants
There are many private organizations that are more than willing to fund a grant for the launch of a new business, especially if you have a great business plan to present. Finding these grant opportunities, however, may take a bit of research. Start with your local SBA office, while they are not able to offer you grants themselves, they will know which organizations are in a position to fund the kind of opportunities you're looking for. There is even a special category for African American women who wish to launch a business.
There is no limit to how much grant money you may qualify for to start a new business venture. Many organizations have set aside funds specifically to support the needs of the African American community and give them an opportunity to get more involved in the business world.
It should be noted, however, that these grants have very strict requirements and tight deadlines so the more you know about their requirements, the better prepared you'll be when you submit your application. Whenever you're searching for black business grants, read through all the paperwork on the grant to make sure that you have everything in order before you begin the application process. Once you do, you'll be well on your way to increasing the number of African American business owners in your community and you'll finally have the freedom to use your creativity in expanded your own self-worth.