Best grants for Black-owned businesses in 2026: programs, amounts, and how to apply
Black entrepreneurs face a well-documented funding gap: Black-owned businesses receive a very small share of venture capital, are approved for full bank financing less often, and typically start with less personal capital. Grants can help, but the landscape changed sharply between 2024 and 2026: several well-known race-specific grants have closed, and SBA's 8(a) program no longer presumes that Black applicants are socially disadvantaged. This guide, checked against each program's own website on 24 September 2026, shows what is open now, what has ended, and how to use federal programs under the new rules. For broader options, see our complete small business grants guide.
- Who this is for: Black-owned U.S. businesses looking for non-repayable funding and federal contracting access.
- Open now: Galaxy Grants for women and minority owners ($2,500, closes October 31, 2026), Verizon Small Business Digital Ready ($10,000, 10 a month), NASE Growth Grants and SBIR/STTR.
- Ended or paused: Fearless Fund Strivers Grant (closed 2024), PayPal's 2020 grant, Comcast RISE (no 2026 round), NAACP Powershift (not currently open).
- SBA 8(a) in 2026: since September 10, 2026, individually owned applicants must show social disadvantage individually; there is no longer a presumption based on race.
💰 Largest open grant: Verizon Small Business Digital Ready ($10,000, 10 grants a month through December 2026)
⚡ Federal contracting: SBA 8(a) Business Development (9-year program; new individual showing of disadvantage)
🎯 Free help: National Urban League Entrepreneurship Centers and local CDFIs
The funding landscape for Black-owned businesses
The numbers paint a stark picture. The Federal Reserve's Small Business Credit Survey has repeatedly found Black-owned firms less likely than white-owned firms to receive all the financing they seek, and Brookings research estimates that Black-owned businesses start with roughly one-third of the capital of white-owned businesses. These disparities compound over time, making grants and non-traditional funding sources essential for closing the wealth gap.
After 2020, many companies launched grant programs aimed at Black entrepreneurs, but most were one-time or have since ended or moved to race-neutral criteria after lawsuits challenging race-restricted grants. The federal picture changed too: SBA ended the 8(a) race-based presumption in 2026 and closed its Community Advantage lending pilot in 2023. And organizations like the National Urban League, NAACP, and National Black MBA Association offer both funding and networks. Beyond the programs covered below, every active federal grant opportunity that accepts minority-owned applicants is posted at Grants.gov with eligibility filters that surface programs by entity type and Assistance Listing number.
Comparison: what is open, what changed, what ended
| Program | Amount | Who can apply | Status (Sept 24, 2026) | Type |
|---|---|---|---|---|
| Galaxy Grants (Hidden Star) | $2,500 | Women and minority business owners, U.S., any stage; free | Open, closes October 31, 2026 | Private |
| Verizon Small Business Digital Ready | $10,000 (10 a month) | U.S. for-profit small businesses; 2 courses first; free | Open, monthly through December 2026 | Corporate |
| NASE Growth Grants | Up to $4,000 | NASE members ($120/yr) | Open, quarterly | Private |
| SBIR/STTR Phase I | Up to $323,090 (most agencies) | U.S. small businesses doing R&D | Open (reauthorized through 2031) | Federal |
| SBA 8(a) Business Development | Federal contract set-asides, not cash | Socially and economically disadvantaged owners, shown individually | Open under new rules from September 10, 2026 | Federal |
| National Black MBA Association Scale-Up Pitch Challenge | $50,000 grand prize | See official rules | Annual, at the national conference | Private |
| NAACP Powershift Entrepreneur Grant | $25,000 | Black entrepreneurs | Not currently open | Private |
| Fearless Fund Strivers Grant | Was $20,000 | Was Black women owners | Closed permanently (2024 settlement) | Private |
| Comcast RISE | Was $5,000 + services (2025) | Small businesses in designated areas | No 2026 round | Corporate |
| PayPal Empowerment Grant | Was $10,000 | Black-owned businesses (2020) | One-time 2020 program, ended | Corporate |
For help crafting competitive applications, our grant proposal writing guide provides section-by-section templates. Many federal programs are found on Grants.gov, see our complete Grants.gov walkthrough. For the most accessible programs open in 2026, see our top 10 small business grants.
Open now: grants you can apply for
1. Galaxy Grants: $2,500, closes October 31, 2026
Galaxy Grants, run by the nonprofit Hidden Star, awards grants throughout the year to women and minority business owners in the U.S., at any stage from idea to established business. The current grant is $2,500, applying is free and takes about a minute, and the deadline is October 31, 2026. Apply at galaxyofstars.org.
2. Verizon Small Business Digital Ready: $10,000
Verizon's Digital Ready grants, administered by LISC, pay $10,000 to 10 small businesses a month, reviewed monthly through December 2026. You must be a U.S. for-profit business with an owner 18 or older and complete two Digital Ready courses or events in 2026 first. It is free. Apply at digitalready.verizonwireless.com.
3. Smaller open grants
NASE Growth Grants pay up to $4,000 to members, reviewed quarterly (membership $120 a year; nase.org). The Freed Fellowship awards $500 a month, with fellows considered for $2,500 ($19 fee). The Skip $10,000 Grant closes October 2, 2026 (Skip is a lead-generation platform). If your business does research and development, SBIR/STTR Phase I awards reach $323,090 at most agencies; see our startup grants guide.
4. National Black MBA Association Scale-Up Pitch Challenge
The NBMBAA Scale-Up Pitch Challenge awards a $50,000 grand prize at the association's annual conference, with finalists pitching to investors and corporate partners. Check nbmbaa.org for the current rules and application dates.
Federal contracting: SBA 8(a) under the 2026 rules
The SBA's 8(a) Business Development Program is not a grant. It is a 9-year program that gives participating businesses access to set-aside and sole-source federal contracts, management and technical assistance, mentorship, and joint ventures. 8(a) contracts can be awarded without competition up to $5.5 million, or $8.5 million for manufacturing.
What changed: SBA's final rule of August 11, 2026 (Federal Register 2026-16370), effective September 10, 2026, removed the rebuttable presumption that members of certain racial groups are socially disadvantaged, for all individually owned applicants including pending ones. You now show social disadvantage individually, with evidence of discrimination or bias you personally experienced and the harm it caused. Firms owned by tribes, Alaska Native Corporations and Native Hawaiian Organizations are not affected.
Still required: at least 51% ownership and control by U.S. citizens who are socially and economically disadvantaged (personal net worth under $850,000, excluding the business and your home equity), small under SBA size standards, generally two years in business (SBA can waive this), and an active SAM.gov registration. Apply through SBA's certification portal at certifications.sba.gov; program details are at SBA.gov.
Programs that have ended or paused
Black tech founders should also explore our startup grants guide for SBIR/STTR programs, and Black veterans can layer these programs with those in our veteran business grants guide. For state-specific programs, see our Ohio small business grants and California small business grants guides, both of which include minority-focused tracks. For education-focused initiatives, our education grants guide covers programs like The Gates Scholarship, which replaced the Gates Millennium Scholars. For nonprofit organizations serving Black communities, our nonprofit grants guide maps additional funding sources.
Amazon FBA sellers can find specialized tool reviews at BagEngine's FBA tools guide, and AI writing tools can help polish grant proposals, see Nesyona's AI tool reviews for options. For free courses that build business skills, EduBracket's free course guide lists entrepreneurship and finance courses. USDA programs also prioritize socially disadvantaged farmers, see our USDA agriculture grants guide for details.
Additional funding resources for Black entrepreneurs
Minority Business Development Agency (MBDA)
The MBDA is the federal agency for minority-owned business growth. It does not give grants to individual businesses; it funded Business Centers that offer free consulting and access to capital and contracts. A March 2025 executive order cut the agency and ended its grants; a federal court vacated those cuts in November 2025, and the government has appealed, so check whether your local center is operating before you rely on it. Start at MBDA.gov.
National Urban League Entrepreneurship Centers
The National Urban League runs Entrepreneurship Centers at a number of its affiliates, offering business training, one-on-one coaching and connections to lenders and local programs, with a focus on Black communities. The League has more than 90 affiliates; check nul.org for the centers near you.
CDFIs focused on Black communities
Community Development Financial Institutions (CDFIs) provide affordable loans and, in some cases, micro-grants to businesses in underserved communities. Look for a certified CDFI near you through the U.S. Treasury's CDFI Fund; many local and minority-led CDFIs focus on Black communities. These organizations offer loans at below-market rates with more flexible qualification requirements than traditional banks. Many CDFIs also administer micro-grant programs funded by corporate partners and government agencies.
Who should apply for Black-owned business grants
- Black-owned businesses at any stage, from pre-launch to established
- Businesses operating for 2+ years that sell to government (the usual 8(a) minimum)
- Tech and R&D startups led by Black founders (SBIR/STTR, pitch competitions)
- Businesses willing to apply to multiple programs simultaneously
- Entrepreneurs who also meet other demographic criteria (women, veterans), layer multiple programs
- Don't limit yourself to race-specific grants, also apply for general small business grants
- If you're a woman, double up with women's business grants (Amber Grant, IFundWomen, etc.)
- For immediate capital needs, CDFI microloans are faster than grants, apply in parallel
Do I need to prove my race to apply for these grants?
Are these grants affected by the Fearless Fund lawsuit?
Can I apply if my business is co-owned with a non-Black partner?
What's the most money I can realistically get from grants?
A grant is a one-time boost, so the best use of it is something that keeps producing. For a local service business that is often a real website with online booking, because it turns every search for your business into a customer who can book on the spot.
Bottom line
Start with what is open now: Galaxy Grants before October 31 and Verizon Digital Ready each month. If you sell to government, prepare an SBA 8(a) application under the 2026 rules, with your own evidence of social disadvantage. R&D startups should look at SBIR/STTR, and a free Hello Alice profile will flag new corporate rounds when they open. And don't forget to also apply for general small business grants, every program you're eligible for is worth pursuing. Read our grant writing guide →