3 Essential Steps (Plus 2 Bonus Strategies) for Black Women Entrepreneurs to Secure Grants and Loans

Linette Cottrell
Jul 16
2 min read

Black women entrepreneurs are some of the fastest-growing business owners in the U.S., yet we face systemic funding challenges—being 20% less likely to receive bank business loans, often relying on personal credit and savings. To increase chances of success, try this five-step strategy tailored just for you.

1. Map Your Funding Landscape: Know What’s Available

Grants: Explore programs aimed at Black women or women of color. Notable options include the HerRise Microgrant ($1,000/month), Galaxy Microgrants ($2,750–$3,500), and Wish Local ($500–2,000).
Loans: Look into SBA microloans (up to $50,000 with technical support) , plus CDFIs and community lenders like Opportunity Fund.

Action: Build a spreadsheet of 5–10 aligned grants and loans with deadlines, eligibility criteria, and amounts.

2. Build Your Fundable Foundation

Get certified: Register with the SBA Women-Owned Small Business (WOSB) or 8(a) programs via your local Women’s Business Center.
Sharpen your documentation: Have a concise business plan, financial projections, revenue history, and governance materials readily available.
Clarify purpose: For every application, define exactly how funds will be used and what impact you'll drive—grants are competitive, and lenders need confidence.

Action: Set quarterly “prep goals,” like finalizing your business plan or scheduling counseling with a WBC or SCORE mentor.

3. Craft Targeted Applications

Customize responses: Match your application narratives to each funder’s goals—e.g., community growth, women empowerment, tech innovation.
Use real-world proof: Back your narrative with data—revenue, lead metrics, testimonials, or anecdotal results.
Review & refine: Peer-review every application for grammar, clarity, and alignment. Include a reviewer who understands funding criteria.

Action: Maintain a living doc with boilerplate answers you can adapt quickly across grant and loan forms.

4. Amplify Your Reach Through Networks

Leverage partnerships: Join groups like Black Girl Ventures, National Minority Supplier Development Council, Hello Alice, and local MBDA business centers.
Use mentors and alumni: Connect with past winners from programs like Amber Grant or 1 Million Black Businesses for real advice.

Action: Attend one networking event or grant writing workshop per month to stay updated and connected.

5. Diversify & Have Backup Plans

Mix grants and loans: Grants are highly competitive and cyclical; loans can fill immediate cash flow gaps.
Explore non-traditional funding: Kiva crowdfunding, CDFI loans, ACE (bolstered by MacKenzie Scott) and micro-lenders have higher acceptance rates for Black women.
Consider competitions: Pitch contests run by corporate or nonprofit sponsors can offer both capital and visibility.

Action: Identify at least two "backup" funding options, such as a microloan or pitch contest, for each grant you pursue.

📌 Why This Matters

You're underserved: Black women receive less than 1% of venture capital and face greater credit barriers.
Grants change with policy: DEI-focused grants are shrinking —preparation matters more than ever.

Final Thoughts

Securing funding is not just about filling out applications, it's a strategic journey of positioning, preparation, and perseverance. Over time, with proven success, your business will attract more favorable funding terms and opportunities.

Next step: Download this checklist to track your five steps

or reach out to WOCIB for personalized coaching and support with developing your business plan. Let’s turn your vision into financially backed reality!

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