richardmurray

(Image by Magnolia134 via Wikimedia Commons) Donald R. Cravins Jr. headshot. 14 February 2022.

NEW EFFORT AIMS TO CUT LARGE FUNDING GAP BETWEEN UNDERSERVED ENTREPRENEURS, PEERS
Jeffrey McKinneyJanuary 10, 2023 

Consider that Black entrepreneurs on average have $35,000 of capital to start a business. In comparison, white entrepreneurs have more than $100,000 of capital to do the same.

Those were among new thought-provoking statistics mentioned last week by Donald R. Cravins Jr., the first Under Secretary of Commerce for Minority Business Development. He leads the Minority Business Development Agency (MBDA). A part of the U.S. Department of Commerce, the MBDA is the only federal agency dedicated to the growth and global competitiveness of U.S. minority business enterprises (MBEs).

Cravins talked about the MBDA Capital Readiness Program, which will award almost $100 million to expand opportunities for underserved entrepreneurs, including businesses run by Black owners.

The MBDA is seeking applications for its new $93.5 million program grant competition to assist minority and other underserved entrepreneurs launch and grow their businesses.

In a live video conference viewed by BLACK ENTERPRISE, Cravins stated, “It will help tens of thousands of underserved entrepreneurs jump start and scale to grow for industries, including health, healthcare management, and infrastructure.” He added the effort will provide funding for nonprofits and universities.

He said the program, initially announced here, will provide services to underserved entrepreneurs to help them access capital opportunities, networks, and build capacity for their businesses. The MBDA-run program is the largest of its kind in the U.S. Department of Commerce’s history.

Cravins said the program will help fund business incubators or accelerators. The funds provided by the grant to these incubators and accelerators will help businesses and entrepreneurs navigate the unique systems and barriers they face. He explained underserved entrepreneurs, including those with disabilities, people of color, and entrepreneurs or founders living in rural communities will be targeted. “People who are living in groups or part of groups that have been underserved in our nation’s history.”

Grants will be awarded to entities that serve entrepreneurs. Cravins said services will include resources for minority and other underserved entrepreneurs to access capital and gain funding, technical assistance, networking opportunities with peers, experts, and vendors, as well as mentorships.

The novel program comes as businesses owned by women of color are among the fastest growing sectors in the economy. Yet, structural barriers remain, preventing many women from starting their own businesses and accessing capital, childcare solutions, and peer networks.

Cravins was confirmed in his new role last August by the U.S. Senate and his appointment was announced by U.S. Secretary of Commerce Gina Raimondo.

When he speaks to entrepreneurs across the country, especially those of color, Cravins says they tell him a huge barrier they face is access, including access to capital. Among his goals: reduce the large funding gaps between minority entrepreneurs compared with their non-diverse peers. “We know those statistics are there and we know MBDA has to do something to change that narrative.”

The application deadline for the grants is Feb. 28, 2023. Check here for more details and to apply.

< https://www.mbda.gov/mbda-capital-readiness-program-grant-competition> 

Article URL
https://www.blackenterprise.com/new-mbda-effort-aims-to-cut-large-funding-gaps-between-underserved-entrepreneurs-and-their-peers/?utm_source=Newsletter&utm_medium=email&utm_campaign=Newsletter_01/10/2023

MBDA Capital Readiness Program Grant Competition

Application Deadline: February 28th, 2023
Click Here to APPLY!
https://www.grants.gov/web/grants/view-opportunity.html?oppId=345054

MBDA is seeking proposals for its $93.5 million Capital Readiness Program grant competition to help minority and other underserved entrepreneurs launch and scale their businesses. This Program will provide funding to incubators, accelerators, and other eligible organizations across the country with expertise to support underserved entrepreneurs by providing training and other critical resources, tools, and technical assistance to access capital.

Jumpstarting the next generation of entrepreneurs is essential, not only to spurring innovation, but also to building a more resilient economy that’s reflective of all Americans. That’s why this competition seeks proposals from applicants who will:

serve minority, women, and other underserved populations;
help entrepreneurs build capacity;
attract and provide access to capital opportunities;
provide access to networks.
MBDA encourages organizations that have not traditionally focused their services to meet the needs of underserved communities to form strategic alliances with entities that serve those communities to apply for this funding opportunity.

MBDA plans to fund proposals for up to $3 million over four years per grantee. The Capital Readiness Program is intended to serve entrepreneurs and businesses that are applying, have applied, or plan to apply to Treasury’s State Small Business Credit Initiative (SSBCI) or other government programs that support small businesses.

The following are categories of organizations eligible to apply for this funding opportunity:

Non-profit organizations;
Private sector entities (defined as entities that are not public sector entities). This includes, for example, for-profit entities of any type, including sole-proprietorships, partnerships, limited liability companies, and corporations, but does not include public sector entities such as Federal, State, Local, or Tribal Governments, agencies, or any of their instrumentalities;
Institutions of higher education;
A consortium of two or more of any of the above-mentioned eligible applicants. In a consortium application, there must be a designated lead applicant; the lead applicant would enter into the award agreement with MBDA and assume primary operational and financial responsibility for completing the project should an award be made.

APPLICATIONS ARE DUE ON FEBRUARY 28, 2023. Applicants must submit their applications for funding via grants.gov.
Applicants are also encouraged to submit an email of intent to apply by January 31, 2023. The NOFO includes a sample email of intent for reference.

MBDA has planned a series of webinars on January 10th, 17th, and 24th from 2:00 – 3:00 pm EST intended to help potential applicants understand the program requirements and application processes.

The MBDA Grant Application in 5 Steps
Register your organization to apply for a MBDA grant. Register your business to obtain a Unique Entity ID number < https://sam.gov/content/home > so that your application can be tracked. Next register with SAM  < https://sam.gov/content/home > . To do this, you will need to identify the authorizing official for your organization and an Employer Identification Number. These two numbers are needed to create a Grants.gov account 
Understand the Grant Announcement. Visit the specific grant page on MBDA.gov to learn more about the program and find frequently asked questions. Then, locate and download the grant application package from Grants.gov. 
Attend pre-application webinars to learn more about the grant and requirements. All webinars are recorded and made available at mbda.gov for future reference. 
Understand the evaluation process. Thoroughly read the announcement, paying special attention to key sections including eligibility, deadline, and selection process. Also, be sure to address all requirements outlined in the announcement.
Prepare and Submit Application. When application is complete, log onto Grants.gov and submit application. Application MUST be submitted before deadline. After submission, print confirmation of submission.

Page URL
https://www.mbda.gov/mbda-capital-readiness-program-grant-competition