Knowledge of applicable grants, tax credits, and tax deductions can help minority-owned businesses continue to grow.
Being the boss can be difficult, but a multitude of resources exist for a minority-owned business. Keep reading to learn about the grants, tax credits, and other tips that can help your business thrive.
What are Grants?
Grants are funds gifted by organizations. Even better, the receiver of these funds is not expected to repay any of the money. That being said, if you receive a grant, you must spend the money for its stated purposes.
Typically, you’ll need to submit an application and go through an evaluation process to win these funds. Grants may be awarded by:
- State or local agencies
- Private foundations
- Corporations
- Federal government
While grants are awarded to all types of businesses and non-profits, some are specifically designed for minority-owned enterprises. Let’s take a look at a few of those now.
Grants for a Minority-Owned Business
There many grants available for a minority-owned business. You can review this list of grant opportunities here:
- Coalition to Back Black Businesses
- The SoGal Black Founder Startup Grant
- Fearless Strivers Grant Contest
- digitalundivided’s BREAKTHROUGH Program
- The Power Forward Small Business Grant
- EnrichHER Small Business Grant
- Comcast RISE Investment Fund
- Galaxy of Stars Grant
- Wish Local Empowerment Program
Be aware, that each grant application will need you to meet specific requirements. Grants are wonderful tools, but they aren’t the only resources available.
Are there Tax Credits for a Minority-Owned Business?
Just like grants, tax credits can also help your business thrive. The IRS provides a list of some great credits. Here’s a few for your review:
- Disabled Access Credit
- Investment Credit
- Biofuel Producer Credit
- Credit for Small Employer Pension Plan Startup Costs
Your own state may offer enticing tax credit programs too. For example, California tax credits for businesses provide great support for local entrepreneurs.
In addition to tax credits, familiarize yourself with common tax deductions to take advantage of every opportunity to save.
Types of Tax Deductions
Running a startup is tough, but thankfully the costs of employee trainings and fees paid to consultants are tax deductible. You’ll also be able to deduct the following items from your taxes:
- Business auto insurance
- Business continuation insurance
- Business property insurance
- Liability insurance
- Life insurance used for succession planning
- Worker’s compensation insurance
- Electricity
- Gas
- Internet
- Landline telephone service
- Sewage
- Trash and recycling
- Water
This is not a complete list of possible deductions, so be sure to speak with your accountant come tax time. A thorough review of your business’ expenses and projects could reveal hidden savings.
What You Need to Know About Financial Tools for Minority-Owned Business
Building a business is not for the weak of heart, but tools like grants, tax credits, and tax deductions can take your business to the next level.
Don’t forget that grants do not need to be repaid. That being said, you must complete an application process and use your won funds as described in your application.
Tax credits can be awarded at the Federal and state level, so be sure to speak with a tax professional and make sure you’re not missing out on any savings opportunities.