The U.S. Department of Commerce is launching a grant program of nearly $100 million to help tens of thousands of women and minority entrepreneurs boost and expand their businesses, in light of the structural barriers these groups face.
The Capital Readiness Program will provide $93.5 million in grants to business incubators and accelerators to connect underserved entrepreneurs to a channel of resources, training, and capital to develop their businesses. The program, an initiative of the Minority Business Development Agency of the Department of Commerce, represents the largest single investment in the agency’s history.
Recent research shows that businesses owned by individuals from minority groups were the hardest hit during the pandemic.
The grants, which a Department of Commerce official said will range from $2 million to $3 million each, will fund programs run by businesses, non-profit organizations, and universities, providing services ranging from financial literacy and technical assistance to networking, mentoring, and childcare services.
The grant program will focus on high-growth sectors such as healthcare, climate technologies, asset management, and infrastructure. It will also seek to assist entrepreneurs applying for funds provided by the Department of the Treasury’s Small Business Credit Initiative.