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NGExpert financial copywriter
Page written by Ashlyn Brooks. Last reviewed on September 4, 2024. Next review due October 1, 2025.
Starting or growing a small business can be a challenge, especially for LGBTQ+ entrepreneurs who may face additional barriers.
Fortunately, there are specific business grants and resources available to support LGBTQ+ businesses. This guide will help you understand the various grants and resources that can provide the financial support you need.
Before applying for any grant, it’s important to determine how much funding you require. This involves assessing:
Having a clear financial plan will help you choose the right grant and improve your chances of securing funding. Use financial planning tools or consult with a financial advisor to develop a detailed budget.
Numerous organizations provide grants specifically for LGBTQ+ businesses. Here are some prominent ones:
Award amount: $5,000 – $30,000
The Astraea Lesbian Foundation for Justice supports LGBTQ+ projects worldwide. They focus on grassroots organizations that advocate for social justice.
Their grants are ideal for initiatives that promote equality and inclusivity. Examples of funded projects include community centers, advocacy groups, and health services tailored to LGBTQ+ needs.
Award amount: $5,000 – $25,000
Offered by the National LGBT Chamber of Commerce (NGLCC) in partnership with various corporations, this grant supports LGBTQIA+ small businesses that contribute positively to their communities. This grant aims to foster economic empowerment and community development.
Award amount: $1,000
This micro-grant is specifically aimed at trans and non-binary entrepreneurs, providing them with the necessary funds to start or expand their businesses.
The Transform Business Grant helps break down financial barriers for trans and non-binary individuals. It supports ventures across various industries, from tech startups to retail stores.
Award amount: $5,000
The Cadence Cash Thrive Grant supports LGBTQ+ entrepreneurs in achieving their business goals. It focuses on funding businesses that create social impact and promote diversity and inclusion.
Recipients of this grant often work in sectors like education, healthcare, and the arts, where they can make significant community contributions.
Amount awarded: $250 – $2million+
The David Bohnett Foundation provides funding to LGBTQ+ organizations and projects that address social issues and drive community improvement. They offer various grants through their database, including ones for technology and leadership development.
This foundation has supported numerous projects, from scholarship programs to innovative tech solutions for social challenges.
For LGBTQ+ restaurateurs, these programs provide grants and resources to help start or expand a restaurant. It includes funding for kitchen equipment, marketing, and staff training.
Amount awarded: $5,000 – $100,000
The NGLCC’s Community Impact Grant Program works in partnership with Grubhub and offers financial support to LGBTQ+ business owners who are certified through the NGLCC. It aims to enhance economic opportunities and growth within the LGBTQ+ community. This program supports a diverse range of businesses, from consulting firms to creative agencies.
Amount awarded: $5,000
This grant support is not explicitly for the LGBTQ+ community but it can include the. Specifically, the Pepper grant is for Black women entrepreneurs, regardless of sexual identity, to launch and grow their businesses. It provides necessary funding and mentorship to help them overcome financial and social barriers. The Pepper Startup Grant focuses on empowering Black women to create sustainable and impactful businesses.
Amount awarded: 10 recipients over $ 1 million total
A joint initiative by the Human Rights Campaign and Showtime, this grant program aims to preserve LGBTQ+ businesses impacted by the COVID-19 pandemic, offering financial aid to ensure their survival and growth. This initiative has helped many businesses stay afloat during challenging times, preserving vital services for the LGBTQ+ community.
Many states and municipalities offer grants specifically for LGBTQ+ businesses. These grants vary by location and are designed to support local economic development and diversity. Check with your local government or economic development office for available opportunities.
In addition to grants, several resources can support LGBTQ+ entrepreneurs:
Gaingels is a network of investors who support and invest in LGBTQ+ founders and executives. They provide both funding and mentorship, helping businesses grow and thrive. Gaingels also offers networking opportunities, connecting LGBTQ+ entrepreneurs with potential partners and customers.
Pipeline Angels is an investment network focused on supporting women, non-binary, and femme entrepreneurs. They offer funding, mentorship, and networking opportunities to LGBTQ+ businesses. Pipeline Angels’ programs include pitch summits, where entrepreneurs can present their ideas to potential investors.
IFundWomen is a crowdfunding platform dedicated to women entrepreneurs, including LGBTQ+ women. They provide access to capital through crowdfunding, coaching, and over 20 grants. IFundWomen offers a supportive community and resources to help entrepreneurs launch and scale their businesses successfully.
StartOut is a nonprofit organization that promotes LGBTQ+ entrepreneurs. They offer mentorship, networking, and access to capital, helping LGBTQ+ businesses succeed. StartOut also hosts events and provides online resources to foster entrepreneurial growth.
The National LGBT Chamber of Commerce (NGLCC) offers certification, networking, and advocacy for LGBTQ+ businesses. Their resources help LGBTQ+ entrepreneurs gain access to corporate partners and new business opportunities. Certification through the NGLCC can open doors to supplier diversity programs and larger markets.
Backstage Capital invests in underrepresented founders, including LGBTQ+ entrepreneurs. They provide funding, mentorship, and resources to help diverse businesses grow. Backstage Capital’s portfolio includes innovative startups across various industries.
SBDCs offer free business consulting and training services to small business owners, including LGBTQ+ entrepreneurs. They provide assistance with business planning, marketing, and financial management. SBDCs are a valuable resource for both new and established businesses.
Grants are not the only source of funding for LGBTQ+ businesses. Here are some alternatives:
Term loans provide a lump sum of money that you repay over a set period with interest. They are ideal for significant expenses like equipment purchases or business expansion. Term loans offer predictable payments and can be tailored to meet your business’s needs.
A business line of credit offers flexible access to funds, allowing you to draw money as needed and pay interest only on the amount used. It’s useful for managing cash flow and unexpected expenses. Lines of credit provide ongoing access to capital without reapplying for new loans.
Invoice financing allows you to borrow against your outstanding invoices, providing immediate cash flow. This is especially beneficial for businesses with slow-paying clients. Invoice financing can help bridge the gap between invoicing and payment receipt, ensuring steady cash flow.
Equipment financing helps you purchase necessary equipment by using the equipment itself as collateral. This can be a good option for businesses needing specific machinery or technology. Equipment financing spreads the cost over time, making it more manageable.
A merchant cash advance provides an upfront sum in exchange for a percentage of future sales. This option is suitable for businesses with strong sales but limited credit history. Merchant cash advances offer quick access to funds, though they may come with higher fees.
Revenue-based financing, also known as accounts receivable financing, offers funds in exchange for a percentage of future revenue. This type of financing aligns repayments with business performance, making it ideal for businesses with fluctuating income.
SBA loans are government-backed loans that offer favorable terms and low interest rates. They are available for various business needs and can be an excellent option for LGBTQ+ entrepreneurs. SBA loans include options like the 7(a) loan program and the microloan program, each tailored to different business requirements.
At Swoop, we provide innovative financial solutions to support your business journey. Whether you’re looking for grants, loans, or other funding options, we can help you explore all available opportunities.
Visit our website and book a call to find the best funding options for your LGBTQ+ business. Let’s take the first step towards your business success together.
Written by
Ashlyn is a personal finance writer with experience in business and consumer taxes, retirement, and financial services to name a few. She has been published in USA Today, Kiplinger and Investopedia.
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