Federal Grant Program for Non-Profit Organizations Supporting Minority Businesses | Faegre Drinker Biddle & Reath LLP
A grantmaking program providing federal grants to support nonprofit organizations providing services to minority-owned businesses has been included in the Infrastructure Investments and Jobs Act that President Biden enacted. November 15, 2021 (the law).
Grants are intended to enable certain tax-exempt organizations (including those described in 501 (c) (3), (4), (5) or (6)) to continue to support the development, growth or retention of minority businesses. companies. For the purposes of the program, âminority business enterpriseâ is defined as a commercial enterprise (non-profit or for-profit) majority owned and operated by one or more persons who have been subjected to racial or ethnic or cultural prejudices. because of the individual’s identity as a member of a group (to presumably include individuals who are Black, Hispanic, Latino, American Indian, Native Alaskan, Asian, Native Hawaiian, or other Pacific Islanders).
Details of the program, including the application process and identification of the particular office within the Ministry of Commerce that will administer the program, have not yet been established. The law, however, specifies that eligible beneficiaries are non-profit organizations that can demonstrate that the provision of services to minority-owned businesses, whether through education, granting or loans , or other similar activities, is a main activity of the organization. In addition, the law specifies that the procedures established for the program must ensure that grants are awarded to a wide range of eligible entities, which may include both national and community organizations, those with an annual budget of less than 1 million dollars and those that serve primarily low-income and rural communities.
We will continue to monitor this program as it develops. If you believe your organization may be eligible for this program or would like to engage with decision makers as the program is developed, we encourage you to contact your Faegre Drinker primary contact. We can help you stay up to date on developments and opportunities for feedback.