MBDA Capital Readiness Program
Minority Business Development Agency — U.S. Department of Commerce
$400,000–$1,000,000
Researched for this program: 4 rejection traps · 7 required documentsWhat decides this award ↓
Intermediary-funded ecosystem building for minority entrepreneurs
The MBDA Capital Readiness Program (CRP) funds intermediary organizations — nonprofits, universities, state entities, and CDFIs — to operate three-pillar technical assistance programs for minority-owned businesses: Pillar 1 accelerates growth for high-potential minority firms; Pillar 2 provides technical assistance for businesses seeking equity or debt financing; Pillar 3 supports the commercialization of minority-invented technologies. Intermediary organizations receive grants of $400,000–$1 million to deliver free or subsidized capital-readiness services to SEDI (socially and economically disadvantaged individual) entrepreneurs. The program does not provide direct grants to minority businesses.
- Funding type
- Program
- Level
- Federal
- Amount range
- $400,000 – $1,000,000
- Realistic amount
- Intermediary recipients typically receive $500,000–$800,000 over 2 years. SEDI business participants receive free or hea…
- Deadline
- Annual competition — 2023 cohort active; 2025 cohort may have launched. Monitor mbda.gov/grants for current NOFO status.
- Status
- active
- States
- Nationwide
- Payment model
- reimbursement
Who qualifies
- DIRECT APPLICANTS (intermediaries) must be: nonprofits, educational institutions, for-profit organizations, state/local government entities, or tribal entities with demonstrated capacity to provide business development services
- Intermediaries must have experience serving socially and economically disadvantaged (SEDI) entrepreneurs
- SEDI business beneficiaries include: minority-owned businesses, women-owned businesses, veteran-owned businesses, and other disadvantaged groups
- Intermediary must commit to delivering all three Program Pillars (growth acceleration, capital-readiness TA, tech commercialization) or at minimum two
- FOR-PROFIT MINORITY BUSINESSES: not direct recipients — they receive services from funded intermediaries
Hard requirements
- Funds intermediaries, not businesses directly
- Must be incorporated
- Demographic eligibility: minority-owned
What it covers
Eligible expenses
- Staff salaries for business advisors, coaches, and program administrators
- Subject matter expert consultants and mentors
- Programming and events for SEDI entrepreneur participants
- Technology tools and platforms for delivering TA services
- Outreach and marketing to recruit eligible SEDI businesses
- Travel related to program delivery
Ineligible expenses
- Direct grants or cash to individual businesses (funds stay with the intermediary for service delivery)
- Capital investments in real estate or major equipment for the intermediary organization
- Lobbying activities
How to apply
-
1
Monitor MBDA for NOFO publication
Watch mbda.gov/grants and grants.gov for the annual Capital Readiness Program NOFO. Subscribe to MBDA updates at mbda.gov to get notifications.
-
2
Submit full application via grants.gov
Eligible intermediary organizations submit full applications including: organization overview, program design for all three pillars, team qualifications, budget narrative, and evidence of prior work with SEDI entrepreneurs.
-
3
MBDA merit review and award
MBDA conducts merit panel review of all applications. Awards announced and cooperative agreements executed. Performance period typically 24 months.
-
4
Deliver services to minority businesses
Funded organizations recruit SEDI business participants, deliver capital-readiness services across all three pillars, and report quarterly outcomes to MBDA (clients served, capital raised, jobs created).
Minority businesses looking for CRP services: find funded intermediaries via MBDA's Business Center locator at mbda.gov/business-centers. You don't apply to MBDA directly — you engage the local intermediary that won the CRP award.
Deadline & timing
Annual or biennial competition. Most recent major NOFO was for the 2023 cohort (approximately $50M program across multiple awards). Check mbda.gov/financial-resources/grants for current NOFO publication.
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