Minority Entrepreneurship Grant Program Act of 2025
The Minority Entrepreneurship Grant Program Act of 2025 would require the Small Business Administration (SBA), in consultation with the Under Secretary of Commerce for Minority Business Development, to create a grant program. This program would provide funding to minority-serving institutions (MSIs) and historically Black colleges and universities (HBCUs) to create or expand programs that promote minority business ownership and entrepreneurship among student entrepreneurs. The bill authorizes a dedicated funding stream, sets minimum grant amounts, outlines eligible uses of funds, and establishes reporting and oversight provisions, including an advisory board to guide program design and Congress-facing recommendations. If enacted, the program could expand entrepreneurship education and support services at MSIs and HBCUs, increase the number of minority students who start or grow businesses, and generate ongoing data on program outcomes. It also creates a governance and accountability framework, including a new advisory board and annual congressional reporting.
Key Points
- 1Establishment and leadership: Not later than 180 days after enactment, the Administrator of the SBA, in consultation with the Under Secretary of Commerce for Minority Business Development, must establish a grant program within SBA to foster minority entrepreneurship at MSIs and HBCUs.
- 2Grant eligibility and scope: Grants will be awarded to MSIs and HBCUs to create or expand programs that increase minority business ownership and support student entrepreneurs. Institutions must apply with a plan showing need, how funds will be used, how services will support student entrepreneurs, and how programs will boost ownership and resources.
- 3Grant amount and use of funds: Each grant must be not less than $250,000. Funds may be used to create or expand programs offering business development resources such as free professional services (legal, accounting, HR, IT, marketing, training, counseling, networking) and access to capital resources to help form or grow new businesses.
- 4Reporting requirements: Grantees must submit annual mid-year and year-end reports detailing the number of student entrepreneurs trained, businesses created (including names, descriptions, and grant-funded amounts), referrals to SBA resources, and participant data disaggregated by sex, race, and ethnicity where possible.
- 5Congressional reporting and accountability: The SBA must, within 18 months of the first grant and annually thereafter, report to Congress on grant recipients, outcomes (trained entrepreneurs, businesses created, referrals, program participation), and any unexpended funds.
- 6Authorization of funding: The bill authorizes $50,000,000 to carry out the program.
- 7Advisory Board: The Administrator must establish a Minority Entrepreneurship Advisory Board within 180 days to develop recommendations on how MSIs and HBCUs can better serve minority businesses and entrepreneurs. Board members are appointed by the Administrator and should have relevant expertise. The Board must submit its recommendations to Congress within 18 months of enactment, and the Board is not subject to the federal advisory committee requirements of Chapter 10 of Title 5 U.S.C.