Minority Business Grants in Texas: Programs and Resources

Minority-owned businesses are a major force in the Texas economy. From the border cities to the Dallas-Fort Worth metroplex, minority entrepreneurs drive innovation, create jobs, and serve communities across the state. Yet access to capital remains one of the most persistent challenges, with minority business owners approved for traditional bank loans at significantly lower rates than the national average.

The good news is that federal, state, and local governments have created targeted programs to close this gap. This guide covers the most important minority business grants Texas programs available in 2026, including certification programs, direct funding, procurement preferences, and community lending resources.

Texas HUB Program

The Texas Historically Underutilized Business (HUB) Program is the state's primary certification program for minority-owned, women-owned, veteran-owned, and disabled-owned businesses. HUB certification is free and opens the door to state contracting opportunities.

Texas state agencies are required to make a good faith effort to use HUB vendors, and many agencies set specific HUB participation goals on their contracts. Categories covered include professional services, construction, commodities, and other services. In fiscal year 2025, Texas state agencies spent billions on HUB-certified vendors.

To qualify for HUB certification as a minority-owned business, you must be a for-profit business with its principal place of business in Texas, be at least 51% owned by a person who is part of an economically disadvantaged group (including Black, Hispanic, Asian Pacific American, Native American, or American women of any ethnicity), and the owner must actively manage the business. See our detailed guide to Texas HUB certification benefits.

SBA 8(a) Business Development Program

The SBA 8(a) program is the most significant federal program for minority-owned small businesses. It provides a nine-year business development program that includes access to sole-source federal contracts, management and technical assistance, mentorship through the mentor-protege program, and eligibility for set-aside contracts.

To qualify, your business must be at least 51% owned by a socially and economically disadvantaged individual, be a small business by SBA size standards, demonstrate good character and potential for success, and have been in business for at least two years (though waivers are available). The 8(a) program can be transformative for businesses that qualify — participants gain access to billions of dollars in federal contracts that are not available to non-certified firms.

City-Level MBE Programs

Houston M/WBE Program

The City of Houston's Office of Business Opportunity administers the M/WBE (Minority/Women Business Enterprise) certification program. The city sets M/WBE participation goals on city contracts, and certified businesses can participate as prime contractors or subcontractors. The program includes capacity-building workshops, networking events, and access to city procurement opportunities. Full guide to Houston business programs.

Dallas Business Inclusion and Development

The City of Dallas Office of Business Inclusion and Development certifies minority-owned, women-owned, and disadvantaged businesses for participation in city contracts. Dallas sets specific participation goals on construction, professional services, and goods contracts. The city also offers business development programs and procurement assistance for certified businesses. Full guide to Dallas-Fort Worth business programs.

San Antonio Small and Minority Business Resources

San Antonio's Department of Economic Development offers procurement preferences and capacity-building programs for minority-owned businesses. The city's Small Business Office provides technical assistance, bonding support, and connections to city contracting opportunities. Full guide to San Antonio business programs.

Austin MBE/WBE Certification

The City of Austin certifies minority-owned and women-owned businesses for participation in city contracts. Austin's program includes participation goals on city projects and a Small and Minority Business Resources program that provides training and technical assistance.

CDFI Community Lenders

Community Development Financial Institutions (CDFIs) are one of the most important funding sources for minority-owned businesses in Texas. CDFIs are mission-driven lenders that provide affordable loans and business development services to underserved communities. Unlike traditional banks, CDFIs are specifically designed to serve borrowers who have difficulty accessing conventional financing.

Key Texas CDFIs serving minority-owned businesses include:

• LiftFund: Based in San Antonio, LiftFund is one of the largest CDFIs in the country. They provide microloans and small business loans to minority-owned businesses across Texas, with a focus on underserved communities. Loan amounts range from $500 to $5 million.
• PeopleFund: Based in Austin, PeopleFund provides loans from $5,000 to $200,000 to small businesses that cannot access traditional financing. They serve businesses statewide and have a particular focus on minority-owned, women-owned, and rural businesses.
• BCL of Texas: BCL provides affordable loans for small businesses and community development projects across Texas. Their programs target underserved communities and include both lending and technical assistance.
• Opportunity Fund: Operating in Texas and other states, Opportunity Fund provides microloans and small business loans with flexible requirements designed for businesses that do not qualify for bank loans.

Federal Programs Beyond 8(a)

Minority Business Development Agency (MBDA)

The MBDA operates Business Centers across the country, including in Texas. These centers provide business consulting, access to capital assistance, and help with government and commercial contracts. MBDA Business Centers focus specifically on helping minority-owned firms grow and compete.

SBA Microloan Program

The SBA Microloan program provides up to $50,000 through nonprofit intermediary lenders. While not exclusively for minority-owned businesses, microlenders often specifically target underserved communities. Texas microlenders like LiftFund and PeopleFund participate in this program. Full guide to government-backed loans in Texas.

HUBZone Program

The HUBZone program provides federal contracting preferences to businesses located in Historically Underutilized Business Zones. Many HUBZone areas in Texas overlap with minority communities. Businesses located in a HUBZone can access sole-source contracts up to $7 million for manufacturing and $4.5 million for other contracts, plus a 10% price evaluation preference in full and open competitions.

Grants from Nonprofit and Private Organizations

Beyond government programs, several private organizations offer grants specifically for minority entrepreneurs:

• National Minority Supplier Development Council (NMSDC): Provides certification that connects minority-owned businesses with corporate supply chain opportunities. NMSDC also offers business development programs and access to capital initiatives.
• Local chambers of commerce: The Texas Black Chamber of Commerce, the Texas Association of Mexican-American Chambers of Commerce, and the Texas Asian Chamber of Commerce all provide networking, advocacy, and business development resources.
• Foundation grants: Organizations like the Kauffman Foundation and local community foundations periodically offer grants targeting minority entrepreneurs.

How to Maximize Your Opportunities

1. Stack certifications: Get certified at every level — Texas HUB, city MBE, SBA 8(a), and HUBZone if applicable. Each certification opens different opportunities, and having multiple certifications makes your business eligible for the widest range of programs.
2. Build a CDFI relationship: Even if you do not need a loan today, establishing a relationship with a CDFI provides access to business development resources and positions you well for future funding needs.
3. Use free counseling: SBDCs, SCORE chapters, and MBDA Business Centers provide free business counseling that can help you strengthen grant applications and grow your business.
4. Monitor procurement portals: State and city procurement portals list upcoming contracts. Once certified, actively monitor these portals and bid on contracts you can perform.
5. Start with smaller contracts: Build your past performance record with smaller government contracts before pursuing larger opportunities.

Bottom Line

Minority business grants in Texas span federal certification programs, state procurement preferences, city-level MBE programs, and community lending through CDFIs. The strongest strategy is to pursue multiple certifications simultaneously while building relationships with CDFIs and business development organizations.

Not sure which programs may fit your business? Our free screening report checks your business against 150+ verified programs — grants, tax credits, loans, and incentives — and shows you which ones may match. Start your free screening →