Federal Grants for Hispanic and Latino-Owned Businesses in 2026

Why This Matters: The Hispanic Business Gap

Hispanic Americans own 4.65 million businesses in the United States, making them the fastest-growing segment of small business owners. Hispanic-owned businesses employ over 3.2 million people and generate more than $800 billion in annual revenue.

Yet despite this scale, Hispanic-owned businesses receive a disproportionately small share of federal contracts and grant funding. According to the SBA's annual report, minority-owned firms collectively receive less than 10% of federal contract dollars, with Hispanic-owned firms among the most underrepresented relative to their business population size.

The reasons are structural: language barriers in complex application processes, lower rates of institutional banking relationships, less familiarity with federal procurement systems, and concentrated presence in industries (construction, food service, landscaping) that have historically required more effort to access government programs.

The programs below are designed specifically to close that gap. Using them effectively requires understanding what each one actually provides — and what it doesn't.

SBA 8(a) Business Development Program

The SBA 8(a) program is not a grant — it is a 9-year certification that gives your business access to sole-source federal contracts and set-aside competitions that non-certified businesses cannot pursue. In practice, this is often worth far more than a one-time grant.

Certified 8(a) firms can receive sole-source contracts up to $4.5 million (or $7 million for manufacturing contracts) without competing. They also participate in 8(a) set-aside competitions where only certified firms can bid, dramatically improving win rates. Federal agencies are required to set aside a percentage of their contracting budget for 8(a) firms, channeling billions annually through the program.

Eligibility Requirements

• Business must be at least 51% owned and controlled by a socially and economically disadvantaged individual
• Owner's personal net worth must be below $850,000 (excluding primary residence and 8(a) business equity)
• Owner's adjusted gross income averaged over 3 years must be $400,000 or less
• Business must have been in operation for at least 2 years
• Business must demonstrate potential for success

Hispanic Americans are among the groups that the SBA presumes to be socially disadvantaged — you do not need to submit an independent social disadvantage narrative. Apply through the MySBA portal at sba.gov. Processing times vary but typically run 90 days.

The 9-year program is split into a 4-year developmental stage and a 5-year transition stage. Strategically, firms should use the developmental stage to build capacity and track record, positioning for larger contracts in the transition stage.

MBDA Business Centers and Grants

The Minority Business Development Agency (MBDA), now an independent agency within the Department of Commerce following the CHIPS Act, operates a national network of Business Centers that provide free and low-cost services to minority-owned businesses.

MBDA centers help with:

• Access to capital: Connecting businesses with SBA loans, CDFI financing, venture capital, and federal grant opportunities
• Federal contracting: Identifying contract opportunities, bid preparation, teaming arrangements, and federal certification navigation
• Business growth: Strategic planning, market expansion, business plan development
• Corporate supply chain: Connections to major corporations seeking minority supplier diversity

Beyond centers, MBDA runs competitive grant programs directly. The MBDA Capital Readiness Program and Business Center grants fund organizations — typically CDFIs, chambers of commerce, and business development organizations — that in turn serve Hispanic and other minority entrepreneurs. These institutional grants are typically $500K–$5M per award.

Find your nearest MBDA Business Center at mbda.gov/business-centers. Centers operate in Los Angeles, Miami, Chicago, Houston, New York, San Antonio, Phoenix, and dozens of other cities.

USDA Rural Business Development Grants

The USDA's Rural Business Development Grant (RBDG) program provides grants of up to $500,000 for rural business development. Critically, these grants are not minority-specific — they are open to any business, organization, or government in a rural area. But because a significant percentage of Hispanic-owned businesses are located in rural and semi-rural communities (particularly in agricultural regions of California, Texas, Florida, and the Southwest), this program is highly relevant.

RBDG funds two types of projects:

• Opportunity grants: Smaller grants (typically under $50,000) for technical assistance, training, and planning activities
• Enterprise grants: Larger grants for economic infrastructure, revolving loan funds, and capacity building for rural small businesses

RBDG is administered by USDA Rural Development state offices. Applications are competitive and evaluated on economic impact, job creation, and leverage of other funding. The program is announced annually — check rd.usda.gov for current solicitations in your state.

HUD Section 3, DOT DBE, and Other Federal Programs

HUD Section 3

HUD's Section 3 program requires that contractors working on HUD-funded construction projects give hiring and contracting preference to low-income individuals and businesses in the project area. For Hispanic-owned construction and real estate service companies in urban areas with significant HUD activity, this is a meaningful pathway to government work. Section 3 businesses must be certified through local Public Housing Authorities or HUD regional offices.

DOT Disadvantaged Business Enterprise (DBE) Program

The Department of Transportation requires states and localities receiving federal transportation funding to direct a percentage of contracts to certified DBE firms. DBE certification is open to socially and economically disadvantaged business owners, and Hispanic Americans qualify under the social disadvantage presumption. DBE-certified firms can bid on set-aside portions of highway, transit, airport, and port construction projects funded by federal transportation dollars.

Certification is done at the state level through each state's DOT office. Once certified in one state, reciprocity may apply in others. This is particularly valuable for construction, engineering, trucking, and professional services firms.

SBA Community Advantage Loans

While not a grant, SBA Community Advantage (now the Community Advantage SBLC program) provides government-backed loans through mission-driven lenders specifically for underserved markets. Loan amounts up to $350,000 with lower collateral requirements make these more accessible than traditional SBA 7(a) loans. Many Hispanic business owners confuse loan programs with grants — this is a common error worth clarifying early in any financial planning process.

SBIR/STTR for Hispanic-Owned Tech Companies

The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs are the largest source of federal non-dilutive funding for early-stage technology companies. Any for-profit small business with fewer than 500 employees can apply — including Hispanic-owned technology, biotech, agritech, and engineering companies.

Eleven federal agencies run SBIR programs. Key agencies for Hispanic-owned tech firms:

Hispanic-owned tech companies should be aware of SEED (Strengthening Entrepreneurs' Economic Development), an NSF SBIR initiative that provides additional support to underrepresented founders — including mentorship, application assistance, and Phase 0 funding to prepare a Phase I proposal.

State-Level Programs: California, Texas, Florida, New York

Four states with the largest Hispanic business populations have dedicated programs worth knowing:

California: The California Office of the Small Business Advocate (CalOSBA) administers the California Microbusiness COVID-19 Relief Grant and the Small Business Technical Assistance Program, which channels funding to organizations serving Hispanic entrepreneurs. IBank's Small Business Finance Center offers loan guarantees. The GO-Biz Office provides fee waivers and expedited permitting for certified small businesses.

Texas: The Texas Economic Development Corporation operates the Texas Enterprise Fund and various regional economic development grants. The Texas Workforce Commission provides grants through the Skills Development Fund for employee training — directly accessible to Hispanic-owned businesses with workforce development needs.

Florida: Enterprise Florida administers the Florida Job Growth Grant Fund and the Incumbent Worker Training Program. The Florida SBDC Network, partially funded by the SBA, has multiple centers staffed with Spanish-speaking advisors particularly in Miami-Dade, Orlando, and Tampa regions.

New York: Empire State Development runs the Market NY grant program and the Small Business Revolving Loan Fund. NYC's Department of Small Business Services offers Neighborhood 360 grants for business district improvement and the NYC Business Solutions program with Spanish-language support.

Hispanic-Serving Institutions: Additional Funding Streams

If your business is connected to a college or university designated as a Hispanic-Serving Institution (HSI) — meaning at least 25% of full-time equivalent enrolled students are Hispanic — those institutions can access funding streams unavailable to general universities.

NSF HSI Program funds STEM education, research infrastructure, and faculty development at HSIs. Awards range from $500K to $5M. Businesses that partner with HSIs on research or workforce development can benefit indirectly through subcontracts and sponsored research agreements.

Department of Education Title V provides institutional development grants to HSIs for academic programs, facilities, and student services. Businesses providing educational technology, workforce training, or professional development services can partner with HSI Title V awardees.

There are over 500 HSI-designated institutions across the US, concentrated in California, Texas, Florida, New York, and New Mexico. hacu.net maintains an updated list.

How to Determine if You Qualify as Socially Disadvantaged

Under SBA regulations, the following groups are presumed to be socially disadvantaged without requiring an independent showing: African Americans, Hispanic Americans, Native Americans, Asian Pacific Americans, and Subcontinent Asian Americans. If you identify as Hispanic or Latino and can document it (typically with a personal statement and identification), you meet the social disadvantage component.

Economic disadvantage is separate and must be documented. The current thresholds:

• Personal net worth: below $850,000 (excluding primary residence and equity in the business being certified)
• Adjusted gross income: averaged $400,000 or less over the prior 3 years
• Fair market value of assets: below $6.5 million

For the DOT DBE program, economic disadvantage thresholds are: personal net worth below $2.047 million and business gross revenues below $30.72 million (for most industries). These are adjusted periodically; verify current limits at transportation.gov/civil-rights/disadvantaged-business-enterprise.

Organizations That Can Help

Frequently Asked Questions

Last updated March 2026. Program requirements, dollar thresholds, and eligibility criteria are subject to regulatory change. Verify current requirements with SBA, MBDA, and USDA directly before applying.