In partnership with American Express, the Backing Small Businesses grant program supports economically vulnerable and under-resourced small businesses with community reach.
This year, eligible small business owners can apply for $10,000 grants for projects that grow or improve their businesses by building community, supporting their economic viability, or bolstering meaningful change.
Applications began being accepted on March 14, 2024, through 11:59 pm on April 7. The application period will end once 5,000 applications have been submitted, even if that occurs before the deadline.
In 2021, American Express and Main Street America created the Backing Small Businesses grant program to help underresourced and economically vulnerable small business owners recover from the COVID-19 pandemic and grow their businesses.
In its first year, the program awarded $1.65 million in grants to 330 small business owners nationwide, and in its second year the program awarded over $2.3 million in grants to an additional 350 businesses.
Now in its third year, the program will increase grants awarded and double total funding to more than $5.7 million to further support under-resourced and economically vulnerable small business owners in building their economic vitality and fostering a thriving community.
In March 2024, applications will open for 500 small business grants of $10,000 to eligible businesses in the U.S. and U.S. territories.
Of the 500 recipients selected for $10,000 grants, a limited subset of 25 recipients will be awarded $30,000 Enhancement Grants, which will allow those business owners the opportunity to create transformative change within their business and in their community.
Recipients of the $10,000 grant will be required to submit a final grant report using a template provided. In addition to questions regarding the completed project, the report will include prompts on how the business would use the $30,000 Enhancement Grant. Enhancement Grant project proposals can be related to the $10,000 grant proposal or they may constitute a separate project.
Project proposals for the $10,000 grant application should be feasible to complete with only the $10,000 award. The $30,000 Enhancement Grants are available only to recipients of the initial $10,000 grant who successfully complete their projects. Enhancement Grant project proposals are completed separately, through the final grant report for the initial $10,000 grant.
A small business with community reach is involved in and critical to the surrounding community or serves a cultural- or ability-specific need. These businesses are often longstanding or legacy businesses that provide continuity and a sense of identity to a neighborhood or specific cultural group.
Businesses with community reach have also been intentional about developing core values and a business model that supports their communities or addresses an acute community need. For example, a business that regularly hosts free concerts featuring local artists, or a shop that provides goods or services that uniquely serve a customer base in the community.
Businesses must meet the following criteria to apply: The applicant must be an owner of the business.
The applicant must be at least age 18 years or older.
The business must be in a “bricks-and-mortar” location and operate in an older or historic main street, downtown, or commercial district in the United States.
The business must have occupied their current bricksand- mortar location since January 1, 2024. (Home-based businesses, even those located in historic neighborhoods, are not eligible. Brick and mortar businesses located outside of historic downtowns and commercial corridors, including, but not limited to, office parks and shopping malls are also not eligible.)
The business must be an independent business and not part of a franchise.
The business must employ 20 or less full time employees.
The business must have been in operation on or before January 1, 2023.
The business must be a business entity in good standing in the state in which it was formed and the state in which it does business.
The business must have an active business license, if required by state or local government. (Applicants may be asked to provide documentation if selected.)
Eligible grant expenses include but are not limited to: - Accessibility upgrades such as: ramp, menu translation, accessible website redesign for visually impaired people, etc.
- Community events and programs such as: open mic night, public educational/training workshops, hosting community fund raisers, partnerships with other small businesses.
- Equipment and inventory such as: point of sale device/ software, purchasing of items for sale, display cases, kitchen equipment.
- Marketing such as: investing in social media campaign, building a website, etc.
- Operational strategy such as: branding package, accounting software, business coaching, and other types of support that would increase the viability of a business.
Physical improvements such as: signage, awnings, painting facade, new shelving, new lighting, etc.
- Sustainability upgrades such as: solar panels, rain garden adjacent to business, investing in reusable/compostable/recyclable packaging alternatives, etc.
- Technology upgrades such as: building an online storefront, online ordering system, or other e-commerce platform) Utilities but must not be more than $2000 or 20% of the requested funds.
Note that payroll expenses are not eligible.
Applications will be reviewed based on: - Feasibility, the proposed project must be completed with $10,000 grant by September 9, 2024.
- Need, what are the business’s net sales? What are some of the systemic challenges the business is facing? Applicants will be asked to explain the context of the business.
- Impact, applicants should demonstrate both need for financial support and viability of their business to successfully make an impact with a grant. How much will a grant impact the business itself in leveraging sales, grow their customer base, or better sustain the business in some way?
- Community Reach, how involved is the applicant’s small business in their community? How much would the business serve a community-specific need through a grant?