LGBTQ+ Small-Business Grants and Loans

LGBTQ-owned businesses are just as likely to apply for financing as non-LGBTQ-owned businesses but less likely to receive it, according to Federal Reserve data from 2023^[0]

That said, numerous organizations across the United States offer small-business grants and resources for LGBTQ+ entrepreneurs to help bridge the funding gap.

Here are some of the best options.

Grants for LGBTQ+ businesses

Small-business grants provide access to free financing — capital that doesn’t need to be repaid. Grants are available from various sources, and although applications can be time-consuming and competitive, the effort will be worth it if you can secure this funding for your business.

Astraea Lesbian Foundation for Justice

The Astraea Lesbian Foundation for Justice offers several grant options to U.S. and international businesses, focusing on nonprofits working toward social change.

For example, businesses in the U.S. can apply for a grant through the U.S. Fund, with amounts ranging from $5,000 to $30,000. To qualify, your organization should align with Astraea’s funding priorities, which include bodily autonomy, LBQ women leaders, housing and land acquisition, migrant justice and climate and natural disaster relief and resistance for Queer and Transgender People of Color (QTPOC) communities.

» MORE: Small-business grants for minorities

David Bohnett Foundation

The David Bohnett Foundation supports a range of nonprofit groups, including the LGBTQ+ community, leadership programs, and gun violence prevention, among others. For the LGBTQ+ community program, organizations must strive to better society through activism, notably by advocating for equal rights and protections for all LGBTQ+ people.

Currently, the foundation does not accept grant applications; proposals are by invitation only. To get your organization noticed for these types of nonprofit grants, you can hold community events to showcase your latest projects, invite grant funders to your events and encourage community members to talk and write reviews about how your organization has impacted them.

Restaurant Business Development Program

Food businesses may be eligible for this program that is administered by the Feed the Soul Foundation. Businesses must be at least 51% owned by someone who identifies as one of the following: LGBTQ+; Black, indigenous or Latinx; military combat veteran; formerly incarcerated individuals or senior citizens. In addition to a financial stipend, recipients will receive six months of educational training services. Applications for the latest cycle will run from Jan. 15 to April 15, 2025.

» MORE: Small-business grants for people with disabilities

Queer to Stay: An LGBTQ+ Business Preservation Initiative

Queer to Stay is an annual grant program administered by the Human Rights Campaign and the television network Showtime. This program supports small businesses focusing on LGBTQ+ people of color, women and the transgender community, especially those impacted by the COVID-19 pandemic.

When the initiative launched in 2020, it awarded funds to 10 businesses across the U.S. and has continued to grow each year. In 2024, 30 businesses received grant funding. Information for the 2025 cycle has not yet been announced, but applications typically open in the spring.

The Transform Business Grant

The Transform Business Grant is a microgrant designed to support individuals in systemically oppressed groups, such as people of color, formerly incarcerated individuals and queer, transgender and nonbinary individuals. Grantees are awarded $1,000 and a customized, year-long business strategy and development program —making it a good option for new businesses.

This startup business grant is administered twice yearly — applications are submitted for review in March and August. To qualify, you should be located in the U.S., be able to show a financial need and have a social impact-driven business or business ideas.

» MORE: Business grants for people previously convicted of felonies

NGLCC Community Impact Grant Program

The National LGBT Chamber of Commerce (NGLCC) Community Impact Grant Program is a funding initiative to support LGBTQ-owned or LGBTQ+ ally-owned restaurants. Through a partnership with the Grubhub Community Fund, the program offers grants ranging from $5,000 to $25,000 to restaurants, bars and cafes that serve food.

To qualify, you must provide proof that you are an LGBTQ-owned or allied establishment. Applications are accepted in batches based on location — East, Central, and West Regions. NGLCC has not yet announced application dates for the 2025 cycle.

National Pride Grant for LGBTQIA+ Small Businesses

The National Pride Grant offers eligible businesses the opportunity to receive one of 25 grant packages totaling $25,000. The grant program is distributed by Founders First, a nonprofit organization that supports and accelerates the growth of small businesses led by individuals from diverse backgrounds.

To qualify for the National Pride Grant, you must identify as an LGBTQIA+ business owner, have at least one year in business, employ two to 100 people and make less than $5 million in annual revenue. Applications are accepted on the Founders First website and must include a short pitch video. According to the website, pre-registration for the 2025 application cycle will be available soon.

Breva Thrive Grant

The Breva Thrive Grant, formerly the Cadence Cash Thrive Grant, offers $5,000 to small-business owners on a quarterly basis. Although this grant is not exclusive to LGBTQ+ businesses, the program prefers applicants who are making a direct impact in an underrepresented community.

To qualify, you must also have at least one year in business and be generating revenue (a minimum annual revenue of $35,000 is preferred). You can submit an application online through the Breva website. Applications for the first quarter will close on January 31, 2025.

Equity Fund Program

Through a partnership between the PFund Foundation and Quorum, the Equity Fund Program offers LGBTQ+ business grants ranging in amounts between $5,000 and $30,000. The program also provides a year of business education and networking.

To qualify, you must identify as LGBTQ+ and Black, Indigenous or a person of color. You must also be located in North Dakota, South Dakota, Iowa or Wisconsin and have been in operation for at least one year. Application dates for 2025 have not yet been announced.

» MORE: Business grants and resources for Black women

State and local grants

Many states, cities and local municipalities have dedicated grant programs for LGBTQ+ business owners. Some programs may be administered by your state or city’s chamber of commerce, whereas others may be distributed through a local LGBTQ+ advocacy organization.

For example, San Diego and New York City both offer local grants through their Pride organizations. These grants provide funding to nonprofit and community organizations who serve the LGBTQ+ community.

To find these types of grants near you, you can do an online search for “[Your City] LGBTQ+ business grants.”

Loans for LGBTQ+ businesses

If you don’t qualify for certain grants or want to look for other ways to fund your LGBTQ-owned business, you might consider a traditional small-business loan. Although there aren’t many business loans designed specifically for LGBTQ+ businesses, there are still different loan options you can explore:

• Bank loans. Banks usually offer loans with the most competitive rates and terms, but it can be difficult to qualify. You’ll typically need multiple years in business and strong credit to get a business bank loan. Some banks, like Zions Bank and BMO, have specific LGBTQ+ initiatives. At BMO, for example, LGTBTQ+ business owners may be able to access interest rate discounts on loan products.

• SBA loans. If you can’t qualify for a bank loan, an SBA loan may be a worthy alternative. SBA loans offer competitive rates and terms and are slightly easier to access than bank loans. In most cases, you’ll still need good credit and at least two years in business, however. SBA microloans are a particularly good option for LGBTQ+ businesses. This program is designed to fund traditionally underserved businesses, such as startups, people with limited credit histories and those located in low-income areas.

• CDFI and nonprofit loans. These lenders serve their local communities and work specifically to fund underserved business owners. Nonprofit and CDFI loans usually offer competitive rates and terms, but have more flexible requirements than banks or credit unions. CDFIs and nonprofit organizations also typically provide business support services, including training, coaching and mentorship.

• Online loans. If you’re looking for the fastest option, you’ll want to consider online business loans. These lenders tend to have flexible qualification requirements and can fund applications in as little as 24 hours. As a result of this speed and flexibility, however, online loans often have higher interest rates.

Additional resources for LGBTQ+ businesses

LGBTQ+ entrepreneurs can also use various resources to help them start and grow their businesses. These tools can provide additional financing opportunities, business training and community support, among other forms of assistance.

Gaingels

Gaingels is an investment organization that strives to help fund companies run by diverse and underrepresented individuals (including businesses owned by LGBTQ+ people). Gaingels has developed an ecosystem of private investors dedicated to diversity and inclusion — and these investors, along with the Gaingels company itself — work to offer capital to startups.

Pipeline Angels

Pipeline Angels is an angel investor firm that provides capital for transgender women, cisgender women, nonbinary, two-spirit, agender and gender-nonconforming founders. This firm provides finance through a pitch summit, in which entrepreneurs present a business idea in the hopes of receiving funding from one of the investors.

IFundWomen

IFundWomen is a marketplace that specializes in small-business grants for women. The company also offers business coaching, networking, training and crowdfunding. Within the crowdfunding platform, IFundWomen spotlights queer-owned businesses and their funding campaigns.

If you’d like to raise money through crowdfunding, you have to sign up for an account, add information about your business, set your funding goal and specify the rewards donors will receive for contributing. When you select that you’re a business owned by someone that is a member of the LGBTQ+ community, you’ll be added to the spotlight section on the site.

StartOut

StartOut is an organization that works to promote the growth of businesses run by LGBTQ+ people and ensure that LGBTQ+ entrepreneurs have equal opportunities for success. Through StartOut, business owners can access various resources, including a community network and forum, in-person and digital events, product discounts and expert office hours.

The organization also offers a mentorship program, an investor portal to help entrepreneurs looking for capital, and a startup accelerator. The StartOut Growth Lab is a five-month intensive program providing business owners mentorship, education and networking opportunities.

National LGBT Chamber of Commerce

The NGLCC is the largest advocacy organization committed to expanding economic opportunities for LGBTQ+ entrepreneurs and the only certifying body for businesses owned by LGBTQ+ people.

The LGBT Business Enterprise (LGBTBE) certification gives you access to the entire NGLCC network, which includes hundreds of corporate and government partners. After one year, certified LGBTBE businesses are also eligible for scholarship programs, mentorship and leadership training and other business development tools.

In addition to the LGBTBE certification, the NGLCC administers mentorship programs, in-person and virtual events, webinars and educational courses, among other initiatives. The organization also has a network of affiliate chambers, which can assist at a state or local level.

» Click here for more information on getting an LGBTBE certification

Backstage Capital

This venture capital fund invests in companies led by underrepresented founders, including women, people of color and LGBTQ+ entrepreneurs. You should be a highly scalable startup business that can generate a 10x return on investment.

Backstage Capital isn’t currently accepting new applications to its portfolio, but you can check its website for updates and utilize any additional resources they offer.

Small Business Development Centers

Small Business Development Centers (SBDCs) are sponsored by the U.S. Small Business Administration and hosted by local colleges, universities, state economic development agencies and other private organizations. These centers are designed to provide a wide range of support for small-business owners, including training, mentorship, coaching and networking.

Many SBDCs can connect you with experts to help you get funding, manage your finances, and grow your business. Although these centers are not explicitly dedicated to LGBTQ+ entrepreneurs, all business owners are welcome and can take advantage of their services.

»MORE: How to get certified as a minority-owned business

How to get certified as an LGBTQ+ business

You can certify your LGBTQ+ business through the National LGBT Chamber of Commerce. To get the organization’s exclusive LGBTBE Certification, follow these steps:

1. Create an NGLCC online account.

If you don’t have an account with the NGLCC, you’ll need to provide your email to create one. Once you’ve created your account, you can login to the NGLCC system and start the certification process.

2. Fill out your business profile.

You’ll complete a “business profile,” which includes basic information about yourself and your business, the products or services you provide and three references.

3. Provide certification requirements.

Next, you’ll upload business documents, including a brief history of your business, your formation documents, most recent tax documents, proof of U.S. residency and a resume. You’ll also need to sign an affidavit confirming all the information you’ve provided is accurate.

4. Pay the certification fee.

Once you submit your completed application, you’ll need to pay the $899 fee for a three-year certification. If you’re affiliated with a local Chamber of Commerce or LGBT partner organization, you can waive this fee.

5. Complete a site visit.

After you’ve submitted your application, the organization will schedule a site visit for your business. During this visit, an NGLCC representative will confirm the information in your application and learn more about your operations.

6. Wait for approval.

The National Certification Committee meets monthly to review and approve applications. Overall, it can take anywhere from 60 to 90 days after you’ve submitted your application to get certified as an LGBTQ+ business.