SBA Rolls Out $50M Grant Program Targeting Minority Student Entrepreneurs at HBCUs and MSIs

The Minority Entrepreneurship Grant Program Act of 2025 is setting up a new pipeline for student business owners, backed by a hefty $50 million authorization. The core idea is simple: have the Small Business Administration (SBA), working with the Under Secretary of Commerce for Minority Business Development, hand out grants to Historically Black Colleges and Universities (HBCUs) and various Minority-Serving Institutions (MSIs) to boost their student entrepreneurship programs. Within 180 days of the law’s enactment, the SBA needs to get this program running, focusing on helping minority students who are actively trying to start or grow a business.

The University as a Startup Accelerator

If you’re a student at an HBCU or MSI with a business idea, this bill could be a huge deal. Schools that successfully apply for the grant—and they have to show exactly how they plan to use the money—will receive a minimum of $250,000. That cash isn't for new football fields; it’s strictly for creating or expanding programs that provide real, tangible business assistance to student entrepreneurs. We’re talking about free legal services to set up your LLC, accounting help, HR support, IT consulting, and marketing training. Crucially, the funds can also be used to help students access the capital needed for startup costs, which is often the biggest hurdle for new ventures. For a student juggling classes and trying to launch a tech company or a physical product, getting that kind of professional support for free is a game-changer that cuts through the early-stage complexity and cost.

Accountability and the Fine Print

To make sure this $50 million is actually making a difference, the bill includes some serious reporting requirements. The schools that get the grants have to report back to the SBA twice a year, detailing how the money was spent, how many students they trained, and most importantly, listing every single business created using the grant funds. They must include the business name and a description of what it does. This level of tracking is designed to keep the focus on actual business creation, not just training seminars. Furthermore, the SBA has to send a comprehensive report to Congress every year, detailing exactly which schools got money, how many businesses were started, and how many students were helped overall. This ensures that the program’s effectiveness is measured by real-world outcomes.

The Advisory Board Exemption

The Act also creates a Minority Entrepreneurship Advisory Board to guide the program and provide expert recommendations to Congress on how to better support minority businesses. The members must have “top-notch qualifications” and deep knowledge of small business needs. However, here’s where the fine print gets interesting: the Board is specifically exempt from the usual rules governing federal advisory committees (known as Chapter 10 of title 5, U.S. Code). This exemption means the Board doesn’t have to follow standard bureaucratic requirements for transparency and public access that most federal advisory groups do. While this might speed up their work, it’s a detail worth noting for anyone who values open government, as it reduces the standard level of public oversight on who is advising the SBA and what recommendations they are making.