The Honest Picture in February 2026
The federal programs that historically supported minority and women-owned businesses have been restructured, defunded, or eliminated over the past 12 months. Understanding what happened is essential to knowing where to look now. The Minority Business Development Agency (MBDA), made permanent by Congress in 2021 with bipartisan support, has been effectively shut down. Staff were terminated, grant programs cancelled, and the agency is reportedly down to one employee. The FY2026 White House budget proposed full elimination. The SBA 8(a) Business Development Program shifted to race-neutral social disadvantage standards on January 22, 2026. Race-based presumptions of social disadvantage were eliminated. Only 65 companies were admitted to the program in all of 2025, down from over 550 per year under the previous administration. In December 2025, 4,300 existing 8(a) contractors were audited. Over 1,000 were suspended for noncompliance with document requests. On February 11, 2026, 154 Washington, D.C.-based 8(a) firms received termination letters. The Trump administration's FY2026 budget proposed eliminating Women's Business Centers, SCORE chapters, and Veterans Business Outreach Centers. Congress rejected the cuts and funded WBCs at $27 million. CDFIs (Community Development Financial Institutions) were preserved at $324 million for FY2026, level with FY2025, despite proposed cuts. The WOSB and EDWOSB federal contracting programs remain operational. The 5 percent goal for women-owned small business contracts continues. Private foundation grants and corporate programs are growing to fill gaps left by federal retrenchment. Monthly programs like the Amber Grant and rolling platforms like Hello Alice provide accessible alternatives.
The 8(a) Program: Still Open But Fundamentally Different
The SBA 8(a) Business Development Program provides certified small businesses access to sole-source and set-aside federal contracts over a nine-year period (four years development, five years transition). It remains the most powerful federal contracting tool for disadvantaged businesses, but the pathway to certification has changed significantly. Sole-source contract thresholds are unchanged: $4.5 million for non-manufacturing and $7 million for manufacturing. DoD sole-source contracts up to $100 million do not require additional justification. Economic disadvantage requirements: personal net worth below $850,000, adjusted gross income of $400,000 or less averaged over three years, total personal assets below $6.5 million. The business must be 51 percent owned and controlled by a U.S. citizen who is socially and economically disadvantaged. Two years in business minimum. What changed: every applicant must now individually demonstrate social disadvantage through a fact-specific inquiry. Previously, members of certain racial and ethnic groups were presumed socially disadvantaged. The SBA's new guidance defines social disadvantage to include being "the victim of illegal or radical DEI policies, illegal affirmative action policies, or the victim of discriminatory practices such as race-based quotas, set-asides, or hiring targets." The practical impact is a dramatic reduction in admissions: 65 firms in 2025 versus the historical rate of 500-plus per year. If you are considering 8(a) certification, the application is submitted through Certify.SBA.gov. Prepare detailed documentation of individual social disadvantage. The bar is significantly higher than before. See our set-asides guide for how 8(a) contracts work.
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WOSB and EDWOSB: Operational and Unchanged
The Women-Owned Small Business Federal Contracting Program reserves certain federal contracts for women-owned businesses in industries where women are underrepresented. Unlike 8(a), this program has not been restructured. The federal goal is 5 percent of all federal contract dollars directed to WOSBs. With over $500 billion in annual federal procurement, this is a substantial pool. Sole-source contract thresholds: up to $4.5 million for all industries and $7 million for manufacturing. Competitive set-asides have no dollar cap. WOSB certification requires the business be 51 percent owned and controlled by one or more women who are U.S. citizens. Certification is valid for three years. Apply through MySBA Certifications or through third-party certifiers WBENC and NWBOC. EDWOSB (Economically Disadvantaged) adds economic thresholds identical to 8(a): personal net worth below $850,000, adjusted gross income $400,000 or less, total assets below $6.5 million. EDWOSB certification unlocks additional set-aside categories. Important: SBA provided a one-year eligibility extension for WOSB and EDWOSB firms whose three-year certification renewal falls between June 2024 and May 2026. If your certification was due for renewal in this window, check your status. Search Funding Landscape to find open WOSB set-aside contracts alongside other opportunities.
What Happened to the MBDA
The Minority Business Development Agency was the only federal agency dedicated exclusively to the growth and competitiveness of minority-owned businesses. Congress made it permanent through the Minority Business Development Act of 2021 with bipartisan support. In March 2025, the administration issued an executive order directing elimination of the MBDA to the maximum extent consistent with applicable law. Staff were terminated. Grant programs were cancelled. Signage was removed from the Department of Commerce. The agency, which employed approximately 100 workers at full capacity, is reportedly down to one employee. MBDA previously operated over 40 Business Centers nationwide providing free consulting, financial planning, capital access assistance, and federal contracting support to minority-owned businesses. The Senate Commerce Committee has asked the GAO to investigate whether the administration violated congressional directives. Democratic senators have challenged the actions. For minority entrepreneurs who relied on MBDA Business Centers, the alternatives are SBA Small Business Development Centers (SBDCs), SCORE chapters, Women's Business Centers (open to all genders), APEX Accelerators for government contracting assistance, and state-level MWBE programs. Find your nearest free resource at sba.gov/local-assistance.
Private Grants That Are Actually Open
With federal programs contracting, private grants have become more important. These are the programs accepting applications as of February 2026. The Amber Grant from WomensNet awards three $10,000 grants per month (general, startup, and rotating business category) to women who own at least 50 percent of a business in the U.S. or Canada. Three monthly winners receive additional $50,000 year-end awards. The deadline is the last day of each month. The application fee is $15. Apply at ambergrantsforwomen.com. Visa She's Next through IFundWomen provides $10,000 grants plus a one-year coaching membership and mentorship. No credit score requirement. Submit a universal application through IFundWomen; they match you with relevant opportunities on a rolling basis. Since 2020, Visa has funded over 250 grants totaling approximately $3 million. Hello Alice operates as a grant marketplace connecting small businesses with corporate-funded grants on a rolling basis. Current programs include the Small Business Growth Fund ($5,000 to $25,000), Fund Her Future ($100,000 split among six recipients), and partner-specific programs from FedEx, DoorDash, and others. Create a free profile at helloalice.com to receive personalized grant matches. The NAACP Powershift Entrepreneur Grant awards $25,000 to Black entrepreneurs. The cycle typically opens around October each year. The 2025 cycle is closed; watch for the 2026 cycle at naacp.org/find-resources/grants. The Tory Burch Foundation Fellows Program selects approximately 120 women-owned businesses per year for a $5,000 grant plus a one-year fellowship with workshops, consulting, and mentoring. Businesses must be 51 percent or more women-owned and generating at least $75,000 annually. Applications typically open around October. Next cycle expected fall 2026. Comcast RISE awards $5,000 cash grants plus a technology makeover and business consultation to businesses that are 51 percent owned by people of color, have been operating for two or more years, and have 100 or fewer employees. In 2025, 500 grants were awarded across five cities. The 2026 cycle has not been announced; monitor comcastrise.com. The Fearless Fund Strivers Grant ($20,000 to women of color) was permanently shut down in September 2024 as part of a lawsuit settlement alleging race discrimination in grant eligibility. The fund has pivoted to a $200 million debt fund for underserved founders, which is a loan, not a grant.
CDFIs and SBA Microloans: Not Grants But Critical Access to Capital
Community Development Financial Institutions are the primary lending infrastructure for businesses that cannot access traditional bank financing. Over 1,400 certified CDFIs operate nationwide including nonprofit lenders, credit unions, loan funds, and community development banks. They are funded at $324 million for FY2026. CDFIs provide more flexible approval requirements than traditional banks, offer business counseling alongside loans, and specifically target minority-owned, women-owned, and veteran-owned businesses. In 2021, CDFIs held over $25 billion in small business and microloans with a cumulative net charge-off rate below 1 percent. Find a CDFI lender near you through the OFN CDFI Locator or the CDFI Fund. The SBA Microloan Program provides loans up to $50,000 (average approximately $13,000) through SBA-approved nonprofit intermediary lenders. Interest rates range from 8 to 13 percent with a maximum six-year repayment term. The program specifically targets startups, women-owned, and minority-owned businesses. Apply through an intermediary lender found at sba.gov/funding-programs/loans/microloans. The SBA Community Advantage program provides mission-based loans up to $500,000 through over 140 licensed community lenders. In 2025, 502 loans totaling $82.75 million were approved. Note that the SBA paused expansion of new Community Advantage lenders in May 2025. Existing lenders continue operating. These are loans, not grants. But for many minority and women-owned businesses, access to affordable capital through these channels is more impactful than grant programs that receive thousands of applications for a handful of awards.
State Programs That Provide Real Funding
State-level MWBE programs vary significantly but several offer substantial funding or contracting access. New York's Empire State Development administers a 30 percent MWBE participation goal on state contracts. Grants and contracts of $25,000 or more are subject to MWBE requirements. The RISE Program provides $10,000 to $50,000 to qualified applicants. Contact Empire State Development MWBE. California's Dream Fund provides microgrants up to $10,000 for underserved entrepreneurs from approximately $35 million in total program funding. The Small Business Technical Assistance Program has $23 million annually. The SCALE Program has $25.3 million from U.S. Treasury SSBCI for small business capital access. Apply through CalOSBA. Texas offers the StartHER Grant through Texas Woman's University: $5,000 for women-owned businesses with five or fewer employees in business five years or less. Next cycle opens September 1, 2026. The Texas Rural Woman Grant provides 10 grants of $10,000 annually for women-owned rural businesses. Georgia has a $60 million CDFI Program for minority-owned small businesses, a $30 million Venture Capital Program, and a $20 million Equity Direct Program. MWBE Certification Grants of $5,000 cover costs of obtaining MBE, WBE, or DOBE certifications. See georgia.org/minority-small-business-finance. Illinois offers the Advantage Illinois FAME Program with low-interest loans for businesses majority-owned by women, veterans, disabled, or minority entrepreneurs. The Small Business Capital and Infrastructure Grant Program targets socially and economically disadvantaged individuals. See Illinois DCEO. Search your state's economic development agency website for MWBE programs. Most states have some form of certification and contracting preference, even if they do not have direct grant programs.
What to Do Right Now
If you are a woman-owned business, get WOSB certified through MySBA Certifications. The certification is free and unlocks federal set-aside contracts worth billions annually. The program is fully operational and has not been affected by recent policy changes. See our set-asides guide for how to find and win set-aside contracts. Apply to the Amber Grant by the end of this month. At $15, the application cost is negligible relative to the $10,000 monthly awards and $50,000 year-end awards. Create a free Hello Alice profile to receive weekly personalized grant matches from corporate-funded programs. Find your nearest SBDC, SCORE chapter, or Women's Business Center at sba.gov/local-assistance. These provide free consulting, training, and assistance with government contracting, and Congress preserved their funding despite proposed elimination. If you qualify for 8(a), prepare a thorough application with detailed documentation of individual social disadvantage. The bar is higher than it was, but the contracting benefits remain among the most powerful in federal procurement. Get help from an APEX Accelerator (free government contracting assistance) before applying. Check your state's MWBE certification and programs. State procurement set-asides often have less competition than federal programs. Our state contracts guide covers how to find state-level opportunities. For immediate capital needs, contact a CDFI through the OFN locator. CDFIs specifically serve businesses that traditional banks turn away. Search Funding Landscape to find open opportunities including grants, contracts, and set-asides that match your business.