If you’re starting a business, one of your biggest concerns is how to secure funding for your new venture. Even if you’re confident that funding sources like small business loans, crowdfunding, or investors may provide the venture capital you need, there’s an extra option. It is worth your time to look into business grants, especially when getting started. After all, grants are “free money” that you don’t have to pay back.
Getting a grant isn’t like winning the lottery. Read on to learn more about the ins and outs of small business grants, how to find one that’s right for you, and how to start applying.
Small business grants are money made available to new businesses by various organizations or government entities. The intention of this free money is to encourage entrepreneurship and economic development that benefits society by creating jobs, encouraging market competition, providing needed services to certain populations, or spark technological development.
Grant money presents a significant opportunity for small business owners, and can make it much easier to get a new business off the ground without owing money to lenders or incurring significant credit card debt. However, it’s important to keep in mind that while money is awarded to you if you qualify, it may come with rules that dictate how you can spend it. If you break those rules, you might have to give it back or face legal action.
If you have a new business idea that you’re ready to act on, checking out grant opportunities to help with cash flow is a good place to start. In general, startup or small business grants are easiest to qualify for if your business is a nonprofit organization or is launching a project that focuses on:
Additional categories for which grants may be available include:
Qualifying for small business grant programs isn’t always straightforward. It’s important to note that different grant opportunities may have different eligibility requirements, such as requiring specific types of business activities or United States citizenship. Make sure you read the criteria for each grant carefully.
New and existing businesses may be competing for these grants, and business owners often seek the help of grant writers to prepare their applications to increase their chances. The following list of grants is only a sample of available funding opportunities from government agencies and other sources.
The SBA is a government agency that provides support for entrepreneurship and small business development to strengthen the economy. The general requirements for SBA grants can be found on the SBA.gov website, which includes details of required accounting procedures, audit requirements, and more.
SBA-associated award programs include the following:
If your business will be engaged in research and development activities, you may wish to seek grants for that purpose. A few organizations that offer such grants are as follows:
If your business will export to foreign markets, there are grants for this purpose. Among these are the following:
In addition, the SBA has a page dedicated to funding resources for small businesses affected by the COVID-19 pandemic.
The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs are designed to encourage small businesses to engage in federal research and development with the potential for commercialization. The programs’ goals include stimulating technological innovation, supporting federal research and development needs, and encouraging entrepreneurship by women and the socially or economically disadvantaged.
To qualify, your business must meet program eligibility requirements, which include:
While SBIR and STTR have similar goals, STTR programs additionally focus on technology transfer between small businesses and research institutions. To learn more about these opportunities, visit SBIR.gov.
The U.S. Chamber of Commerce has been around for over a century with the goal of representing the interests of businesses large and small. The Chamber of Commerce represents the interest of businesses in Washington, across the country, and around the globe.
The Save Small Business Initiative was launched as a result of economic struggles related to the COVID-19 pandemic and is designed to help small businesses keep their workers employed and businesses running. Multiple funding opportunities exist through this program and can be found on their website.
They also offer a coronavirus small business resources guide to help with everything from adhering to local COVID-19 restrictions and adjusting budget and finances to save money to boosting your online presence and negotiating with creditors.
The Grants.gov program was launched by the federal government in 2002 to create a centralized location where those looking for federal grants could search for grants to apply to. The Grants.gov website has information on over 1,000 grant programs.
Using their website makes it easy to search and apply for federal grants through electronic application processes. You can easily search listings by specifying your search criteria to create a short list. Signing up for an account on Grants.gov is straightforward. Just enter your name and contact information, including an email address, create a username and password, and select whether to subscribe to communications. Once you have an account, applying is easy, and many of the forms used by the grantors are similar.
In addition, Grants.gov contains multiple educational resources to help you learn more about grant programs and eligibility and how to spot grant fraud. You’ll also find details about grant life cycles, general policies, grant-making agencies, and so on. There is even a get started checklist to help you stay on track.
The grants listed above are only some of what’s available. Many more opportunities exist if you know where to look. Ask around and consult with other small business owners to see what worked for them or how they were able to get funded.
Some additional grant sources include, but are not limited to, the following:
The grant application process may seem overwhelming, especially if this is your first time applying. Make sure before applying that you have established your business or have a clear business plan in place. This will help narrow your focus as to which grants you might qualify for and allow you to describe your goals more clearly when applying.
Some tips that might help increase your chances of approval include the following:
Finding ways to fund your startup is just one of many details to sort through as you get your small business off the ground. It’s important to seek all the help you can. ZenBusiness is here to help support you as you pursue your dream, with informative articles and worry-free services, such as filing options, business plan formation, and domain name registration. Check out our available products and pricing today to get started.