By Debbie Gregory.
If you are looking to start a business, the odds are good that you will be looking for financing to get it off the ground. You can always apply for a loan or you can use your own personal credit cards or savings to fund your new business. However, if you do not want to deal with debt, or you need to conserve your cash for another reason, you may want to consider applying for a grant.
There are quite a few small business grants out there offered by the government or nonprofit programs that you won’t be required to repay in the future. If your small business meets the criteria, you can apply and may receive the funding that you need.
Most grants are for specific business purposes or roles, so it is very important to understand the specifics of any small business grant you apply for. Do your research and become intimately involved with understanding the process and rules.
Is my business eligible for a small business grant?
Eligibility depends on quite a few factors, such as:
- Your business owner category
- The type of business you plan to open
- The type of grant you are looking to apply for
- The granting agency itself
- The location of your business
- More
For example, grants are set aside specifically for those with certain statuses, such as:
- A US veteran
- A woman
- A minority business owner
- Green businesses
- A Native American
- A person who identifies as LGBT
- Small nonprofit organizations
- More
If you or your business falls into a special category, it may increase your grant eligibility.
What Government grants are available for small businesses?
There are several places you can check for small business grants awarded by the federal government. The most well-known is the Small Business Administration (SBA), which is typically known for small business loans. Though they also offer grants directly and in partnership with other organizations. Visit the SBA’s website for more information and eligibility requirements.
Other federal government agencies and state and local agencies to check include:
- gov : This site gives a good overview of grants available, how to qualify and how to apply.
- SBIR and STTR grants : “Small Business Innovation Research” (SBIR) and “Small Business Technology Transfer” (STTR) grants are for entrepreneurs focused on developing technology for consumer use.
- National Institutes of Health (NIH) grants: They provide grants to small businesses in biomedical technology research and development fields.
- USDA Rural Development Business Grants (RDBG) grants: They offer technical assistance grants to small rural businesses and cooperatives.
What other grants are available?
There are plenty of non-government grants out there for small business owners for startup or certain types of business development. Here are a few to consider:
- org: This site shares a wealth of accredited grant fund resources.
- Visa Everywhere Initiative : This is an annual contest sponsored by Visa which awards up to 150,000 in prizes and global recognition.
- FedEx Small Business Grant Contest : This contest is open to for-profit businesses that have been in business at least 6-months and have fewer than 99 employees. The award is up to $25,000 that the business can use for print and other business services.
- Patagonia Corporate Grant Program : This program is for innovative nonprofit organizations, in specific geographic locations, who work to preserve the environment. The program awards between $20,000 and $30,000.
We invite you to stay tuned for Part 2 of this mini-series on Small Business Grants. In Part 2, we will review the application process and more.
VAMBOA, the Veterans and Military Business Owners Association, hopes that you have enjoyed these articles addressing Small Business Grants We work very hard to bring our audience timely and valuable information.
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