The Different Types Of Small Business Grants
There are two main types of grants: government and private.
To find federal and state grants, you can browse government databases based on your location and industry. But these are often paid services that are poorly organized and outdated.
Corporations provide grants to small businesses as well. These private grants usually have less rigorous application requirements, but more competition for funds.
You can also apply for a foundation grant. This is another kind of private grant, but instead of a corporation, youâll receive grant money from a charitable foundation.
Unfortunately, the internet hasnât invented a one-stop database where you can search for every kind of grant. So weâve compiled a list of the top government and private grant databases, complete with quick navigation links.
Targeted Economic Injury Disaster Loan Advance Grant
Certain small business owners applying for an Economic Injury Disaster Loan through the SBA are eligible for an emergency cash advance of up to $10,000. This advance can be forgiven by the SBA if you spend it on maintaining payroll, paid leave, increased costs, mortgage or lease payments, or other financial obligations.
Targeted EIDL funds are available to businesses in low-income communities that can demonstrate a more than 30% reduction of revenue during an eight-week period since March 2, 2020. Your business must have previously received an EIDL Advance for less than $10,000 to be eligible, or previously applied for an EIDL Advance but did not receive one due to a lack of program funding. The original EIDL Advance program, authorized as part of the CARES Act, is no longer active.
No action is required to qualify for a Targeted EIDL grant. The SBA will reach out to eligible businesses. If you receive an email about an SBA grant, make sure it arrives from an address ending in @sba.gov to avoid a potential business loan scam.
Funding For Small Business Development
In a bid to grow entrepreneurship in South Africa, a number of government funding platforms are available to qualifying enterprises and individuals.
Between June 2015 and May 2016, the Department of Small Business Development trained 1 037 informal traders, established 29 satellite offices and five centres of business excellence.
The departments mandate is the promotion and development of sustainable and competitive entrepreneurs, small businesses and co-operatives that contribute to job creation and economic growth.
As long as your business or co-operative meets the criteria, you can access funding or grants through the DSBD or one of its agencies. Bear in mind, public sector funding involves a thorough and careful process, so be patient and plan for longer timelines.
SEFA
Established in 2012, the Small Enterprise Finance Agency helps start-ups and small businesses. They will either fund grants or loans or help entrepreneurs access funding from other sources. SEFA services are designed to help micro, small and medium-sized business enterprises. Co-operatives and survivalist enterprises that need help to grow are especially encouraged to seek assistance.
Loans from SEFA can range from as little as R500 up to R3 million, with the loans paid directly to owners. This direct payment is important in a business sector that is often not part of the traditional banking system.
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Orlando Downtown Commercial And Residential Building Improvement Program
This Orlando program provides business grants between $15,000 and $120,000 for organizations that make improvements to buildings within the downtown Orlando Community Redevelopment Agency boundaries. This program encourages the reuse of vacant or underutilized properties and hopes to improve the appearance and support the long-term viability of downtown Orlando.
Shuttered Venue Operators Grants
The Shuttered Venue Operator Grant program has closed, but the SBA says that it will open the program for supplemental SVOGs for 50% of the original award amount, capped at a total of $10 million.
Those eligible businesses include:
- Live performing arts organization operators
- Relevant museum operators, zoos and aquariums who meet specific criteria
- Motion picture theater operators, or
- Talent representatives
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Small Business Grants: Free Money For Your Business
As a small business owner, you likely are always looking for money to grow your business, and when something like a global pandemic hits, that need only increases.
Whether youre looking for grants to help you weather the rest of the COVID-19 pandemic and its aftermath or are just looking for a small business grant to take your company to the next level, youll find many options here.
Idaho State Trade Expansion Program Grant
Many states actually have a STEP program, Idaho included. However, they each have individual application processes and qualification criteria, so youll want to make sure you double-check what you need to do to apply. In Idaho, these government grants are primarily for small businesses that want to enter international markets.
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Need Help Finding Canadian Government Funding
Are you uncertain of your eligibility for any of the Canadian government funding programs listed above? The majority of government grants for small businesses are reserved for established SMEs . If you are established, please send us a message or register for an upcoming small business funding event. From here, we can further evaluate your eligibility for specific Canadian government funding programs and help you choose the funds most optimal for your business growth plans.
Ben Franklin Technology Partners
Ben Franklin Technology Partners has been investing in startups in central and northern Pennsylvania for more than 30 years. Tech startups can potentially receive up to four yearly infusions of cash totaling around $500,000. Small manufacturers may be eligible for a one-time investment of up to $250,000. To learn more about eligibility, check out their website.
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Small Business Grants For Specific Demographics
Small business grants arent readily available to people wishing to start businesses. However, there are demographics that the government may want to promote and offer helpful resources for their businesses. Three of the largest groups are veterans, women, and minorities. Learn more about each of these subsets in the following sections:
State And Regional Small
Economic Development Administration: This U.S. Department of Commerce agency provides grants, resources and technical assistance to communities to support economic growth and encourage entrepreneurship and innovation.
Each states agency helps businesses find financing , secure locations and recruit employees. You can search for regional offices and local resources at the EDAs website.
Small Business Development Centers: Your local SBDC provides support for small businesses and aspiring entrepreneurs. Theyre often associated with local universities or the states economic development agency, and many can help connect business owners with financing opportunities, as well as mentors and networking opportunities and training on basic business skills.
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Rural Energy For America Program
This grant program, run by the Department of Agriculture, centers on small businesses in eligible rural areas looking to purchase, construct, or install renewable energy systems or energy efficiency improvement technologies. You can partner one of these federal business grants with a USDA loan guaranty as well, and together theyâll back up to 75% of your eligible project costs.
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Where To Find Business Grants
Below is a list of some of the most robust resources for finding grants that can aid your business:
- SBA.gov is one of the top places to search for grants. The government site is filled with various grant and financing opportunities.
- Grants.gov is the ultimate database for federal grants. You can search for grants by funding type, eligibility, category and agency. Be forewarned: Sorting through the database will require some effort, but the potential payoff is that you may find a grant opportunity that is perfect for your company.
- The Economic Development Administration administers grants for economically depressed communities to stimulate new jobs and commercial growth.
- Similarly, Small Business Development Centers offer local resources that can help your business.
In the wake of the coronavirus, there are resources, including federal and private funding sources, that are helping businesses cope with the drastic economic contraction that is affecting the world.
- Economic Injury Disaster Loans are administered by the SBA and can provide businesses with working capital to pay employees, rent and other expenses.
- In addition to government loans, companies like Verizon have created funds that provide grants to small businesses.
Other Government Funding Options For Your Business
These federal and state programs can also help finance your business:
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Small Business Investment Company Program – The SBA partners with private investment funds licensed as SBICs to provide growth capital to small businesses. Find out if SBIC financing is right for your business.
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Small Business Innovation Research and Small Business Technology Transfer Programs – The SBIR/STTR programs are competitive and awards-based. They encourage small businesses to pursue federal research or research and development projects. While exploring their technological potential, businesses can profit from commercialization. Learn how to apply.
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State and Local Business Assistance – Find out about state and local business financial assistance where you live. This includes financing for business expansion, state credit initiatives, and more.
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What Are Small Business Grants
A small business grant is a predetermined sum of money that government agencies and/or private entities give to small businesses. It can loosely be called free money. Its important to note, however, that nothing in life is truly free. Small business grants are filled with caveats that specify how the money should be spent. Additionally, a lot of work goes into creating grant proposals and meeting the requirements for winning the grant.
Gofundme Small Business Relief Fund
Crowdfunding company GoFundMe has partnered with partners to provide a COVID-19 relief fund for small businesses. Your business may receive a matching grant when you raise $500 through your own GoFundMe campaign, as long as you can verify that your business has been negatively impacted by the coronavirus. Funds must be used to pay business expenses or care for employees.
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Grants For Business Owners Affected By The Covid
Due to the COVID-19 pandemic, many business owners required financial assistance to keep their doors open. Currently, many of these federal government grant programs are no longer accepting applicants. However, some programs may reopen, depending on future conditions.
For example, the Shuttered Venue Operator Grant provided over $16 billion in grant money to shuttered venues. As of August 20th, the SBA is no longer accepting applications.
How Do You Qualify For A Small Business Grant
When you read about qualifying for a small business grant, most people are talking about eligibility.
Each individual grant specifies which businesses are eligible to win it. Anyone can apply for a grant, but if you dont meet the eligibility criteria, you have zero chance to get it.
Of the grants listed on this page, almost every small business can apply for the grants in the government and corporate grant sections.
If youre a woman, you have several grant opportunities on top of that.
The majority of the rest of the grants I included here are for a specific type of business, so youll need to look at them individually and see if your small business is eligible.
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Federal Business Grants For Small Business
Although there are plenty of federal business grants for small businesses, they are primarily open to companies in the science, technology, or health fields. If your business is involved in research and development or in scientific initiativesâincluding environmental and climate initiativesâthen federal grant programs might be able to cover some of your expenses and help with your small business funding.
Here are the top federal business grants for small business:
No Federal Grants For Businesses
The federal government does not offer grants for starting or growing a business. It only provides grants for nonprofit and educational institutions. These organizations focus mainly on medicine, technology development, and other related fields. Find out more about federal grants.
Some state and local programs offer business grants. They usually require you to match the funds. Or, they may expect you to combine the grant with other forms of financing, such as a loan.
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Who Can Get A Grant
The federal government awards grants to organizations including:
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State and local governments
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Non-profit organizations
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Businesses
The intent of most grants is to fund projects that will benefit specific parts of the population or the community as a whole. What you might see about grants online or in the media may not be true. The federal government does not offer grants or free money to individuals to start a business or cover personal expenses. For personal financial assistance, the government offers federal benefit programs. These programs help individuals and families become financially self-sufficient or lower their expenses.
How To Apply For A Small Business Grant
Work smart AND hard. Instead of filling out an individual grant application, do what every job applicant does and create a resume for your business that outlines your answers to the common questions business grant-givers ask of their applicants. While grants are technically free money, that doesnt mean they come without hard work on your part.
Some applications will vary based on whats required. For example, a local government grant will likely require an explanation of how your businesss growth and development will benefit local commerce directly, while a grant from a private company like FedEx may require a persuasive video.
Here are a few common details you may need to provide when applying for a business grant:
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State Government Grants For Small Business
State-level small business grants are generally geared toward that particular stateâs social or economic concerns. Theyâre meant to work in tandem with federal or other state grants, so youâll usually get less funding. That said, theyâre much more accessible due to lower competition. Also, many are matching grants: Instead of just providing the funds for you to use for a certain purpose, some will require that you match the money they give as well.
You can search for business grants in your own state and industry by looking at your states department of commerce website or grants portal. Below, we list some popular state grant programs and resources.
Also, an important note: While weâre listing state-specific government grants for small businesses, many of these run across multiple states, so donât give up if the grant looks right but your states donât match.
Us Department Of Agriculture Grants
USDA grants focus on agricultural development in rural areas. Some of the government grants offered include:
- Rural Economic Development Loan & Grant Program
- Rural Energy for America Program Renewable Energy Systems & Energy Efficiency Improvement Guaranteed Loans & Grants
- Rural Microentrepreneur Assistance Program
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Local Small Business Grants
In addition to statewide government grants, cities, towns, and nonprofits finance their own small business grant programs. Continuing the trend, these usually carry smaller payloads but less competition. For local small business grants, youâve got a substantial upper hand if you serve your community in a tangible and demonstrable way.
Plus, is your small business aimed at promoting health, environmental consciousness, or similar initiatives? If so, youâll be looking at even more local grants to apply forâand get funding for your eco-friendly business. Because local small business grants are so geographically specific, weâve pulled just a few to show you what kinds of opportunities may exist in your nearby city or town. Again, make sure to look for similar programs in your own locality.
Small Business Development Centers
Once youve exhausted your searches for grants from federal agencies, the next stop on your list should be local and state business grants. You may be able to hit paydirt and find some of these on your own, but theres a free, local resource that may help.
Small Business Development Centers are a business owners best friend. Local, regional, state, and national offices mentor small business owners and help them understand business financing options, craft marketing strategies, and connect to other local business owners .
One thing they can help with is navigating the grant process. Very few people have as much visibility as SBDC advisors do on the local business grant scene. Its the one appointment you cant afford not to make when searching for small business grants.
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