Government Assistance For Small Business Owners

Dont Miss The Opportunity

There are many small business grants out there if youre willing to work for them.

If you want to win them, youll need to take it seriously and beat out the competition. Dont be afraid to apply to smaller ones, because they will often have less competition than the grants for high awards.

I strongly encourage you to also visit local small business associations, and pursue other means of small business financing if you need money urgently.

If you still have any questions about grants, please leave a comment and Ill try to answer them.

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Texas Workforce Training Grants

The Texas Workforce Commission offers the Skills for Small Business grant. This supports businesses with fewer than 100 employees and incentivizes training for new, full-time workers. Support is also available to upgrade the skills of existing full-time workers. Training is provided through community or technical colleges, or the Texas Engineering Extension Service .

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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Grants Vs Loans: Whats The Difference For Entrepreneurs

A loan is funding you must pay back to the creditor who loaned you the money. In contrast, a grant is gifted money you dont need to pay back.

You will have to apply for both grants and loans, but a loan application considers your ability to repay the money while a grant application considers your merit as it applies to the rules of the grant.

Many organizations are working for the economic development of women entrepreneurs.

The following are two popular startup grants for women:

1. Amber Grant

Amber Grant is hugely popular among women entrepreneurs. The Amber Grant Foundation gives at least $10,000 every month in Amber grant money.

2. The Cartier Womens Initiative

The Cartier Womens Initiative offers regional awards and Science & Technology Pioneer Award to women-run businesses.

Eidl Loans And Grants

In addition to the Paycheck Protection Program, the CARES Act provides relief to small businesses through SBAs EIDL program, which traditionally provides operational liquidity to small businesses in disaster areas. EIDL Emergency Advance will provide an immediate advance of up to $10,000 grants to eligible businesses, which will not have to be repaid. These changes are in effect through the end of 2020.

The SBA has resumed accepting new EIDL and EIDL Advance applications.

Things to Know About EIDL Loans and Grants

Program Eligibility

The CARES Act expands eligibility for EIDL to businesses, private nonprofits, and cooperatives with fewer than 500 employees, as well as small businesses currently recognized by SBA. Sole proprietors, independent contractors, and some other self-employed individuals are also eligible. The statute broadly expands EIDLs scope to better account for the COVID-19 outbreak by treating emergency declarations under the Stafford Act as a trigger for EIDL eligibility. During this or a similar crisis, the SBA Administrator can, at their discretion, designate what states or subdivisions have suffered sufficient economic damage to justify small businesses in those areas receiving EIDL loans.

EIDL Emergency Advance

Submitting an Application

EIDL Emergency Advances Money Usage

EIDL and the Paycheck Protection Program

Funds received under the EIDL program would be counted against any forgiveness an applicant receives under the Paycheck Protection Program.

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State And Local Governments

State and local governments want to attract new business to their areas, especially in this COVID economy, and as such have created a variety of incentive, economic, and loan programs and funds intended to do just that.

Example: Portland, Oregon, wanted to attract more startups, so it created the Portland Seed Fund. Begun with a half-million dollars infusion from the general fund, the fund then approached other stakeholders in the city and eventually created a seed startup fund worth over $2 million.

So check out these sorts of programs in your area.

Are There Any Downsides To Business Grants

A variety of factors make many business owners skeptical of the free money that business grants offer. While every grant has a different application period, rules, terms, and conditions, here are some potential downsides you should keep in mind when applying.

As mentioned above, business grant funds are taxable income for IRS purposes. The funds will still be free money for your business, but you will need to make sure you dont spend the entire payout without planning for the added income in your tax bill.

Business grant applications take time. Youre already a time-crunched business owner wearing a million hats, do you really have time to apply for every business grant opportunity you come across? Its a valid complaint about business grants. The likelihood of winning the grant can be small depending on the size of the contest, so you have to make your own cost/benefit analysis to figure out if your most precious asset time is worth it.

Small business grants may require campaigning. Many business grants require a social media component, where you campaign or share something publicly about your grant application. Thats not necessarily a negative if you have an active and vocal social media following, but campaigning does take additional time and some business owners may understandably not want to be as public about their search for money.

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Why Are Government Grants For Small Businesses So Important In 2022 And Beyond

Government grants for small businesses are particularly important for developing a countrys micro, small and medium enterprises sector. Because these grants are funded by tax dollars, they have more restrictions than grants offered by private entities like FedEx and Cartier, as well as foundation grants like WomensNets Amber Grant.

Chief amongst these restrictions is an emphasis on how the money will be used to help the business make a meaningful impact in the community. Grants from the federal government were created to encourage businesses to be community builders and contribute to economic growth. A business that focuses on community development and innovation is sustainable and respected. This is the primary reason government grants for small businesses will remain relevant in 2022 and beyond.

Furthermore, many grant opportunities tend to reward innovation and scientific research. More grants tend to be offered in these categories because they give the country a competitive advantage. After all, it pays to stay ahead of the game.

Find more information on How to Start a Business here.

Financial Assistance For Small Business Owners

en españolPAYCHECK PROTECTION PROGRAMThe U.S. Small Business Administration has reopened the loan application process for the Paycheck Protection Program. Applications will be accepted in several rounds. Beginning today, January 11, community lenders will begin accepting applications for first-time applicants. On Wednesday, January 13, community lenders will begin accepting applications from second-time borrowers.

First Draw PPP Loans can be used to help fund payroll costs, including benefits. Funds can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, and certain supplier costs and expenses for operations.

The application window for forgivable PPP loans will open to all lenders at a later date, which will be announced soon. The closing date for this round of PPP forgivable loans is March 31.

A summary of the program from the U.S. Small Business Administration is available here.

The SBA, in consultation with the Treasury Department, has recently released additional PPP guidance:

For more information and updates, visit SBA.gov/PPP or Treasury.gov/CARES.

ECONOMIC INJURY DISASTER LOANS AND LOAN ADVANCETo apply for a COVID-19 Economic Injury Disaster Loan, click here.

In response to the Coronavirus pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000.

SMALL BUSINESS-RELATED GRANTS

MORE INFORMATION

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Find The Best Loan For Your Needs

Now you know the basics of loans and grants for people who are on disability. The good news is, there are many programs in place, from those that help you customize your vehicle to those that help you buy a home. You can not only survive financially, but thrive.

When choosing a loan, be sure to shop around with at least three lenders per loan type. The rates and terms can vary greatly from one to the next. Just because one company offers you a rate doesnt mean its all you can get. And even if one denies you, it doesnt mean others will.

Many lenders offer programs, like the Fannie Mae Community HomeChoice Program, which are specifically designed to help applicants on disability. And others may have more lenient eligibility standards.

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The Government Can Give Them Access To Capital

Banks are often reluctant to lend money to small business owners because they are too risky for loans. Hence, most small businesses rely on personal savings when they need capital for expansion or equipment purchases. The Small Business Administration helps fill their financing gap by guaranteeing loans up to $5 million from participating lenders with variable interest rates through Lender Match.

Another program in 1958 was the Small Business Investment Company, where the SBA licensed and provided funds for privately owned investment firms through its Investment Division. These institutions specialize in providing long-term debt and equity investments for high-risk small businesses.

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Government Grants For Small Businesses

Government grants are a desirable source of funding for many small businesses. Well-known sources for government grants include agencies like Grants.gov, Challenge.gov, the U.S. Small Business Administration , and the U.S. Economic Development Administration , but small businesses should look to every tier of the government to find the best grant for their business.

If this is a funding option you are considering, check out these government grants for small businesses.

Navs Quarterly $10000 Business Grant

Each quarter, Navâa financing marketplace for businessesâawards a $10,000 grant to a small business .

You donât need to meet any special criteria to apply. You just need to sign up for a free Nav account and post on social media about what your business plans to do with the grant.

You can learn more here.

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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.

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Small Business Lending Fund

The Small Business Lending Fund provided capital to qualified community banks and community development loan funds to encourage these institutions and Main Street businesses to work together to promote economic growth and create new jobs. Through the SBLF program, Treasury invested over $4.0 billion in 332 institutions, structured to incentivize increased small business lending.

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The Mbda Grant Application In 5 Easy Steps

Loans

Let MBDA help you better position your company.

Other Government Funding Options For Your Business

These federal and state programs can also help finance your business:

• 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.
• 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.
• 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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Federal Support For Small Business Owners And Independent Contractors Impacted By Covid

The COVID-19 pandemic is having a serious impact on the American economy. With recent actions taken by the federal and state governments, ASHA members who own small businesses, private practices, or operate as independent contractors may now qualify for emergency resources. We will update the following information as new developments emerge.

Find information below about

Note: The following information should not be considered financial or legal advice.

Small Business Innovation Research Program

This government grant is awarded to businesses making strides in technology innovation. Funds are provided for research and development with additional support being given for the commercialization of the technology or service created.

The grant began in 1982 as a part of the Small Business Innovation Development Act and has provided funding for a variety of companies in the defense, environment and healthcare industries. Funds are obtained from the Federal Research and Development Project. Any small business that is awarded this grant must complete the three phases of the program to receive the full grant award.

• Phase I The budgetary allocation for this phase does not usually exceed $150,000. The Federal Research and Development team determines whether your project is truly viable.
• Phase II The results of Phase I determine the funding requirements for this phase. Funding usually does not exceed $1,000,000 and is dispersed over a two- year period.
• Phase III This is a non-funded phase where the product is commercialized. Other government agencies associated with the project may be the main consumers.

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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

Good For: Community Businesses

The Caleb Brown Venture Capital and Consulting Project hosts a $1,000 grant aimed at promoting and nurturing young urban entrepreneurs with vision who plan to rebuild local blocks, neighborhoods, and communities by providing training and jobs to the next generation. The grant is open to startups and young businesses in urban areas. This contest is run every monthsubmit your application by the 15th to enter.

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Alternatives To Small Business Grants

If you dont have the patience to apply for a small business grant and wait to see if youve been awarded it, look to other options to get the financing you need.

There are plenty of small business loans available, no matter what your credit profile. If your business is established and you have excellent credit, you might qualify for a bank or SBA loan with lower interest rates. If you want access to some cash now and more later, look for a line of credit.

If youre working to build your credit, you may be able to get a merchant cash advance or invoice financing. And if youre just looking for a way to purchase what your business needs, there are plenty of small business credit cards available to you.

This article was originally written on November 19, 2019 and updated on June 13, 2022.

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.

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