Alternatives To Business Grants
Business grants may not always be available or suitable for your business. But the good news is that there are alternatives to business grants out there, such as:
Equity finance This is when you sell a share of your business in return for finance. Some equity finance schemes, such as the Seed Enterprise Investment Scheme, offer up to a 50% reduction in income tax on investments made in new businesses up to £100,000. Businesses have to be less than two years old and have fewer than 25 employees.
Soft loan These are similar to grants, but are actually loans with lower interest rates and more generous terms than can be found via other lending routes. Backed by the government, the Start Up Loans scheme offers personal loans of up to £25,000 with a 6% interest rate and access to free business support and mentoring.
Jack Daniels Pitch Distilled
Jack Daniels hosts an annual pitch competition with the goal of inspiring entrepreneurs to surface the next big idea. Small business startups can apply and if accepted, theyll pitch their ideas at the Pitch Distilled event to a group of business owners. The winner of this pitch contest will win a $5,000 prize, plus advice and guidance from the panel of judges to help make their idea a reality.
Government Grants For Small Business
This guide gives an overview of a range of small business grants, both from the government and other organisations across the UK.
You can jump straight to the government grants by following these links or keep reading for the full list of grants available for small business:
Recommended Reading: 8774182573
Grants Loans And Programs To Benefit Your Small Business
When you know where to look, help for your small business is there for the taking.
There are many grant programs available to small businesses, depending on a variety of qualifying factors.
Times are tough for small business, but help is available, from both the governmentfederal, state or localand the private sector. It may be in the form of a grant, a loan or a leg up competing in a difficult business environment. Heres a breakdown to help you sort through whats available.
How To Qualify For A Small Business Grant
Eligibility requirements vary based on the type of grant youre applying for. A grantor may require that your business operates in a specific industry, fits its definition of a small business and meets a minimum annual revenue threshold.
Before you apply for a small business grant, review the requirements carefully to ensure you have the best chances of qualifying.
Don’t Miss: City Of Las Vegas Job Openings
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.
What Is The Easiest Business To Start With No Money
Also Check: Grants For Dental Implants
Corporate Small Business Grant Options
Many organizations provide funding to small businesses in the form of grants. For example, the National Association for the Self-Employed awards one $4,000 grant every month to active members. Only members are eligible to receive these grants based on a needs assessment by the organization.
The credit card company, Visa, also offers grant money for small businesses, called the Visa Everywhere Initiative. The initiative provides funding to small business owners presenting innovative ways to solve payment issues. If you run a technology company that deals with payments, this could be a good funding challenge to explore.
How To Get Grants For A Small Business
Research, research, research! There are tons of grants out there for the asking, but you need to do your research. Most grants have very stringent requirements that must be met . If you do your research, you will find a number of grants up for grabs. However, you must make sure your small business meets their oftentimes strict eligibility requirements.
One thing to note is that tech companies have a slight advantage when it comes to grants. States and the federal government offer grants through the federal governmentâs Small Business Innovation Research and also through the Small Business Technology Transfer programs. For more information on either of these two programs, visit www.sbir.gov or www.sba.gov. Also, businesses that are issued government grants are often asked to repay the government in other ways other than with money. For instance, if the company is doing research and development, the government may require that findings from any research using grant money be made available for use by local, state or federal government authorities.
Read Also: Jobs Hiring In Los Lunas
How Do I Get Free Money To Start A Business
Small business financing is tough. So, there is no surprise that 39% of small businesses use cash to finance their ventures.
When youve just started, securing a loan for your business is an uphill battle, even if you are looking at franchises under 10K. Even if you get a loan, it is often difficult to pay it back initially when your business is not making a decent profit.
Therefore, it is a better idea to look for small business grant money than apply for business loans.
Government grants, general small business grants, industry-specific grants, and diversity small business grants are some popular ways to get free grant money for small business.
Why Are Government Grants For Small Businesses So Important In 2021 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 2021 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.
Don’t Miss: Government Jobs In Las Vegas
Write And Submit A Grant Proposal
Various government small business grants exist that provide funding for a wide range of problems. Some of these government small business grants are discussed later in this article. Each grant has specific requirements you should ensure that your business can meet these requirements before investing time and money into creating a grant proposal. It often works best to hire a grant proposal writer because writing a grant proposal is a time-consuming and detailed process.
Good For: R& d Companies
The DoD offers grants to small businesses through the STTR program and a number of other initiatives, like the Defense Enterprise Science Initiative. The Office of Naval Research, the Air Force Office, and the U.S. Army Research Institute are all looking for research and development of technology that will help them reach their goals.
Don’t Miss: Dental Grants For Low Income Adults
Check For State Grants
Another excellent place to search for grants is within your own state. Washington DC’s Department of Small and Local Business has a Northeasterly, Deanwood Cultural Arts Activation Grant for up to $60,000 to utilize indoor or outdoor commercial spaces in the Deanwood neighborhood, while the Arizona Commerce Authority offers the AZ Step Program for small businesses that are interested in entering export markets for the first time.
Kansas has a Job Creation Program Fund for companies that want to get started in the state and Maryland encourages quality care and education within child care centers with its Child Care Quality Incentive Grant Program.
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.
Also Check: Charitable Auto Resources Seattle
The 2022 Small Business Support Program
This new program will help businesses survive the immediate impact of the Omicron wave.
Eligible businesses with a turnover of between $75,000 and $50 million that experienced a minimum 40% decline in turnover in January 2022 and the first fortnight of February 2022 can apply for support through this program.
Employing businesses will be eligible to receive 20% of weekly payroll as a lump sum for the month of February, with a minimum payment of $750 per week and a maximum payment of $5000 per week.
Non-employing businesses will receive $500 per week, paid as a lump sum of $2000.
The 2022 Small Business Support Program is for the month of February only.
Most customers submitting complete and eligible applications through Service NSW should receive payment within 5 to 10 days of approval.
Payment timeframes can sometimes be extended if applications are:
- require additional verification
- potential fraudulent behaviour is identified.
Customers will be contacted by Service NSW and asked to provide any additional information they need to finalise their application.
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.
This article was originally written on November 19, 2019 and updated on November 9, 2021.
You May Like: Full Time Jobs In Warner Robins Ga
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.
What Is A Small Business Grant
A small business grant is a sum of money awarded to a small business owner or organization. Several entities, including the federal government, state and local governments and private corporations provide funds for small businesses in specific industries that meet certain eligibility requirements.
Unlike a business credit card or loan, small business grants dont require repayment. Although grants are considered free money, an organization or individual typically has to spend a lot of time and effort researching available grants and writing grant proposals.
In addition, some small business grants come with specific guidelines on how you can use the funds. Failing to adhere to the rules may result in repaying some or all of the money you receive.
Recommended Reading: Government Grants For Auto Repair Shops
Us Economic Development Administration
The EDA is mandated to foster economic development in all US communities. Grant money is part of the solution and can be viewed on the EDA website, which is constantly being updated to reflect recent funding opportunities. For example, the most recent funding opportunity listed is the Fiscal Year 2020 Public Works and Economic Adjustment Assistance Programs. This grant provides $587 million in funding opportunities for small businesses affected by natural disasters in 2018. Clicking the link redirects you to the Grants.gov website, where you can view details about the grant.
Louisiana Community Development Block Grant
The Office of Community Development aims to improve the living environments and economic opportunities for Louisianaâs low-income residents. Although small businesses canât apply directly, you can contact the state or local government branches that are most relevant to your businessâs function and see if you can receive funding to do community work. There are also disaster recovery grants that are issued to businesses affected by hurricanes.
Read Also: Mortgage Stimulus Program Middle Class
Small Business Grants At The State And Regional Level
State and regional governments can provide grant money to help spur business development. However, this money can be difficult to obtain. Plus, when funds are available, it requires businesses to meet the objectives or mission of the government initiatives. These initiatives are often for specific tasks that a government agency wishes to achieve.
The SBA provides some grant money, but usually to other funding organizations that are responsible for finding projects to fund. One recent example is when the SBA provided money to the Entrepreneur Fund. This organization is an approved SBA lender but has been tasked with providing capital to disadvantaged entrepreneurs in distressed areas.
The government also has initiatives to help promote exporters, called the State Trade Expansion Program . It has limited availability and is specific to certain states. However, theres a division within the program, called the Office of International Trade. This program helps with exporting on a national level.
Small business owners can research programs available at the state level by referencing the United States Economic Development Administration.
Grants For Taking On An Apprentice
You can get financial help from the government to train an apprentice in your small business.
If your pay bill is less than £3 million a year, you wont pay the apprenticeship levy. This means you get five per cent towards the cost of training and assessment for your apprentice, if the apprenticeship started on or after 1 April 2019.
The government pays their 95 per cent share directly to the training organisation. You also pay your share directly, according to a payment schedule you agree with the training organisation.
You may also be able to benefit from a cash incentive for hiring apprentices. Applications close on 15 May 2022 and your apprentice must have started between 1 October 2021 and 31 January 2022 for you to be eligible for the payment.
Use the governments enquiry form to ask the National Apprenticeship Service about the funding available.
Read Also: Cash Grants For Single Moms
Dos And Donts Of Winning Business Grants
Lets start with some basic dos and donts of trying to win grants.
- Make a schedule Many grants are only open to applications once a year. Schedule time to put together an application ahead of time.
- Write a business plan first Most grants ask for a business plan. More importantly, you should know how exactly the grant money will help your business. Heres our guide to writing a simple business plan.
- See what companies have been funded in the past This can help you determine which grants you have a good chance of winning. If they funded similar types of businesses, thats a good sign.
- Get help from local business organizations I went through many types of local business organizations that provide assistance to small business owners. This includes helping you find grant opportunities and presenting your business in the best light.
- Consider professional help If you come across a grant that requires a well-written cover letter or essay, consider hiring a professional freelance grant writer if you can afford it.