Working capital – the financial life force of any small enterprise. Sure, small business loans are plenty, but they often tie you down with debt and interest expenses, not to mention the potential dire outcomes when unable to keep up with repayments.
Small Business Grants: How to Get Free Funding for Your Business
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Have you considered grants? These are gifts, essentially “free money” that you usually don’t have to repay, and there’s no interest expense involved. Granted, loan programs are more abundant and readily accessible, while grants may demand more research, time, and effort. But think of it this way: getting a grant is like striking gold in your business venture. Raising capital through selling stock or bringing in a partner involves sacrificing equity – that’s not entirely free, is it?
Although it might be tougher to secure a grant compared to a loan, the rewards certainly make it worth trying. The Small Business Administration (SBA) is well-known for its numerous small business loan programs, but surprisingly, they do not offer grants. Don’t fret; there are plenty of small business grant programs as you’ll see below.
The Federal Route for Small Business Grants
Sure, the SBA doesn’t offer grants to small businesses, but there are other Federal avenues for such grants.
Grants.gov:
Your one-stop-shop for a comprehensive database of federal government small business grants managed by various departments such as Energy, Health, Education, and Veterans Affairs. This is your golden gateway to grant hunting.
Tech Innovation and Scientific Research grants:
The Small Business Innovation Research and Small Business Technology Transfer programs are the bridges connecting small businesses to federal grants and contracts from 11 government agencies.
Rural Business Development Grant Program:
Orchestrated by the USDA, this program is aimed at bolstering small businesses in rural communities. To qualify, businesses must have fewer than 50 employees, less than $1 million in gross revenue, and be located in an eligible rural area.
State and Regional Grant Givers
Economic Development Administration:
Run by the U.S. Department of Commerce, this program supports local communities in fostering economic growth and entrepreneurship. Each state’s EDA agency aids businesses in finding financing (including state or regional grants), securing locations, and hiring employees.
Small Business Development Centers:
Available in most cities across the nation, SBDCs can link you with small business grants, financing opportunities, and offer counseling, training, and technical assistance.
Minority Business Development Agency:
MBDA’s nationwide network of local agencies is dedicated to nurturing and promoting minority-owned small businesses. Each center can assist you in applying for federal, state, and local business grants. Moreover, the agency typically hosts an annual small-business grant competition.
Big Corporate Samaritans: Small Business Grants Funded By Large Corporations
Several big companies offer a helping hand to small businesses via grant programs. Some noteworthy ones include:
FedEx Small Business Grant Contest:
This renowned company hosts an annual grant competition. It bestows over $250,000 to 10 small businesses, with three grand prize winners bagging a $50,000 grant and $4,000 in FedEx print and business services.
National Association for the Self-Employed:
Members of this organization can vie for monthly small-business grants worth up to $4,000, awarded year-round, with applications reviewed quarterly.
Fast Break for Small Business:
Administered by Accion Opportunity Fund, this program offers $10,000 grants focusing on businesses in underserved and underrepresented communities.
Seeds of Success: New Business and Start-Up Grants
While established businesses find it easier to secure grant financing, there are programs catering to newer ventures:
U.S. Chamber of Commerce:
Their annual Dream Big Awards acknowledges a small business for its contributions to the U.S. economy, awarding a $25,000 grant.
Hello Alice Grant Platform:
Partnering with various companies, Hello Alice offers different grants for small businesses – including startups.
Amber Grant for Women:
Operated by WomensNet, this program offers a $10,000 monthly Amber Grant and additional grants on an annual basis for startups and existing women-owned businesses.
