Small businesses can secure funding through grants, loans, and corporate programs without repayment. Federal, state, and private organizations offer financial assistance for various industries and needs.
By Brad Nakase, Attorney
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Startups and existing enterprises, particularly those affected by the COVID pandemic or other problems, can apply for small-business awards, which offer free funding. Grants, in contrast to small-business loans, provide access to funds that are not subject to repayment. Searching for and applying for grants may be a time-consuming and laborious process, but the rewards for your small business could be well worth it. Here is a rundown of several small company grants and tools that are available at the federal, state, and private levels to get you started.
From child care centers to organizations dedicated to protecting the environment, government entities are a major source of business subsidies. It may be scary to apply for federal business grants, but these awards are excellent possibilities for business owners that are eager to expand their operations.
You may find small business grants offered by several federal departments, including the Department of Education and the Veterans Affairs, in the extensive database known as Grants.gov.
One of the primary focuses of the SBIR and STTR funding programs is research and development for the purpose of advancing scientific inquiry and technological innovation. Participating enterprises can get in touch with 12 different federal departments that offer company subsidies and contracts through these initiatives. You need to run a for-profit company with less than 500 employees and fulfill additional criteria to be eligible.
To help small companies in rural areas thrive, the United States Department of Agriculture (USDA) runs the Rural Business Development Grant program.
To be qualified, a business must be situated in a rural region, have less than $1 million in gross revenue, and employ less than 50 new workers. It is possible to submit an application through the local or state offices of the USDA Rural Development once a year.
In most cases, small firms do not get direct assistance from the United States Small Business Administration (SBA). However, microenterprise development groups can apply for federal subsidies under the Program for Investors in Microentrepreneurs (PRIME) to help underprivileged microentrepreneurs.
These groups can be private nonprofits or run by state, local, or tribe governments. For example, the Maryland Capital Enterprises and the Native CDFI Network both got funding in 2024.
State and local government small business grants are another option to consider, as federal awards are sometimes very competitive and have a limited amount of funds available. Here are some possibilities to start your search:
1. Economic Development Administration
In order to promote economic growth, entrepreneurship, and innovation, the United States Economic Development Administration offers grants, resources, and technical help to local businesses.
Small businesses can get assistance from their state’s agency in a number of ways, including access to capital (via state or regional grants), site selection, and personnel recruitment. To find regional offices and local resources, you can explore the economic development directory.
2. Small Business Development Center
Support for small companies and prospective entrepreneurs is available at your local Small Business Development Center (SBDC). They can link you with small-enterprise grants, other company funding possibilities, counseling, training, and technical support; they are generally affiliated with local colleges or a state’s economic development agency.
3. Minority Business Development Agency centers
To support and encourage small enterprises owned by minorities, the MBDA operates a system of business centers across the country. These hubs facilitate company owners’ access to funding, contracting, and competing in developing markets.
You may get assistance with applying for federal, state, and local business grants, as well as debt-based financing, at your neighborhood MBDA center. Every year, the agency announces the winners of its small-business grant competition and keeps website visitors up-to-date on all the latest contest news.
4. State Trade Expansion Program
The State Trade Expansion Program (STEP) grant is a federal program that provides financial assistance to state governments so that small companies can begin or extend their operations into foreign markets.
You may use the money to do things like attend export trade exhibitions, create items for worldwide marketing, help with website internationalization, and more. The amounts and requirements for these government small-business grants differ by state.
5. Small company grants from corporations
As part of their corporate social responsibility efforts, several major companies and organizations provide grants to small businesses. There are foundations that provide to both charities and for-profit businesses; some focus on helping certain industries, while others are more general.
6. National Association for the Self-Employed Growth Grant
Not only are members of NASE eligible to apply for monthly grants for small businesses worth up to $4,000, but they are also eligible to apply for an annual college scholarship worth $3,000 for members’ dependents. Full applications are considered every three months (January, April, July, and October) for annual grants.
7. Freed Fellowship Grant
The Freed Fellowship selects one American small business entrepreneur each month to receive a $500 microgrant. After that, they are qualified to earn a $2,500 grant at the end of the year. In addition to the grants, the organization provides its winners with a year of access to the Freed Studio, an online community for entrepreneurs, and one-on-one consulting with a business expert.
You need to own a micro- or small-business in the United States to be eligible. Businesses that are underrepresented in the industry are strongly encouraged to apply for the Freed Fellowship. There is a rolling basis for online application submissions. In order to be eligible for the award on a monthly basis, your application needs to be submitted no later than 12:00 a.m. on the month’s final day.
8. U.S. Chamber of Commerce CO-100
Recognizing small businesses for their contributions to the U.S. economy, the CO-100 (formerly America’s Top Small Business Awards) presents a prize of $25,000. The competition also gives lesser scholarships of $2,000 to another ten companies.
To be eligible, your company must already be up and running, although it need only be operational for a year. In July, the 2024 cycle’s application window closed, and in September, the winners were revealed.
9. Verizon Small Business Grant
Through Verizon’s Digital Ready initiative, company owners may apply for grants and have access to free instructional resources. Entrepreneurs can receive a $10,000 small company award if they sign up on Verizon’s website and finish two of the following: classes, live coaching, or community events. Upon finishing these steps, you will be able to apply for a grant. The deadline for the most recent funding round was June 28, 2024.
10. Amazon Small Business Grant
Businesses with yearly sales of $1 million or less can apply for free funding through the Amazon Small Business Grant program, which runs annually. Fifteen companies will get grants from the initiative, with values ranging from fifteen thousand to twenty-five thousand dollars.
In addition to free Wifi and Kindle Scribe items, winners can also get a year of Business Prime. May was the deadline for the most recent batch of grant applications. In late July, the winners were revealed.
11. Visa Everywhere Initiative
Startups in five different parts of the world may compete for free funding through the Visa Everywhere Initiative. Candidates need to demonstrate that they have innovatively used Visa products in the creation of their product or service.
Visa will choose the best regional finalists, and those companies will compete in a worldwide final. The grand prize winner will get a small-business grant of $100,000. Regional and local champions, public favorites, and runner-ups and third-place finishers also receive additional awards. Submissions for the North American region are now closed. An October live event will feature company presentations from the 2024 finalists.
12. FedEx Small Business Grant Contest
The annual grant competition hosted by FedEx in 2024 distributed ten $20,000 awards and one $50,000 grand prize. In May, the winners were revealed.
Only for-profit small enterprises in the United States that have less than 99 workers can enter the contest. To apply, you need to be a current FedEx shipper and have a valid business shipping account number. To be informed when applications are available for next year’s competition, you can register on the FedEx website.
13. American Express Backing Small Businesses
American Express and Main Street America have partnered on the Backing Small Businesses award program. The initiative is in its third year, and 500 small companies have received $10,000 awards. Only 25 companies will be eligible for the $30,000 Enhancement Grants, which are only good for certain purposes. Later this year, recipients will have the opportunity to apply for Enhancement Grants.
The location of your company’s headquarters must be in a historic main street, downtown, or commercial district in order to qualify for this business incentive program. The application period has ended.
14. Venmo Small Business Grant
Twenty deserving entrepreneurs will each receive a $10,000 grant to help grow their small companies via the Venmo Small Business Grant program. Included in the package are mentorship opportunities, public marketing through Venmo’s website and social media channels, and more.
You must have a valid American Venmo account that is both active and linked to a legitimate company profile. In addition, your yearly sales must be below $50,000 and you must have ten workers or less. Submissions for the 2024 cycle are now closed, and the announcement of winners was made in the middle of July.
15. Lenovo Evolve small-business grant
Small companies in the US and Canada may get a hand from Lenovo through their Evolve Small project, which gives out grants and donates technology. Six companies were each awarded $15,000, a $10,000 technology bundle, and personalized mentoring from CWC Coaching and Therapy as part of this year’s initiative. For updates on future Evolve Small opportunities, visit the Lenovo website and sign up for alerts.
16. Comcast Rise
Small businesses, especially those involved in technology, can apply for grants through Comcast Rise, a program that aims to encourage growth. By participating in the program, small enterprises are eligible to receive a grant of $5,000, as well as assistance for business consultancy, educational resources, creative development, media programming, and technological makeovers.
Comcast Rise honored 500 individuals in five different cities in 2024. Details on the next application window and prerequisites will be shared in 2025.
17. Skip Small Business Grants
For entrepreneurs looking for grants and other funding opportunities, Skip is a one-stop shop. In addition to external grant opportunities, the firm runs its own grant program, which includes smaller $10,000+ Skip awards as well as bigger immediate and monthly grants.
Participation is contingent upon your membership in the Skip platform. You might need to meet some further criteria. For instance, if you want to win an Instant grant, you have to use the Skip app and watch a certain livestream video.
If you want grants to help you start a new business, it might be harder to find government funding. But there are beginning incentives available from private organizations and certain state and municipal governments.
1. Startup Funding from Secretsos
Businesses are eligible to receive $2,500 every three months under the Secretsos Small Business Grant program. In order to expand and enhance their operations, businesses are free to spend the cash in any manner that they see appropriate.
Businesses that are women-owned, veteran-owned, minority-owned, or located in an economic development zone are eligible, as are businesses that have a legitimately registered business entity and do not belong to any of the other groups listed. No company owner from the states of Hawaii, Alaska, New York, Florida, or Rhode Island may apply for the award.
This cycle’s application deadline is December 31, 2024. Reapply during the following cycle if your first application is not successful.
2. HoneyBook Breakthrough Grant
For startups in the marketing and creative consulting industries, HoneyBook has a business grant tailored to their needs. In addition to having fewer than three years of experience in business, you must be self-employed and offering your knowledge and experience as a consulting service in order to be eligible.
The Breakthrough Grant recipients will get a monetary prize of $18,000, a premium subscription to HoneyBook for three years, and $4,600 worth of professional help from HoneyBook’s team of experts. Submit your application for the first round by July. November marks the beginning of the second financing cycle.
3. The UPS Store Small Biz Challenge
An American small company with nine or fewer full-time workers has the chance to win $25,000 in the UPS Store Small Biz Challenge. Winners will also be featured in Inc. magazine. Two more finalists will each get $5,000. In May, the individuals chosen as recipients of the 2024 application were announced.
4. Bizee Fresh Start Business Grant
To assist young businesses with initial expenses, Bizee gives $2,500 in the form of the Fresh Start Business Grant (formerly the Incfile Fresh Start grant). In addition to the free tax advice, the winning business owner will also receive free registered agent services for one year, free formation services in their state, and more from Bizee.
You can’t apply unless you’re thinking about starting a business or expanding an existing one. For students thinking about going into company for themselves, Bizee has a Young Entrepreneur Grant. In 2024, there will be another cycle.
5. Hello Alice grant platform
A number of organizations, like Progressive and DoorDash, work with Hello Alice to provide various awards to small businesses, including startups. Sign up for alerts when new opportunities pop up, and then apply for the grants that sound like a good fit for your company.
6. Amber Grant for women
On a yearly basis, WomensNet distributes three $25,000 fellowships in addition to the $10,000 Amber Grant and $10,000 starting grant. Along with that, the foundation gives away more free money all year long. Companies need to submit just one application to be considered for any of WomensNet’s awards. Eligible enterprises include both new and established ones run by women.
7. SubSummit Pitch Competition
Apply to the SubSummit Pitch Competition if your subscription-based business is less than two years old. Presented annually, this event awards a small-enterprise grant of $10,000 as well as commercial services valued at $40,000.
In order to apply, you need to provide a brief film that describes your company, the idea behind your company, and, if you like, your plans for using the grant money. There will be a virtual round for the semi-finals and a live round for the finalists to compete for the prize. In May, the winner for 2024 was revealed. Visit the SubSummit website to add your name on the waiting list for 2025.
In the aftermath of a public health or natural disaster, small businesses may be eligible for hardship awards to assist with recovery costs. There are a variety of potential sources for these donations, including the government, charities, and companies.
Checking the financing dates of company hardship awards is very important since, depending on the circumstances, some of these grants may have a set time limit.
The following are a few possibilities to think about:
1. Recovery funds for small businesses: state and local
If you own a small business, you may be eligible for emergency business loans, small business hardship grants, or some other form of financial aid from your state or local government. Local governments frequently establish award programs targeted at small enterprises following major disasters, such as as the COVID-19 pandemic.
To help company owners recover from natural catastrophes like hurricanes, fires, and floods, some governments and municipalities also maintain small-business award programs.
2. Etsy Emergency Relief Fund
To help its merchants recover financially after a tragedy, Etsy collaborates with CERF+, a charity. If you own an Etsy shop and have been in good standing for at least a year, and a federally declared natural catastrophe has occurred within the past year, you may be eligible for this small business hardship award.
In the event of an emergency, Etsy is offering $2,000 in assistance. Funds are distributed periodically, and applications are accepted continuously.
3. DoorDash’s Disaster Relief Fund for Restaurants
As a small company, your restaurant may qualify for a grant from the DoorDash Restaurant Disaster Relief Fund in the event of a natural disaster. To help brick-and-mortar restaurants recover from natural disasters like hurricanes, earthquakes, and wildfires, the federal government has established a program that awards company subsidies of up to $10,000.
In addition to having three or less restaurants, you must also have fifty or fewer workers, a minimum of six months of company experience, and a minimum of $3 million in revenue per site for the last year in order to be eligible.
Submit your application no later than twelve months after the catastrophe has been declared; applications are reviewed quarterly. Thirty days following the application deadline, the winners will be announced. The deadline to apply for the most recent grant cycle is December 2, 2024.
4. Small Business Readiness for Resiliency Program
It is the goal of the two-pronged Small Business Readiness for Resiliency (R4R) Program to assist companies in being ready for and recovering from unforeseen catastrophes. You can apply for grant eligibility in the case of a disaster when you register in the R4R database and complete a readiness checklist (which involves an emergency action plan).
If you qualify for an emergency assistance award, you will receive $5,000 and will just need to prove that you lost as much, if not more, than that amount due to a disaster. This small company hardship award has several conditions, one of which is that you cannot have more than 500 employees.
5. Binc Foundation emergency financial assistance grants
Store owners in the bookselling, comic book selling, and related industries who find themselves in unexpected financial straits are eligible to apply for small-business hardship grants from the Binc Foundation. You need to have been in the United States or one of its territories and gone through a qualifying event such a natural or man-made disaster, incurred significant medical bills, or been a victim of domestic abuse in order to be eligible.
At any moment, you can connect with the Binc Foundation and seek for emergency aid by filling out an inquiry form on their website.
Applying for the correct grants for your small company may be a time-consuming and challenging process. But don’t worry! There are alternative sources of capital for your company if you aren’t eligible for certain awards.
Consider these potential paths:
Finance for small businesses. Find the best loan for your needs by comparing several choices, such as bank loans, SBA loans, business lines of credit, term loans, and equipment financing.
Card programs for small businesses. If you own a business and make regular expenditures, you might want to look at hundreds of credit cards to discover the one that suits you best and allows you to earn rewards.
Business crowdfunding initiative. Take advantage of the reach and engagement that the internet provides to launch a crowdfunding campaign in support of your small business.
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