How to Get a Small Business Grant?

You can get a small business grant from the Small Business Administration. Also, check your local government for small business stimulus grants.

Author: Brad Nakase, Attorney

Email  |  Call (888) 600-8654

What Are Small Business Grants?

It can be hard to find the best funding option for one’s small business, and many lenders will want something in return, making the choice even more stressful. For instance, a lender may decide to charge a business owner interest when he or she takes out a loan. When an entrepreneur is looking for investors, it may be necessary for them to give up a certain amount of their company ownership.

That said, there is a financing option where the business owner does not have to submit interest payments and can maintain full ownership of their business. They may, in fact, apply for business grants. Various organizations, including state and local governments, as well as federal agencies, offer small businesses money in the form of grants. Federal grant programs give money to individuals or groups that require capital to achieve defined goals. This type of financing does not have to be paid back by the borrower, unlike business loans.

Who doesn’t like the idea of free money? Unfortunately, it can be very difficult to receive one of these sought-after grants. Also, the money cannot be used for just any reason. Rather, it must be used to fulfill the goals identified by the providers of the grant.

If a business owner chooses to apply for a small business grant, he or she will have to explain how they plan to use the money. Also, they will need to follow a demanding reporting schedule.

Prior to applying for a grant, a business owner should explore the available options. Grant organizations will post their guidelines publicly so that applicants can review them beforehand. The application process is rigorous, so an entrepreneur should avoid applying to grants which they are not eligible for.

What Are Federal Small Business Grants?

Typically, small business owners interested in government grant programs will first go to sites like Grants.gov and SBA.gov.

The unfortunate truth is that government grants for small businesses are hard to find, simply because there are not many available. Also, there is a lot of competition for the few that exist.

Though the Small Business Administration (SBA) has a page on its website for finding and receiving grants, it sends the viewer to Grants.gov. This is the central information hub for available grants.

A small business owner may have better luck looking at the Small Business Innovation Research (SBIR) and Small Business technology Transfer (STTR) programs. The SBIR offers grant money to women and groups who are considered to be in need of economic assistance. The STTR, meanwhile, is an option for most business owners. Both organizations are interested in businesses that focus on their mission: research and development initiatives between the public and private sectors.

Often, these kinds of grants are offered as large amounts of money. They typically begin at $150,000 and can be even higher depending on the project and its goals.

Small Business Grants at the State and Regional Level

State and regional governments offer grant money to help encourage business growth. In California, entrepreneurs can get business grants from the government. That said, this money is often hard to get. Also, when funds are available, the chosen businesses must meet the goals or mission of the government program. Their goals are often related to specific tasks that the government agency is trying to achieve.

The Small Business Administration offers some grant money, but it usually targets other funding organizations that are responsible for finding promising projects. As an example, the SBA provided financing for the Entrepreneur Fund. This group is a lender approved by the SBA that gives capital to entrepreneurs in disadvantaged communities.

The government also offers funding to help support exporters. This program is called the State Trade Expansion Program (STEP). Unfortunately, its availability is limited and is restricted to certain states. That said, there is a part of the program called the Office of International Trade. This program promotes exporting on a national level.

Small business owners can explore available government grant programs on the state level by looking at the United States Economic Development Administration.

Corporate Small Business Grant Options

There are many organizations that offer grants to small businesses. As an example, the National Association for the Self-Employed (NASE) gives a $4,000 grant to active members once a month. However, only members can receive this award, and they are selected based on an assessment conducted by the organization.

Visa also provides grant money to small businesses via a program called the Visa Everywhere Initiative. This project offers funding to small business owners who come up with unique ideas to solve payment problems. If a business owner runs a technology company that handles payments, this could be a good opportunity.

FedEx also has a popular grant program known as the FedEx Small Business Grant. This grant offers a grand prize of $50,000, which is given to three winners. It also gives $20,000 to seven other winners.

Small Business Grants for Certain Demographics

In general, small business grants are not accessible to individuals hoping to create small ventures. That said, there are certain groups of people the government would like to support. The largest of these groups are veterans, women, and minorities.

Small Business Grants for Veterans

Grant money is available for disabled veterans, but in general there are not many resources provided for the average veteran. There is financing available as low-interest business loans, however. Below are some of the funding programs accessible to veterans:

  • Vocational Rehabilitation and Employment (VR&E): This program is offered by the United States Department of Veterans Affairs (VA), and it offers money to disable veterans. In order to qualify, a veteran must have suffered a service-related disability that affects their ability to be employed. The VA requires that applicants present a disability rating.
  • Vets First Verification Program: The VA also supports this program for existing veteran business owners. While it is not a grant, it offers services to business owners with veteran status. These individuals will get priority on contracts at the state and federal levels of government, as well as access to funding and tax benefits. The program also provides training and other resources aimed at helping veteran business owners learn how to operate their business.
  • The Street Shares Foundation: This organization provides programs for veterans which includes the occasional grant. The group suggests that veterans sign up to get updates or view the website for listings. When financing is available, there are three awards. First place is worth $15,000, second place is worth $6,000, and third place is worth $4,000.

If a veteran cannot find grants that they qualify for, he or she can apply for a small business loan.

Small Business Grants for Minorities

There are various organizations that offer grants to minority business owners. For example, the Small Business Administration provides the 8a Business Development Program. The program aims to boost socially and economically disadvantaged groups by giving them preference.

The Minority Business Development Agency provides minority entrepreneurs with advice on how to manage their small businesses. The organization offers resources and tips, including where business owners can find financing and grant opportunities. The organization can also connect small business owners for joint ventures.

There are also small business grant contests and local chambers of commerce that aim to help minority entrepreneurs.

Small Business Grants for Female Entrepreneurs

There are more grant opportunities for women entrepreneurs than ever before. There are grants at both the government level and the corporate and foundation levels. While there are not many grants available to women who are just starting out, there are a few exceptions.

Some of the popular grants designed for businesswomen include the following:

  • Amber Grant: this grant awards $2,000 to women-owned ventures every month.
  • Eileen Fisher: this grant offers a yearly prize of $100,000, which is given to ten women business owners.
  • SBA programs: The Small Business Administration offers a number of programs that offer money to women in business. However, there is a lot of competition for these grants.
  • Cartier Women’s Initiative: This grant is meant for women-led businesses that focus on social or environmental causes.

How to Apply for a Small Business Grant

Research All Options

Grants.gov offers a guide on how to identify federal grant programs. Even if a business owner prefers to use corporate or private funding sources, the procedures are worth studying.

After doing research, a business owner should look for grants that could be a good fit for their small business.

Look for Opportunities

A business owner should be sure to read the grant provider’s mission statement to see if they are a good candidate for funding. This process of applying can take time, so it is important that an entrepreneur focus on grants for which they have the highest chance of approval.

See If Qualified

Prior to applying for a grant, a business owner should make sure that he or she meets the provider’s requirements. It is important that one’s application is completely honest.

While corporate grants are less strict than government grants, and there are a lot of applicants, they tend to focus more on finding businesses with similar objectives.

Conclusion

Grants are great funding options for small businesses, but it can be hard to secure one. While it may be tempting to apply to every opportunity one comes across, it is better practice to focus on the grants that fit with the business’ goals.

Please tell us your story:

0 + 2 = ?

See all blogs: Business | Corporate | Employment

Material Breach of Contract

A material breach of contract occurs when a party fail to perform a contract's terms making the primary purpose of the contract not met, the breach is considered material.

What Type of Business Is a Partnership?

A partnership is the simplest business structure where two or more people are owners of a business. The types of business partnerships include general partnership, limited partnership, and limited liability partnership.

What Is Company Culture?

A company culture is how things get done in the workplace. Company culture can more be described as core values or operating principles used to set the tone for the company's overall operations and success.

What is a sole proprietorship?

A sole proprietor is someone who owns an unincorporated business by himself or herself. A sole proprietorship is a business that can be owned and controlled by an individual.

Sole Proprietorship vs. LLC

Sole proprietorships are popular for self-employed professionals, freelancers, and contract workers, while LLC offers personal liability protection than sole proprietorship.

Is it legal to sell homemade food in California?

Yes, you can sell food from home so long as you have California-required health and food handling permits and business licenses. You must get a permit to sell food from home from the county health department in California. 

How to Incorporate a Small Business in California?

To incorporate a small business in California, file an Articles of Incorporation with the California Secretary of State's office. After you file the Article of Incorporation, create corporate bylaws, and elect your initial director(s).

6 Steps for Planning a Business Grand Opening

1. Create Goals for the Event, 2. Begin Planning Early, 3. Stick to the Budget, 4. Have the Right Insurance, 5. Advertise Before the Event, 6. Offer Food and Entertainment

10 Facts About Business Before Starting A Business

1) More than 50% of new businesses survive their first year in business. 2) Less than 50% of family-owned businesses are passed to their children. 3) 40% of business experience challenges in the supply chain…

S Corp vs C Corp – Differences and Benefits

The main difference between an S Corp and a C Corp is that for a C Corp, the corporate profit is taxed to the company, and the dividends to the shareholders are also taxed. In contrast, for an S Corp, the profit is taxed to the shareholder but not to the corporation. Generally, small businesses are S Corps, and major companies are C Corps, e.g., Apple, Microsoft, Caterpillar, John Deer, etc.

How to Form a Corporation in California?

To form a corporation in California follow these steps: 1) Write a one page Article of Incorporation, 2) File the Article of Incorporation with the California Secretary of State, 3) Elect corporate board of directors, 4) File Statement of Information with Secretary of State.

What are the benefits of a corporate lawyer?

The are many benefits of hiring a corporate lawyer for your business which includes: avoiding litigation, enforceable contracts, develop employee policies, proper licensing, etc.

What is Commercial Litigation?

Commercial litigation refers to litigation (lawsuit) that involves commercial or business disputes in court between two or more parties.

How to Get Rid of a 50 50 Business Partner.

How to Get Rid of a 50/50 Business Partner. One method to get rid of a 50/50 partner is to file a business partnership dissolution in the state your company was formed to end the partnership.

Personal Assistant Scam

A personal assistant scam typically involves a perpetrator putting out an ad to hire a personal assistant. Then, when the perpetrator purportedly hires the personal assistant, the assistant is asked to buy something with their own money with the promise to be repaid. The perpetuator then disappears after receiving the goods.

Fiduciary Responsibility Definition

A fiduciary responsibility refers to an organization that must put another person’s best interest first. A fiduciary duty is the highest standard of care in law. For example, a lawyer owes a fiduciary responsibility to the clients, a doctor owes a fiduciary duty to a patient, and a trustee owes a fiduciary duty to a beneficiary.

What is profit formula and how to calculate profit formula?

A business profit is revenue minus expenses. The profit formula in accounting calculates the net gains or losses incurred by the business for a period by subtracting the total expenses from the total income: Total Income – Total Expenses - Profit

What is invoice reconciliation?

Invoice reconciliation is the process of matching bank statements to incoming and outgoing invoices. The purpose of invoice reconciliation is to confirm that the data entry is correctly matched with every invoice.

What Makes a Verbal Contract Valid

A verbal contract is valid when contractual elements are satisfied, such as evidence of an offer, acceptance of the offer, and consideration which is an exchange of value between the parties.

Marketing Transport Company

The easiest way of growing your list of clients is to schedule a meeting with businesses that do a lot of shipping and introduce your transportation company. Then, engage an internet presence to market your transportation business.

What Can You Do with a Toxic Business Partner?

A bad partnership could lead to profit loss and toxic company culture. The first way of dealing with a toxic business partner is to schedule a meeting to discuss your concerns calmly.

Disruptive Business Model

Disruptive business models are disruptive innovations that bring new business ideas or technology to existing markets. A disruptive business does not fit the profile of a standard business model. Amazon is considered as one of the world's most disruptive companies.

How to Get a Business Loan with Bad Credit

For small business owners with bad credit, the easiest place to get a business loan is with the SBA. Although not easy, entrepreneurs with bad credit can get a small business loan.

How to Get a Small Business Grant

You can get a small business grant from the Small Business Administration. Also, check your local government for small business stimulus grants.

Pros and Cons of Etsy

Etsy Pro: Your products are given a large audience, and you easily sell your merchandise. Etsy Cons: You can only sell handmade or vintage merchandise, and there are many competitors.

What is a Breach of Contract in California?

A breach of contract in California arose when a party to a contract failed to achieve a legal duty the contract created. When a party to a contract fails to fulfill the terms of a binding contract, they are liable for damages for breaching the contract.

Business Equipment Leasing Pros and Cons

One advantage of equipment leasing is that you don’t need to come up with all the cash to buy the equipment. One disadvantage of equipment leasing is higher overall costs than outright purchasing the equipment.

LLC vs DBA

The main difference between an LLC and a DBA is that an LLC is a business entity, and a DBA is a registered fictitious business name. Sole proprietors, general partnerships, and LLC can register for a DBA.

See all blog: Business | Corporate | Employment

© Copyright | Nakase Law Firm (2019)