Business grants can be a great way for your business to get funding for your business. A business grant can be an attractive option over traditional funding options because it’s essentially free money that doesn’t have to be repaid.
Some grants provide financial assistance, while others help fund research and development. Grants are therefore a great way to help establish and grow your business. Grants and grants are considered one of the best means of funding.
What is a scholarship and how does it work?
Simply put, a grant is a sum of money given to a person, business, or corporation by federal, state, local, nonprofit, or corporation governments. Because they require no repayments of any kind, making them an attractive financial consideration for entrepreneurs and small businesses for start-up, growth, or expansion.
Usually, a grant becomes available when a government agency, nonprofit, or private company chooses to set aside a grant for an area of concern of their choice. This can be to encourage minority entrepreneurship in a community, to stimulate small businesses in communities or to reward innovation. Once the opportunity is created, requests are made, award decisions are made, and money is allocated.
Reasons to Get a Small Business Grant
Business grants provide opportunities to raise capital, purchase machinery, hire more staff, refinance existing loans, and increase your operational capabilities without the financial pressure of loan repayment. There are common reasons why small business grants are popular. Here are five great reasons to get small business grants:
It’s free money (sort of)
There is a big difference between a grant and other types of money. Grants do not need to be repaid like small business loans do. And no interest is charged on business grants. However, you cannot use the money for anything outside of the designated purpose of the grant.
You need working capital
Grant money can help shore up working capital. A small business can use a business grant to bolster its technology or franchise. Businesses choose to apply for grants to create enough working capital to enable them to achieve their growth ambitions. Grants can help cover their short-term funding needs while giving the business the extra ash it needs to grow, or even increase its inventory to take on more orders.
Buy more assets
For your business to grow and increase sales, you will need to buy more machines and even vehicles. Sometimes the money for these additional expenses may not be available from the money you earn from your business, but a grant can help fill that void. A grant can help you acquire these new assets.
start a business
If you are in the start-up stage of your business, a grant can give you the additional resources needed to get your business off the ground. This is especially handy if you can’t self-finance your business or take out a loan from a bank.
To expand your market
Some business grants will allow you to expand into new markets. For example, the Small Business Administration (SBA) State Trading Expansion Program (STEP) offers financial rewards to help small businesses expand their exports. In addition to helping you enter international markets; thanks to the grant program, you can participate in trade missions abroad; help you market your products internationally; get help with e-commerce capabilities and more.
Different subsidies for companies
As a small business owner, you have different grants available to fund your business ventures as incubators, accelerators, or loan programs. Here are some grants available for small businesses and startups:
Federal government grants for small businesses provide funding to help start or grow small businesses. Usually, Federal Home Aid grants offer the most money and come with a lot of competition, as eligible recipients do not need to repay funds as long as the grant is spent according to funding requirements. Make sure your government grant application is well-researched and clearly articulated. You can access a database for federal grants at Grants.gov.
Many states offer small business grants to help create jobs and stimulate the local economy. Usually, state grants are awarded to fund or reimburse activities that meet state priorities and objectives at that time and are intended to support small businesses located within their jurisdiction. To access the grants available in your state, you can visit your state’s official webpage and search for a grant program that is right for you.
Local Government Grants
Local government grants are generally less competitive and more intentional in supporting small businesses. Local small business support grants tend to be even smaller and are often designed to improve the local community, so if your startup or small business is focused on improving your city or county, you you may want to consider looking for local grants.
The Small Business Administration (SBA) is an independent federal agency created to promote entrepreneurship and protect the interests of small businesses. It offers a range of grants for small businesses, minority-owned businesses, veteran-owned businesses, qualifying community organizations and others.
Some of its grants are for research and development while others are designed to help small businesses become resilient. The SBA has even provided pandemic relief to small businesses that have been impacted by the pandemic through programs that include the Paycheck Protection Program (PPP), COVID Economic Disaster Loan (EIDL), Loans SBA Express relays and others. To access available grants, go to SBA Grants Page.
Grants to companies
Government agencies aren’t the only source of small business grants. Big corporations and large corporations, through their philanthropic programs, also offer small business grants. Many private companies and non-profit organizations also offer private grant programs designed to help small business owners start and grow their businesses.
While some of them give grants to non-profit organizations serving specific industries only, while others give to for-profit businesses. These grants are awarded based on merit and application materials, such as essays, testimonials, or proposals. Some business grants to consider include FedEx Small Business Grant Competition, Visa Everywhere Initiativeand Amazon’s Black Business Accelerator Program.
Diversity grant programs are designed to eliminate bias or promote diversity by providing financial assistance. These grants provide funding to assist small businesses owned by women, minorities, people with disabilities and seniors in a bid.
They often come with an easier-to-navigate application process and also offer some kind of technical support. If you are a minority-owned small business, you can access some grant opportunities at National Association of the Self-Employed (NASE), WomensNet Amber Grantand The Coalition to Support Black Business.
These are grants given by non-profit organizations for the purpose of furthering a particular cause. These grants come with a particular set of requirements on how the funding will be used. For example, they can be designed to promote local job creation, encourage research and development, support minorities, be environmentally friendly, and other goals.
Is a business grant worth it for small businesses?
Yes, a business grant can help provide that extra financial help to start or operate your business. The great thing about a business grant is that they don’t need to be repaid. This comes in handy for businesses that may be struggling with financing and struggling to repay traditional business loans.
Additionally, business grants are relatively easy to find online and can sometimes come with additional resources such as training and technical support that can improve the efficiency of your business.
Where to find small business grant programs
There are different levels of business grants available from the federal level to the local government or county level. Most of them are available online, for example via Grants.gov, SBA Grants Pageor your local Chamber of Commerce website.
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