Ultimate List of Small Business Grants in the U.S.
It’s almost always a fraud if someone promises you “free money,” unless it’s a small business grants.
Grants are money for free, but they come with a few costs involved:
- the time it takes to discover a grant that you qualify for;
- the time it takes to apply for and wait for a grant;
- the restrictions on how you can use the money if you don’t follow the grant’s instructions.
Even though applying for a small business grant takes time, it’s usually worth it for the free money that may be utilized to accelerate your company’s growth. If you’re wanting to put money into your company, we’ve put together a list of resources to help you get started.
What Are Small Business Grants?
Small business grants are cash provided by an organization to a firm for a specific purpose. Small business owners can apply for grants to help with their beginning, expansion, and research & development.
Grants, unlike small company loans or credit cards, do not need repayment, do not harm your business credit score, and do not require you to pay lender costs to receive your funds.
But they do, on the other hand, come with conditions: the money must be spent in a specific way, as specified by the grant donor. There may be consequences if you do not follow the rules.
Small Company Grants Come in a Variety of Shapes and Sizes
Grants are divided into two categories: public and private.
You can search government databases for state and federal grants based on your area and industry. However, these are frequently paid disorganized services, and out of date.
Small company grant programs are also offered by corporations. The application conditions for private grants are normally less stringent, but there is more competition for cash.
A foundation grant can also be applied for. This is a similar type of private donation, but instead of a corporation, a charitable foundation will provide funding.
What You Need to Know About Applying for A Small Business Grant
Everyone would do it if receiving free money was simple. Many business owners are put off by the lengthy application process, but even if the pool of candidates is small, the competition is fierce. It’s critical to stand out from the crowd if you find a grant that appears to be a good fit for your company.
- Before you begin the grant application procedure, pay special attention to the severe conditions of each award. Are you a majority-owned business? Check. Are you looking for a way to make a positive impact on the environment? Check. Have you been in business for more than three years? Hmm. You’ll have to wait until next year if you’ve only been in business for two years. You’ll wind up squandering time and effort if you try to hide the truth.
- Read the grant application carefully and provide correct and complete information. An incomplete application may be rejected during the screening process. If a section specifies a limit of one page, don’t write one and a half pages.
- Contact the grant officer to learn more about what they’re searching for. What are their requirements? Timing? Constraints? The more information you have, the better.
- Reach out to previous recipients to see what helped them in their application. They can provide you with great insight into how they handled the application so you can do the same for your company.
- You’ll need a well-crafted company plan. Ensure your business plan explains why your company will succeed, how the cash will benefit your company, and how you’ll meet the grant’s specific objectives.
Grants for Small Businesses From the State
Small company subsidies from the federal government are small in number and by industry, and they’re often quite competitive. Don’t give up—search for grants and aid programs at the state or local level to gain access to a broader variety of lesser-known options. They usually offer grants for local overall social and economic development, which means you’ll be competing against a smaller pool of applications.
Grants for Small Businesses From Corporations
If you have a brilliant company idea and need money to get it off the ground, you should look at corporate-sponsored investment rather than government grants. Large corporations, such as FedEx and Visa, frequently award large grants to small businesses in exchange for joining (and winning) a contest or pitching competition. Bonus: even if you don’t win, you could win a runner-up award or get attention for your company.
Pro tip: do some in-depth study on the most well-known names in your sector. Some firms may invest in small enterprises that are specialized to their company, even though they are more obscure and difficult to uncover.
Still got questions? Contact us today!