Grant fraud happens when an individual attempts to deceive the government or private grant giver in any way. Lying, cheating or stealing are all considered fraudulent behavior when it comes to grants. Más información sobre What Are Small Business Grants .

What Kind of Grants Can I Get to Start a Business?

Grants can help you start, develop or expand your business. There are a variety of grants you can apply for, like: Government grants - The federal government usually offers economic development grants to small businesses. You can learn more about these on the site for federal grants. Grants for veterans - This can include opportunities like Nav’s small business grant, which offers up to $10,000. Grants for women-owned businesses - You can check for these at Women’s Business Centers near you. Más información sobre What Are Grants for Small Business Startups.

What Can a Small Business Grant Be Used For?

Before you receive grant money, you’ll have to explain how you’ll use it and then stick to that. If you don’t, you may have to pay it back. Typically, you can use grant money to fund different parts of your operations, like marketing efforts, training and education for you and your team, and new equipment. You can easily get a business insurance quote online .

Small Business Grants

What's in This Article?

Grants for Small Business Owners
Federal Small Business Grants
Private Business Grants for New Business Owners
Regional Government Small Business Grants
Grants To Start a Small Business
How To Apply for Small Business Grants
Business Grants vs. Business Loans
Learn More About Small Business Grants From The Hartford
Alternatives to Grants for Small Businesses
FAQs About Business Grants for Small Businesses
What Is Grant Fraud?

Grants for Small Business Owners

a small business owner researching small business grants

The costs can add up quickly when you’re starting a business. Thankfully, there are many small business grants available for business owners – you just have to know where to find them. These grants are typically a specified amount of money that certain groups offer to help small business owners achieve their goals. It’s important not to confuse grants with small business loans. The key difference between these two funding options is that you don’t have to pay back grant money. And, unlike loans, when you apply for a grant, you don’t have to put up collateral, worry about late fees or have interest accruing. Free money sounds great, doesn’t it?

Business grants do come with a few limitations, though. Both the grantee and grantor must meet a list of requirements to approve the grant. Some small business grant programs may have eligibility requirements, such as having a seguro para pequeñas empresas plan. If you don't meet the requirements, you may have to pay the grant back.

Federal Small Business Grants

There are many different types of grants, but they typically come from two major entities: federal and private. The United States (U.S.) government provides federal small business grants for different things. A small business grant is often given for very specific reasons and will not cover operational expenses, like paying off debt or growing your business. They are particular to industries and specific causes deemed worthy by the federal government.

The Small Business Administration (SBA) works with different organizations to provide grants for businesses engaged in innovative research and development through the Business Innovation Research Program (SBIR). In fact, they encourage small firms to undertake research that will meet federal research and development objectives. The SBA’s State Trade Expansion Program (STEP) also provides financial awards to state and territory governments. These awards can help small businesses or companies with export development.

Federal government grants are generally given to:

Nonprofits
Educational institutions
State and local governments

There are several different types of federal small business grants, including:

Federal Grants

Grants.gov is a large database of federal small business grants that are administered through federal agencies. You can use this database to search for grants that fit your small business.

USDA Rural Business Development Grants

The U.S. Department of Agriculture (USDA) offers rural business development grants to help small businesses in rural communities. These grants help those with fewer than 50 new employees. Small businesses that qualify also need to be in an eligible rural area and make less than one million dollars in gross revenue.

Small Business Innovation Research (SBIR)

El documento Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) grant programs put their focus on research and development. These grants are awarded for scientific research and technology development. They help connect small businesses with federal business grants from 12 different agencies. To qualify, you’ll need fewer than 500 employees.

Private Business Grants for New Business Owners

a small business owner finding out he was awarded a small business grant

Private business grants will vary depending on the nature of your business. Small businesses usually apply for federal grants. However, there are times when not-for-profit businesses and state or local governments offer economic development grants.

Consider checking with your state and local governments for grant opportunities. Many groups offer grants to:

Minorities
Micro-businesses
Ethnic groups
Veteran-owned businesses
Women-owned businesses

Small business owners can use these grants towards business endeavors. Some examples of private business grants include:

The FedEx Small Business Grant Contest

El documento FedEx Small Business Grant Contest awards one $50,000 grand prize and nine $20,000 grants between March 1st and April 1st. Only U.S. based small businesses with less than 99 employees who have a valid FedEx account can participate.

Second Service Foundation Grants

El documento Second Service Foundation grant program is for veterans and their spouses only. This grant focuses on small businesses that are creating a social impact in their community. The first-place award is $15,000, the second-place winner receives $6,000 and third place gets $4,000. Not only do you need to be a veteran or their spouse to be eligible, but you also need to own at least 51% of the business entity.

IdeaCafe Small Business Grants

IdeaCafe makes it easy for you to find grants and apply for the one’s that fit you best. The grant’s you’ll find on this website are designed to help you expand your operation and grow. There are no entry fees to apply, and you don’t need a complete business plan. All you need to do is sign up with IdeaCafe to start filling out applications.

NASE Growth Grants

Since 2006, the National Association for the Self-Employed (NASE) has awarded nearly $1,000,000 to members through their grant program. These grants are awarded each quarter. Each winner can be awarded up to a $4,000 grant to help them grow their business.

Wells Fargo Community Giving

To apply for the Wells Fargo Community Giving grants, you’ll need to be a nonprofit or educational organization that’s aligned with their focus areas of:

Financial health
Housing affordability
Small business growth
Sustentabilidad

To enter the program, you’ll need to first fill out a grant interest form to even be considered for an invite to apply.

Walmart Foundation Grants

The requirements for these grants can vary. Some grants are invitation only to apply, while others have open applications. Their local community grants are open all year for anyone to apply. El documento Walmart Foundation’s community grants award a minimum of $250 and a maximum of $5,000. There are three submission periods, including:

March 1st through July 15th
1 de Agostost through October 15th
1 de Noviembrest through December 31st

Venmo Small Business Grant

El documento Venmo Small Business Grant offers $20,000 to 10 winners. If selected, you’ll also get mentorship from industry leaders and your business will be promoted on Venmo social channels. This program is open to grant applicants that have less than $50,000 in annual revenue, or 10 or fewer employees.

Amazon Small Business Grants

With the Amazon Small Business Grant program, there’s one grand prize winner that receives $25,000. On top of this, four finalists receive $20,000 and 10 semi-finalists receive $15,000. To apply, you’ll need to have an Amazon Business account. Your business must also have an annual revenue of less than or equal to $1,000,000.

Regional Government Small Business Grants

National grant programs have a lot of competition, which is why regional grants can also be a great option to help increase your chances of gaining additional funding. It’s important to note that regional grants often run across several states.

Read through the resources below that can help you find state-level grants:

State Business Incentives Database

The State Business Incentives Database has a map that allows you to select your state and browse available grants. You can also find information on tax credits and exemptions. This database requires a membership to the Council for Community and Economic Research (C2ER), which typically costs around $380 a year.

U.S. Economic Development Administration (EDA)

El documento U.S. Economic Development Administration (EDA) provides small business grants, technical assistance and resources to support your business. Applications for grants must be submitted through Grants.gov.

Small Business Development Centers (SBDCs)

SBDCs can help business owners with free consulting and training on topics, as well as helping applicants find and apply for the right grant funds for their businesses. You can find a center near you by visiting the SBDC website.

The State Trade Expansion Program (STEP)

STEP offers funding that helps small businesses launch into international markets. For example, STEP financial support has helped U.S. small businesses with initiatives like:

Learning to export
Participating in foreign trade missions
Designing international marketing products and campaigns

Minority Business Development Agency (MBDA) Centers

If you’re a small business owner who is a minority, MBDA centers can help you expand your business. These centers are regional and provide education and grants that can help you build your business.

Grants To Start a Small Business

Grants are a great option for financing a startup, but they do require dedication. Applying for a grant is free, but it’s competitive. If you have a good business idea and need money to fund it, the challenge may be worth the fight.

Tax dollars fund government grants. This means Congress and the White House approve any federal grants. Grants align closely to the agendas of federal agencies, like the Department of Energy or the Department of Agriculture. Grants for small business startups that advance scientific research are prioritized. If you don’t fit this niche, there are still quite a few options. So, where does your small business fit in the realm of federal business grants? What about private business grants?

Many large corporations look for opportunities to help small business startups succeed. As mentioned above, FedEx and Walmart provide private grant programs for small businesses. Do your research and apply for the grant that is specific to your business, because there are quite a few out there. A few other resources you can consider for finding grants, include:

Hello Alice

Hello Alice offers a variety of grants that help grow your business. When you create an account, Hello Alice will deliver recommended grants based on your profile right to your inbox. Hello Alice also gets new grants in regularly so your options for financing are always increasing.

The Amber Grants

WomensNet founded the Amber Grant in 1998 and gives away at least $30,000 every month. To apply, you must be a women-owned business. When you submit one application, you become eligible for all grants that are related to your business. Winners are announced by the 23^rd of the following month.

The UPS Store Small Biz Challenge

El documento UPS Store Small Biz Challenge offers grants to three businesses. The grand prize winner receives a $25,000 prize plus a feature in Inc. Magazine showcasing their business. Two finalists receive a $5,000 grant. The three finalists will present their business in Miami in front of a live audience and judges.

Visa Everywhere Initiative

If you’re a fintech startup, the Visa Everywhere Initiative is a great opportunity for you to showcase your business. This initiative first launched in 2015 and then expanded into a global program. Nearly 15,000 startups have applied to the program and now work with Visa. To participate, you’ll need to apply. From there, Visa selects one global finalist per region to move toward the finals. These regions include:

América del Norte
Europa
Asia Pacific
América Latina
Central Europe, Middle East, Africa

SubSummit Pitch Competition

This grant is eligible to subscription-based businesses that are less than two years old. The winner receives a $10,000 award.

How To Apply for Small Business Grants

Applying for grants can be time consuming. That’s why it’s best to start your application early with plenty of time to complete it. Some tips for successfully applying for grants for your business include:

Staying selective: You’ll want to pick grants you know you’re eligible for. You’ll also have a better shot if your products or services align with the goals of the company that’s offering the grant. They look for businesses that are a good match for what they stand for.
Sharing your passion: Throughout your grant application, you should communicate your passion for your business. This helps the reviewer get behind your ideas and feel invested in your goals.
Using numbers to back up your points: Organizations want to invest in businesses that are thriving and show growth potential. This means that you’ll want to use numbers like sales figures and growth percentages to show you have the potential to grow your business.
Providing accurate information: If you make any mistakes in the application process or the information you provide isn’t up to date, it can slow down the reviewing process. To help prevent this, you can have multiple people proofread your application before you submit it. Following a small business start-up checklist will also help you know what information you may need.
Getting advice from others: You can talk with program staff, experts, customers or former grantees for advice and tips on filling out applications. It’s also a good idea to run your products and services by them for advice.
In addition to grants, you can also pursue other financing techniques, like working with angel investors or crowdfunding.

Business Grants vs. Business Loans

When you apply for a business loan or loan program, you’ll need to repay the money. Loans are usually given by banks or private lenders. In contrast, grants are usually awarded by government departments, trusts or corporations. You don’t need to repay grants that your small business receives.

However, one advantage to loans is that there are more options available than grants. The amount of grants you’re eligible for may be more limited. Grants also typically offer only a certain amount of financing. Loans allow you to get as much financing as your credit allows.

It’s important to note that if you don’t repay a loan, you could risk losing your assets. Grants and loans also typically have rules about how you can spend the money for your business.

Learn More About Small Business Grants From The Hartford

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Alternatives to Grants for Small Businesses

Grant programs can be time consuming to apply to and participate in, especially if you don’t win the grand in the end. That’s why it can be important to look into other financing options aside from grants. Other funding opportunities you can consider include:

Small business loans provide a certain amount of money that you can use to grow your business operation. The amount of money in the loan is based on your credit and your ability to pay it back.
Small business credit cards are geared toward small business owners. They can help you buy essentials, like office furniture or supplies. They come with different benefits depending on the one you choose. Applying for a business credit card is easier than applying for a loan and is often a more convenient option.
Peer-to-peer lending allows you to borrow money directly from other individuals. You don’t need to go to a bank for financing. There are many peer-to-peer lending sites you can use to connect with investors.
Crowdfunding for business allows interested individuals to give money to your operation in exchange for rewards or equity in your business.