Launching or expanding a small business can be expensive, and you can take several financial routes to secure funding. Federal, state and local governments offer various grants to help small businesses launch, grow and develop. We’ll explore the best government grants, explain how to apply and share tips to help your business secure grant funding. The main difference between business grants and business loans is that loans need to be repaid, while grants generally will not. A small business loan needs to be repaid in the agreed-upon time with the agreed-upon interest rates and can require collateral. Loans also usually come from a bank or a specific lender, though some institutions, like the SBA, offer both loans and grants; both types of funding may also have rules about how funds can be used.
Try to present your grant application the way you’d present your business to a customer or client. Searching for grants takes time and effort; there’s no shortcut and a grant shouldn’t be considered “easy” money. If you are serious about applying for and receiving a grant, you will have to regularly look for opportunities.
Crowdfunding has become one of the most popular methods of raising money for startup businesses, largely due to online crowdfunding sites that make it accessible to nearly anyone. With chapters around the country, SBDCs are designed to help small businesses succeed by offering counseling, education, and other resources. You can reach out to your local SBDC and ask if they’re aware of any potential funding opportunities in your area.
For funny post , minority business owners can seek specific minority-owned business grants. You can find small business grants through the federal or state government, nonprofit organizations, private companies and foundations. A few good places to start are the federal grant database Grants.gov and your local Small Business Development Center (SBDC). Businesses, associations, foundations, societies and other organizations may offer private grants to help small businesses launch or grow. Like government grants, these private grants and awards come with their own application requirements and are sometimes reserved for certain types of companies or those in specific industries. If you’re new to searching for federal grants, Grants.gov — a database of grants from federal grant-making agencies — is a good place to start.
Best known for the SBA loan program, through which it backs loans to small businesses made by private lenders, the SBA also has a limited grants program. These resource centers funded by the Small Business Administration offer business coaching, education, technical support and networking opportunities. They may also be able to help you apply for small-business grants, develop a business plan and level up your business in other ways. The final step in preparing for a grant application is to get in the habit of creating and applying for one. Start small for your first time — a $1,000 grant might be a good place to start practicing with an application that doesn’t require much work or time investment. You can expand as you get more comfortable with the process and start applying to multiple grantors, but it helps to start small and build up from there—both in volume and in dollar amount.
For example, Grants.gov has a blog devoted to helpful grant-writing tips. This can give you a better idea of what the administrators are looking for and allow you to position your business accordingly. Designed for business owners, CO— is a site that connects like minds and delivers actionable insights for next-level growth.
A small business loan, unlike a small business grant, has to be repaid, plus interest and any fees a lender charges. A grant application might require an outline of your proposed work and financial data on your organization. Don’t be afraid to consult other experts such as your accountant or any team members who may be able to help with the application, too. Whatever you do, just be sure to follow the parameters of the grant application and don’t leave anything out.
