How to Apply for Small Business Grant

by

Are you looking for small business grants? If your answer is yes, I’m here to tell you that you are at the right place. The Internet is full of useful information that can guide you through applying for small business grants. The problem, however, is finding the right information which leads to confusion and frustration. That’s why I created this comprehensive guide breaking down all you need to know about applying for small business grants . Each year, thousands of businesses receive grants. These small business grants can be federal, state, nonprofit organizations and more. To qualify for these small business grants, you need to meet certain criteria set by the government or private entities. If you are interested in learning about small business grants that are available near you for women-owned businesses, then check out this resource!

Money to start your business—could anything be better? That’s what a grant could do for your startup. And while small business owners may dream of receiving grants to fund their startup, they may not be as plentiful or easy to get as you may think. However, if you know where to look and how to apply, you might be successful in securing free money for your business.https://d90a2543a74163ecb68d2a7d4e0281ce.safeframe.googlesyndication.com/safeframe/1-0-38/html/container.html

Before you invest any time and energy in finding and applying for a small business grant for your startup, it’s important to understand what criteria these grants look for, and decide whether or not your particular business or industry qualifies.https://d90a2543a74163ecb68d2a7d4e0281ce.safeframe.googlesyndication.com/safeframe/1-0-38/html/container.html

Small Business Grants 2021: Free Money for Your Business

  1. EIDL and PPP
  2. Shuttered Venue Operators Grant
  3. The Barstool Fund
  4. Nav’s “Legitify Your Small Business” Grant
  5. GoFundMe Small Business Relief Fund

What is a Business Grant?

A grant is financial assistance that is given to a person, business, nonprofit, or corporation from federal, state, county, or local governments, or private businesses or corporations. There are a number of companies, nonprofits, and government agencies providing essentially free money to small business owners in the form of a small business grant. And the best part? Grants do not require repayment of any kind.

What could your business do with $10,000?

What could your business do with $10,000?

Check out Nav’s Small Business Grant now to find out how your business could win $10,000.Apply now

Grants can be formed to target businesses based on a variety of factors, including minority-owned businesses, specific for-profit businesses as well as non-profit organizations, veteran-owned businesses, grants for women, and more. 

You don’t have to make your pitch on “Shark Tank,” refinance your home, or take out  small business loans to take the next step in your entrepreneurial journey — business grants may help you get there, if you know where to look and how to apply.

And right now, with so many small businesses struggling through the pandemic, these grants can provide much-needed financial support that could be the difference between thriving or closing your doors.

We’ve pulled together numerous resources for business owners searching for small business grant opportunities. The majority of these have broad grant application requirements, meaning many businesses qualify.

Keep in mind that this can be a double-edged sword for applicants, though — you can apply for a lot more business grants if the qualifications are broad, but that means more competition for the grant. Often, you can find more success by finding niche grants for your industry, or based on your ownership structure and makeup.

In that spirit, we’ve provided some how-to advice all business owners can use to get your grant entries and/or grant proposals together, along with lists of small business grant programs, split into some of the most-searched-for categories.

Types of Small Business Grants

There are several types of grants, and you may only be eligible for certain ones.

First, there are grants offered by the government. This includes entities like the U.S. Small Business Administration and more niche departments such as the National Institute of Health, which will have industry-specific requirements for applicants.

Then there are grants offered by private companies. These may be more general and open to a wider base.

Some grants target specific groups, like women or minority entrepreneurs or veterans.

Currently, we also have grants aimed to help those negatively impacted by the coronavirus pandemic.

COVID-19 Relief Grants for Small Businesses

There are grants available to alleviate some of the pain that the coronavirus pandemic has caused small businesses. Keep in mind that many of these programs close, and some open additional rounds of funding, so check with each to see the latest.

EIDL and PPP

The Federal government recognizes the negative impact that the coronavirus pandemic has had on tens of thousands of small businesses across the country. Currently, there are two main financial assistance programs offered by the Small Business Administration (SBA) that may provide financial help…and that may not need to be paid back.

The Economic Injury Disaster Loan, is technically a loan that must be paid back, but it also offers both a Targeted and Supplemental Targeted Advance, which are funds that don’t have to be paid back. Whether you accept an EIDL loan or not, you can still apply to see if you qualify for up to $15,000 in grant funds if your business:

  • Is located in a low-income community
  • Has suffered an economic loss greater than 30% (50% for the Supplemental Targeted Advance)
  • Employ 300 or fewer employees (10 or fewer for the Supplemental Targeted Advance)

While the Paycheck Protection Program (PPP) ended on May 31, 2021, if you took out this loan, you may still qualify for loan forgiveness, which is pretty much the same as getting a grant. To qualify for loan forgiveness, you must prove that:

  • Employee and compensation levels are maintained
  • The loan proceeds are spent on payroll costs and other eligible expenses; 
  • At least 60% of the proceeds are spent on payroll costs

Shuttered Venue Operators Grants

The Shuttered Venue Operator Grant program (SVOG) has closed, but the SBA says that it will open the program for supplemental SVOGs for 50% of the original award amount, capped at a total of $10 million.

Those eligible businesses include: 

  • Live venue operators or promoters
  • Theatrical producers
  • Live performing arts organization operators
  • Relevant museum operators, zoos and aquariums who meet specific criteria
  • Motion picture theater operators, or
  • Talent representatives

The Barstool Fund

Another noteworthy COVID-19 relief grant comes from The Barstool Fund (sponsored by Barstool Sports). The fund has an ongoing crowdfunding campaign to raise funds for eligible businesses that apply. There is no set grant amount, but a recent business received $9,000.

GoFundMe Small Business Relief Fund

Crowdfunding company GoFundMe has partnered with partners to provide a COVID-19 relief fund for small businesses. Your business may receive a matching grant when you raise $500 through your own GoFundMe campaign, as long as you can verify that your business has been negatively impacted by the coronavirus. Funds must be used to pay business expenses or care for employees.

Fiserv Back2Business Grant

Fiserv has partnered with the Association for Enterprise Opportunity and Clover to offer grants of $10,000 to eligible black- and minority-owned small businesses that have been impacted by COVID-19 and the resulting recession.

To be eligible, your business must:

  • Be a minority-owned business
  • Be owned by an adult (18+)
  • Have revenue of less than $1M annually
  • Have fewer than 11 employees
  • Be formed before January 1, 2020
  • Be located in an eligible location (currently, Oklahoma, Texas, and Detroit)

New York State COVID-19 Pandemic Small Business Recovery Grant Program

If your business is in New York and you’ve suffered because of the pandemic, you may qualify for this grant program. Grant amounts are based on annual gross receipts from 2019 and start at $5,000 and can be as much as 10% of gross receipts, up to $50,000.

6 Private Small Business Grants

The following may not be specific to COVID-19, but any money (especially that doesn’t have to be repaid) will be welcome during these difficult times.

FedEx Small Business Grant Contest

Good for: Existing Businesses

Each year since 2013, FedEx has offered $25,000 grants to businesses. The application is only open for a one-month period, so ready your applications for the next open date. You’ll need to capture your business’s story via video.

National Association for the Self-Employed (NASE) Growth Grants

Good for: Growing Businesses

NASE Growth Grants are offered to NASE members looking to take their business to the next level. NASE grants are worth up to $4,000 and can be used for all types of activities, like purchasing new equipment, hiring help, and creating promotional material.

The StreetShares Foundation Veteran Business Grant

Good for: Veterans

The StreetShares Veteran Small Business Award is open to veterans, active-duty members, or the spouse of a military veteran or active duty member. Applicants can receive up to $15,000 and will be judged based on their business idea, their expected use of funds, product-market fit, team, and the influence the business will have on the veteran or military community.

Nav’s “Legitify Your Small Business” Grant

Good for: Existing Businesses

Each quarter, Nav offers a $10,000 small business grant to help them solve a business problem or take their business to the next level.

Caleb Brown Urban Entrepreneur’s Community Grant

Good for: Community Businesses

The Caleb Brown Venture Capital and Consulting Project hosts a $1,000 grant aimed at promoting and nurturing young urban entrepreneurs with vision who plan to rebuild local blocks, neighborhoods, and communities “by providing training and jobs to the next generation.” The grant is open to startups and young businesses in urban areas. This contest is run every month—submit your application by the 15th to enter.

Halstead Jewelry Grant Award: Good For: Jewelry Startups

Are you a jewelry artist? If so, submit your portfolio and business plan to Halstead for its annual jewelry grant award of $7,500. In addition to funds, Halstead aims to help jewelry artists develop their business, fine-tune their plans, and hit their goals.

9 Federal Small Business Grants

The Federal government, too, offers grants to support small businesses.

Small Business Innovation Research Program

Good For: Technology Companies

The federal research SBIR grant program is for entrepreneurs focused on innovations in technology that have the potential for commercialization. You can check its funding opportunities here. Focus areas from the past include clean and safe water, homeland security, land revitalization, green construction, advancement of health care, and more.

Small Business Technology Transfer Program

Good For: Energy-Focused Businesses

The STTR program aims to expand funding for innovative research and development leveraging existing technology. What makes this program unique from the SBIR program is that small businesses get the opportunity to formally collaborate with research institutions throughout the program. Each agency sets its own guidelines — check here for open STTR grants.

Department of Defense Grants

Good For: R&D Companies

The DoD offers grants to small businesses through the STTR program and a number of other initiatives, like the Defense Enterprise Science Initiative. The Office of Naval Research, the Air Force Office, and the U.S. Army Research Institute are all looking for research and development of technology that will help them reach their goals.

Department of Energy Grants

Good For: Innovative Technology Companies

The DOE offers grants through the SBIR and STTR programs for innovative research and development leveraging technology developed by a university or a DOE National Lab. Check here for its current grant openings.

National Institute of Health (NIH) Grants

Good For: Biomedical Businesses

NIH is a federal agency within the Department of Health and Human Services (HHS). It offers business grants to small businesses developing and researching biomedical technology. It is currently funding opportunities related to COVID-19 research.

What Is a Startup Small Business Grant?

A startup small business grant is monetary funding from the government or an organization that is given in order to help small companies and nonprofits succeed in building and growing their business. Unlike loans, you don’t have to pay this money back. There’s no collateral that you’re required to put up, and you won’t need to pay fees or interest. The best part about grants is that the money is yours to keep, and you’ll never have to pay it back after using it for your startup.https://d90a2543a74163ecb68d2a7d4e0281ce.safeframe.googlesyndication.com/safeframe/1-0-38/html/container.html

While grant money is awarded to you, it may come with rules that dictate how you can spend it. For example, let’s say you apply for a grant that is to be used to advance the technology in your business so that you and your team can work faster and produce more of your product. If you were to use that money to pay your team instead of to buy new technology and equipment, you may have to pay the funds back. You may be guilty of fraud, too, which could cause legal issues for you and your business.12

If you do receive a small business startup grant, it’s imperative that you meet the funder’s accounting and reporting guidelines and that you spend the money on what the grant covers and nothing else.

Who Qualifies for a Startup Small Business Grant?

In general, government startup small business grants aren’t available for starting a business, paying off debt, or covering operational expenses.3 And unless your business is a nonprofit or is launching a project related to areas such as technology, medical research, or education, government grants may be hard to find.4 That being said, there are startup small business grants available for specific business types and owners, including:

  • Innovators
  • Green businesses
  • Rural businesses
  • Women, veteran, or minority-owned businesses
  • Nonprofit organizations5

Unfortunately, typing “startup small business grants” into your search engine won’t necessarily provide you with an up-to-date or complete list of available grants organized by business type. However, you may be able to find grants for your small business by visiting specific websites and organizations, such as these listed below.

How to Apply for a Small Business Grant for Your Startup

Although startup small business grants may be difficult to obtain, there are things that you can do to increase your chances. Once you find the grant that you think is best for your business, gather everything you need to know before applying. Understand what’s required in the application, when it’s due, and anything else that may be needed.

A grant application could take weeks to fill out and submit.

A grant application might require an outline of your proposed work and financial data on your organization.6 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. Otherwise, you might not be considered.

Look for workshops or conferences that you can attend to learn more about the entire grant process. These events may connect you with grant writers and funders, which could give you the chance to make a good impression before even submitting an application.

Conclusion

Whether you want to expand an existing business, start a new enterprise or help a cause, there are plenty of different types of small business grants available for different purposes. Many small business grants have been made possible by the government for certain small businesses chosen from a pool that meet specific requirements. Small business grants can be a useful resource for improving your company and increasing its chances for success with minimal effort and a minimal amount of money needed to get going.

Leave a Comment