Grants plays a very important roles in business, without it some startups will nt be able to kick start and those that are already running may not be able to maintain their business for the first few months.
You need grand to sustain your business especially if you are starting with no prior funds from your savings of funds raised from family members and friends.
So today we will be talking about the best kind of grants you should go for especially for startup. Going for this grants are really important in starting up your business.
1. Federal Government Grants
The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs invest in companies pushing boundaries in research and development. To be eligible, your business must be for-profit and have fewer than 500 employees. Phase I awards typically offer up to $250,000 to validate your concept. If you can prove your project’s potential, Phase II could grant up to $750,000 for further research. Phase III, though not directly funded by these programs, opens doors to contracts and production agreements.
If your business is planted in a rural area, the USDA Rural Business Development Grant might be your financial fertilizer. These grants focus on promoting local economic growth and can be used for projects like training, technical assistance, or even acquiring land. Your business should have fewer than 50 new employees and less than $1 million in gross revenue.
The SBA’s PRIME program supports microenterprises. This program doesn’t offer direct grants to businesses. Instead, it empowers microenterprise development organizations to assist disadvantaged entrepreneurs.
These federal grants can be game-changers for small businesses across various sectors. Stick to what fits your business best and make your move smartly.
2. Regional and State Grants
Economic Development Administration (EDA) grants aim to support economic development and innovation at the regional level. These grants are perfect for businesses looking to expand or innovate within specific communities. The catch? Your projects must promise to generate jobs or enhance the regional economy. A typical EDA grant might cover costs like:
- Feasibility studies
- Strategic planning
- Construction activities
The Small Business Development Centers (SBDC) serve as invaluable resources for aspiring and existing entrepreneurs. While SBDCs primarily focus on providing business counseling, training, and technical assistance, they also connect businesses with grant opportunities. Each SBDC customizes its services to the local business landscape, ensuring that you get advice and resources specifically relevant to your region and industry.
State-specific programs are where the magic happens for localized support. States like California, New York, and Texas run specialized grant programs catering to their diverse economic landscapes. State-specific programs vary widely in terms of eligibility and funding sizes. Some focus on emerging industries, while others target traditional sectors like agriculture, manufacturing, or retail. Therefore, it’s crucial to research what your state offers and align your business objectives with the grant’s goals.
Regional and state grants are designed to invigorate local economies by supporting small businesses catering to their unique needs. Explore these options, remain proactive in your application process, and leverage local resources to elevate your business.
3. Private and Corporate Grants
Amazon’s Small Business Grant program is geared towards businesses with an Amazon Business account and less than $1 million in annual revenue. The grant awards range from $15,000 to $25,000, providing substantial aid to help businesses scale operations, improve marketing efforts, or innovate product lines.
Verizon’s Small Business Grant, part of its Digital Ready program, supports small businesses impacted by the digital divide. The program offers up to $10,000 in grants, aiming to help businesses develop their digital presence, improve technologies, or provide essential services to their communities.
The Freed Fellowship Grant is designed to provide financial support to minority-owned businesses. Offering a $500 microgrant monthly and an end-of-year $2,500 grant, the program targets businesses needing a financial boost to execute specific projects or overcome short-term financial hurdles. Additionally, grant recipients receive:
- A half-hour strategy session with a business expert
- A one-year membership in the Freed Studio, focusing on sustainable growth practices
Scouting for private and corporate grants involves proactive research and consistent monitoring of grant portals and business news. Websites like Hello Alice and SCORE frequently list various grant opportunities and offer guidance on eligibility and application processes. Joining business networks and subscribing to industry-specific newsletters can also keep you informed about new grants and deadlines.
When applying, customize each application to the specific grant criteria. Highlight how your business aligns with the grant’s goals and demonstrate clearly how the funds will be used. Providing detailed budgets, thorough project plans, and evidence of your business’s impact can make your application stand out.
Private and corporate grants present diverse funding opportunities crucial for small business growth. Programs like the Amazon Small Business Grant, Verizon Small Business Grant, and Freed Fellowship Grant are customized for different business needs and demographics, offering significant financial support without the obligation of repayment. Thorough research, careful preparation, and timely applications can help small business owners tap into these valuable resources, driving growth and innovation in their enterprises.
4. Specialty and Hardship Grants
The Amber Grant, named in memory of a young woman who loved animals and had a passion for entrepreneurship, has become a beacon for female entrepreneurs seeking financial support. Administrated by WomensNet, this grant program offers $10,000 monthly to women-owned businesses. An additional $25,000 is awarded annually to one of the monthly recipients, further boosting their business endeavors.
For businesses on the Etsy platform impacted by natural disasters, the Etsy Emergency Relief Fund offers much-needed assistance. Eligible sellers, who have been active on the platform for at least one year, can receive up to $2,000 in grant money to help them recover from disaster-related damages.
Numerous other specialty grants cater specifically to minority-owned, veteran-owned, or other uniquely positioned businesses. Here are several notable ones worth considering:
- HerRise Micro-Grant: Monthly $1,000 grants from the Yva Jourdan Foundation and HerSuite Spot, aimed at women of color entrepreneurs. These funds can be used to cover equipment, marketing expenses, or business expansion costs.
- First Nations Development Institute Grants: Targeted towards Native American projects and organizations, these grants support economic development in tribal communities by funding business ventures that preserve Native cultures.
- Comcast RISE Investment Fund: Grants of $5,000 plus additional resources like technology and media services for minority-owned businesses. The program also provides marketing consultations and a 30-second TV commercial production.
For businesses impacted by pandemics or other widespread hardships, grant programs such as the Fast Break for Small Business Program by LegalZoom and NBA, which offers $10,000 and $500 worth of LegalZoom services, can be vital. Managed by Accion Opportunity Fund, this initiative primarily supports Black-owned businesses.
To efficiently explore and apply for these grants, thorough preparation and persistence are key. Start by identifying programs that align with your business’s challenges and demographics. Websites like Hello Alice and SCORE provide comprehensive databases and updates on available grants, ensuring you have the latest information at your fingertips.
When applying, it’s pivotal to craft your narrative compellingly and authentically. Grants for specialized groups and hardship situations often look for personal stories and demonstrable community impact. Be clear on how the funds will specifically help bridge your business through the hardships or growth phases.
Conclusion
Specialty and hardship grants play a critical role in supporting businesses facing unique challenges. Programs like the Amber Grant for women, the Etsy Emergency Relief Fund, and numerous others for minority and disaster-affected businesses provide financial and resource-based support customized to elevate these businesses. Diligence in application, coupled with targeted research, can help you leverage these grants to sustain and grow your business amidst adversities.
