Grants are a great source of funds for startups and small businesses
Entrepreneurs and small business owners often feel stressed about finding sufficient financial resources to start and grow their businesses. Some solve this challenge by accepting financial assistance through a small business bank loan or bringing in a minority partner who invests in the company in exchange for part ownership.
But, before taking those steps, explore the grant funding now available for entrepreneurs and small business owners who should explore the types of grants available.
Since startup businesses often have little or no revenue or profit, grants may be an option because they do not need to be paid back and have different eligibility requirements than banks.
Grant programs often include factors like location, industry, the business’s specific needs, business affiliations, and demographics such as gender and race. Most require a business plan. Grant amounts often vary and it is best to review each grant application process to determine who are eligible applicants.
Here are the top sources of grants for small businesses:
Government Grants via Agencies:
Grants.gov is a database of grants, serving as the central resource for Federal Government small business grants. Multiple federal agencies list their grants on the site giving ready access to grant seekers. However, a portion of the listed grants go to organizations that help small businesses, and therefore, individuals must search and find grants that go directly to small businesses.
While the SBA offers numerous programs to help small businesses, it does not provide grants. However, the Minority Business Agency (MBDA) which is under the SBA sometimes administers grant programs for other Federal agencies such as the National Institutesof Health’s (NIH) Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Programs.
The SBIR/STTR grant programs are substantial, serving as the largest source of early-stage capital for the life sciences in the U.S with over $1.3 billion in non-dilutive funds distributed every year — specifically to support startups and early-stage ventures in the areas of research, technological innovation and development. It is an excellent grant opportunity, often in affiliation with Small Business Development Centers and Universities. Local individuals may be found who are knowledgeable about SBIR/STTR grant qualifications and additional eligibility requirements including how to apply.
The MBDA also administers the Department of Commerce’sCapital Readiness Program that provides grants to incubators and accelerators who train and assist minority and non-minority entrepreneurs.
While also not a grant, the SBA has a program whereby they serve as a guarantor on loans taken out by small business owners, who might otherwise not be approved by a bank. Commercial banks and other lenders are designated as “SBA lenders” under this program and small business owners should seek them out for loans when denied credit .
The U.S. Department of Health and Human Services (HHS) provides grants to small businesses in the areas of research, innovation, and initiatives related to healthcare, public health, and social services.
Grants may be available through various agencies and offices within a department such as: Centers for Disease Control and Prevention (CDC), Health Resources and Services Administration (HRSA), Food and Drug Administration (FDA), among others that may be industry specific to qualify. That is why those seeking HHS grants should explore Grants.gov as well as become familiar with each agency’s web site and offices, staying informed about the latest funding opportunities and application details.
Corporate Grants, plus Foundations & Associations
Corporations often offer grant programs to support entrepreneurs and small business owners as part of their corporate social responsibility initiatives. Grants may be directed to women-owned businesses and minority-owned businesses.
Amazon Small Business Grants: are solely for Amazon Business small business customers that make less than or equal to 1 million dollars in annual revenue. Learn more
Amazon Black Business Accelerator & Grants: providing training and access to capital to sellers on the Amazon platform. Learn more
Atomic Grants: A membership organization called Passion Collective in which 10% of membership fees go to helping women entrepreneurs and small business owners.
National Association for the Self-Employed (NASE) Growth Grants: NASE offers small business growth grants to its members to support business expansion. Members may receive up to $4,000 via the NASE Growth Grants program that has distributed almost $1,000,000 to members since 2006. Grants have been used for a range of business needs that includes, hiring, marketing, facility expansion and more. Learn more
FedEX Small Business Grant Contest: 10 winners for 2023 received $30,000 each. A small business must: be for-profit with fewer than 99 employees, have a valid FedEx business shipping account number, currently ship with FedEx. Learn more.
2023 WomensNet’s Grants: runs multiple programs for women business owners that over the course of a year total $450,000. One online application form is used to be eligible for each of the four grants: Monthly Amber Grant $10,000 winner each month, The Startup Grant$10,000 winner every quarter, $25,000 Annual Amber Grant Two winners per year, and The Non-Profit Grant $10,000 winner each quarter. Learn more.
Rural Business Development Grants: The U.S. Department of Agriculture provides a range of grants and loan programs that are intended to strengthen rural communities.
IFundWomen: Focusing on women entrepreneurs this program offers both opportunities for a range of grants and a means to learn how to use crowdfunding to raise funds for their business. Learn more.
eBay Up & Running Grants: 50 eBay business sellers are awarded grant packages of $10,000, including cash, eBay education and coaching. Learn more
The Accelerate(HER) fund: Sponsored by Tiger Global Impact Ventures with Hello Alice and the Global Entrepreneurship Network, will provide grants up to $50,000 to support women entrepreneurs building breakthrough technologies or tech-enabled companies. Learn more
The Black Women in Food Grant made possible by support fromUber Eats and EatOkra provides $100,000 in grants for Black women-owned food businesses on UberEats. Grants of $10,000 will be given to 10 food enterprises that effectively demonstrate how the funds will catalyze impactful growth. Learn more
Fresh Start Business Grant: Incfile helps small businesses with a grant of $2500 to one adult entrepreneur to use for business startup costs and also receives free formation services from Incfile. Learn more
Instagram and Brooklyn Museum: A collaboration that was launched in 2022 as the #BlackVisionaries Program with $650,000 in Grants to Black artists, Black designers and Black small businesses. Learn more
The Halstead Grant is an annual award for emerging silver jewelry artists. Applicants submit answers to 15 business questions in addition to their design portfolios. The experience is designed to help jewelry entrepreneurs create a strategy to kick-start their careers. The grand prize is a $7,500 cash in grant funds plus other benefits. Learn more
Other Grant Search Assistance
OpenGrants.io: offers a free search service to locate a broad range of grants, as well as a monthly fee based service that provides assistance in finding and applying for the most relevant grants available. Learn more
USA Funding Applications: provides training materials, how to apply information and where to apply. Learn more
Grantify.io: provides search and assistance in finding federal grants. Learn more
While these grant programs are generally opened to all small business owners, subject to each’s eligibility requirements, there are grants for female business owners, black entrepreneurs/ people of color and veteran-owned businesses.
In addition to federal grants, another source of grant money for eligible companies is a state’s business grant programs. Government entities such as economic development agencies run business programs and conduct business training to spur economic growth. They often also offer business advisors, educational resources, networking opportunities and technical assistance.
Because these programs vary by state, applicants should contact their state or local agencies to learn about specific grants and their application deadline.
Crowdfunding for business is another source of capital because the money raised is not required to be paid back. However, crowdfunding is quite different than grants. Those using crowdfunding platforms should familiarize themselves with the details and eligibility requirements.
