Finding Federal and State Grants for Small Businesses: A Comprehensive Guide

Questions Answered in this Article

• What is Grants.gov and what type of federal small-business grants are available through it? Grants.gov is a database of government grants administered by various federal agencies, including the Department of Education and Veterans Affairs. Federal small-business grants available through Grants.gov include the Small Business Innovation Research (SBIR) and the Small Business Technology Transfer (STTR) grant programs, which offer to fund for technology innovation and scientific research, and the Rural Business Development Grant program, which provides financing to strengthen and grow small businesses in rural communities.
• What is the Program for Investors in Microentrepreneurs (PRIME) and how can small businesses access it? PRIME is a program that offers federal grants to microenterprise development organizations that provide assistance to disadvantaged microentrepreneurs. These organizations, can be private nonprofits or run by the state, local, or tribal governments, including the Washington Area Community Investment Fund and the GROW Nebraska Foundation. Small businesses can access PRIME by working with a microenterprise development organization that receives funding from the program.
• What resources are available to small businesses at the state and regional levels? There are a number of resources available to small businesses at the state and regional level, including the Economic Development Administration (EDA), Small Business Development Centers (SBDCs), and the Minority Business Development Agency (MBDA). The EDA provides grants, resources, and technical assistance to support economic growth and encourage entrepreneurship and innovation, while SBDCs provide support for small businesses and aspiring entrepreneurs, including counseling, training, and technical assistance. The MBDA operates a national network of business centers that help minority-owned small businesses access capital, secure contracts, and compete in emerging markets.
• How can small businesses access funding through the Small Business Administration (SBA)? While the SBA doesn’t typically offer grants directly to small businesses, it does offer funding through the State Trade Expansion Program (STEP), which helps small businesses expand into international markets, and the 7(j) Technical Assistance Program, which provides technical assistance to small businesses owned by socially and economically disadvantaged individuals. Small businesses can also access financing through SBA-guaranteed loan programs, such as the 7(a) Loan Program and the 504 Loan Program.
• What are some tips for small businesses looking to apply for grants? Some tips for small businesses looking to apply for grants include thoroughly researching available grants and ensuring that they meet the eligibility requirements, carefully reviewing the application instructions and requirements, and seeking assistance from resources such as the SBA, SBDCs, and EDA if needed. It’s also important to keep in mind that the grant application process can be competitive and that it may take time to find the right to grant opportunity.

Summary

• Federal small-business grants can be found through Grants.gov, a database of government grants administered by various federal agencies.
• The Small Business Innovation Research (SBIR) and the Small Business Technology Transfer (STTR) grant programs offer to fund technology innovation and scientific research and connect small businesses with federal grants and contracts from 11 government agencies.
• The USDA Rural Business Development Grant program provides financing to strengthen and grow small businesses in rural communities.
• The Program for Investors in Microentrepreneurs (PRIME) offers federal grants to microenterprise development organizations that provide assistance to disadvantaged microentrepreneurs.
• State and regional small-business grants are also available through the Economic Development Administration (EDA), Small Business Development Center (SBDCs), and the Minority Business Development Agency (MBDA).
• The SBA offers funding through the State Trade Expansion Program (STEP) and the 7(j) Technical Assistance Program and also offers financing through SBA-guaranteed loan programs such as the 7(a) Loan Program and the 504 Loan Program.
• Tips for small businesses looking to apply for grants include thoroughly researching available grants, carefully reviewing application instructions and requirements, and seeking assistance from resources such as the SBA, SBDCs, and EDA.

Federal Small-Business Grants

For businesses focused on research and development, the Small Business Innovation Research (SBIR) and the Small Business Technology Transfer (STTR) grant programs offer funding for technology innovation and scientific research. These programs connect small businesses with federal grants and contracts from 11 government agencies. To qualify, businesses must operate as for-profits, have no more than 500 employees, and meet other eligibility requirements.

The U.S. Department of Agriculture (USDA) administers the Rural Business Development Grant program, which provides financing to strengthen and grow small businesses in rural communities. To qualify, businesses must have fewer than 50 new employees, less than $1 million in gross revenue, and be located in an eligible rural area. Applications for this grant are accepted once per year through the USDA Rural Development’s local or state offices.

The Small Business Administration (SBA) doesn’t typically offer grants directly to small businesses. However, the Program for Investors in Microentrepreneurs (PRIME) offers federal grants to microenterprise development organizations that provide assistance to disadvantaged microentrepreneurs. These organizations, which can be private nonprofits or run by the state, local, or tribal governments, including the Washington Area Community Investment Fund and the GROW Nebraska Foundation.

In conclusion, small-business owners looking for financial support should consider applying for federal grants through programs such as Grants.gov, SBIR, and STTR, the USDA Rural Business Development Grant program, and PRIME. While the application process may seem intimidating, these grants are a great opportunity for businesses to grow and succeed.

State and Regional Small-Business Grants

Starting or growing a small business can be a challenging process, and financial support can be crucial for success. Fortunately, there are a number of states and regional small-business grants available to help entrepreneurs achieve their goals.

One source of funding is the Economic Development Administration (EDA), a U.S. Department of Commerce agency that provides grants, resources, and technical assistance to support economic growth and encourage entrepreneurship and innovation. Each state has its own EDA agency, which can help businesses find financing, secure locations, and recruit employees. To find the EDA agency in your area, you can search the economic development directory for regional offices and local resources.

Another resource is your local Small Business Development Center (SBDC), which provides support for small businesses and aspiring entrepreneurs. These centers, which are often associated with local universities or a state’s economic development agency, can help connect you with small-business grants as well as other business financing opportunities, along with counseling, training, and technical assistance.

For minority-owned small businesses, the Minority Business Development Agency (MBDA) operates a national network of business centers dedicated to growing and promoting these businesses. These centers help business owners access capital, secure contracts, and compete in emerging markets. Your local MBDA center can help you apply for debt-based financing as well as federal, state, and local business grants. The agency usually holds an annual small-business grant competition and provides updates on this contest on its website.

The Small Business Administration (SBA) also offers funding through the State Trade Expansion Program (STEP) grant, which helps small businesses cover the costs of starting or expanding into international markets. The available funding amounts and eligibility criteria for these government small-business grants vary by state, but capital can be used to participate in export trade shows, design international marketing products, support website globalization, and more.

In summary, there are a number of states and regional small-business grants available to help entrepreneurs achieve their goals. These grants can provide crucial financial support and can be accessed through agencies such as the EDA, SBDCs, MBDA, and the SBA’s STEP program.

Corporate Small-Business grants

Corporate small-business grants can provide a much-needed boost to small companies. Many large corporations have a philanthropic aspect that includes providing grants to small businesses. These grants can range from contests with cash prizes to funding for tech-forward startups.

One example of a corporate small-business grant is the FedEx Small Business Grant Contest. This annual competition awards over $250,000 to 10 small businesses, with three grand prize winners receiving a $50,000 grant and $4,000 in FedEx print and business services. To be eligible, businesses must be for-profit, have been operating for at least six months, and have 99 employees or fewer.

Another option is the National Association for the Self-Employed (NASE) small-business grants. NASE members can apply for monthly grants worth up to $4,000, as well as an annual $3,000 college scholarship for their dependents. Grants are awarded year-round and applications are reviewed quarterly.

The Fast Break for Small Business program, a partnership between LegalZoom, the NBA, WNBA, and NBA G League, offers $10,000 grants and up to $500 in LegalZoom services to small-business owners in underserved and underrepresented communities. Applications are open twice a year.

The Visa Everywhere Initiative is a global grant competition that funds tech-forward startups that have developed a product or service involving Visa products. The top five finalists in each region will move on to a global finals event, with the overall winner receiving a $100,000 small-business grant. Additional grants are also awarded to second and third-place finalists, as well as regional and local winners.

The Venmo Small Business Grant program awards 20 eligible small businesses with $10,000 in funding, as well as public promotion on the Venmo and PayPal websites and social media accounts, business resources, and professional consulting services. To qualify, businesses must have a U.S. Venmo account and valid business profile, less than $50,000 in annual sales, and 10 employees or fewer.

Finally, the Lenovo Evolve Small initiative offers grants and technology donations to small businesses in the U.S. and Canada. This year, the Lenovo Evolve Grant is providing three small businesses with $30,000 in funding, $10,000 in Lenovo technology, and a mentorship session with Queen Latifah. To be eligible, businesses must have 100 employees or fewer.

There are many corporate small-business grant options available, each with its own specific requirements and focus areas. Small-business owners should research and carefully consider which options may be the best fit for their company.

Tips for Applying for Small-Business Grants

Starting a business can be a costly endeavor, and finding funding can be a challenge. While federal grants may be difficult to come by, there are other options available such as state and local government grants or private company grants. Here are a few options to consider if you are seeking startup business grants:

1. Incfile Fresh Start Business Grant: This grant offers $2,500 to help cover startup costs for new entrepreneurs. The winner will also receive free formation services in their state, free Registered Agent services for a year, and a free tax consultation from Incfile. To be eligible, you must be starting a new business or looking to grow an existing one. Incfile also offers a Young Entrepreneur Grant for students interested in starting their own businesses.
2. U.S. Chamber of Commerce Dream Big Awards: This annual competition recognizes small businesses for their contributions to the U.S. economy and offers a grant of $25,000. The competition also includes awards in categories such as emerging business and green/sustainable business, with associated prizes. To qualify, you must have an existing business, but you need to have been in operation for only one year.
3. Hello Alice Grant Platform: Hello Alice partners with various companies to offer grants for small businesses, including startups. By creating an account, you can receive notifications about new grant opportunities and apply to those that are relevant to your business.
4. Amber Grant for Women: WomensNet offers a $10,000 monthly Amber Grant and awards two $25,000 grants annually. The foundation also provides additional funding throughout the year. To qualify for any of the grants offered by WomensNet, businesses simply need to fill out a single application. Startups and existing women-owned businesses are eligible.

COVID-19 Small-Business Grants

Although many small business grant programs have stopped accepting applications, there are still a few options available for businesses affected by the COVID-19 pandemic. Here are some options to consider:

1. State and local COVID-19 small business grants: Some state and local governments are still offering grant programs specifically for COVID-19 relief. For example, small businesses in New York can access free financing up to $50,000 through the New York State COVID-19 Pandemic Small Business Recovery Grant Program. In Sonoma County, California, microbusinesses can apply for grants of $2,500 through the California Microbusiness COVID-19 Relief Grant Program. Check with your state or local government to see what options may be available for your business.
2. SBA small business grants: The U.S. Small Business Administration (SBA) has closed its COVID-19 relief grant programs, including the Shuttered Venue Operators Grant and the Restaurant Revitalization Fund, and is no longer accepting new applications. The period to apply for the $10,000 Economic Injury Disaster Loan advance has also expired.

Overall, it may be worth checking with your state or local government to see if there are any grant programs currently available for small businesses affected by the COVID-19 pandemic.

Alternatives to Small-Business Grants

Finding and applying for grants can be a challenging and time-consuming process, and it’s not always possible to secure the funding you need. If you don’t qualify for grants or are looking for alternative funding options, here are a few options to consider:

1. Small business loans: There are various types of loans available to small businesses, including bank loans, SBA loans, business lines of credit, term loans, and equipment financing. It’s important to compare your options and choose the right financing solution for your needs.
2. Small business credit cards: Business credit cards can be a useful tool for funding everyday business purchases and earning rewards in the process. Explore your options to find the best card for your business.
3. Crowdfunding for business: Crowdfunding can be a way to raise money for your small business by promoting your product or service through an online campaign. This can be a good option if you have a unique product or service that resonates with a specific audience.

Conclusion

In conclusion, small businesses in need of financial support have a number of options for finding federal, state, and regional grants. Resources such as Grants.gov, the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs, the USDA Rural Business Development Grant program, and the Program for Investors in Microentrepreneurs (PRIME) can help connect small businesses with grants and funding opportunities. Additionally, the Economic Development Administration (EDA), Small Business Development Centers (SBDCs), and the Minority Business Development Agency (MBDA) offer support and resources at the state and regional levels. While the grant application process can be competitive, these programs provide a valuable opportunity for small businesses to grow and succeed.