26 Mar, 2018

Startup Business Grants

Terrified or quite excited by the process of starting a business, entrepreneurs all over the world have to face a few challenges. Each year thousands of them start their journeys of becoming proud owners. But one of the biggest difficulties along the way is probably getting the necessary funds to put your business idea into practice.

The good news is that in today’s world there are quite a few options out there when it comes to putting together a certain amount of money. Taking into consideration that friends and family are out of the question, an entrepreneur can consider the following options: crowd-funding, angel investors, different kinds of loans, credit cards and of course, grants.

 

So first of all, what exactly is a grant and who gives them out to entrepreneurs?

Grants are non-refundable sums of money often provided by the government, a corporation, foundation or trust, to an individual, a business, an institution or non-profit organizations. The grants that entrepreneurs and businesses are looking for are made up of project-related funding.

Now that we’ve got that cleared up, let’s take a look at what kind of grants a small business can actually obtain and most importantly from where.

 

Federal Government Grants

Depending on the type of business that you are planning to start, you can obtain a grant from different agencies of the federal government of the United States.

A good example would be the U.S. Department of Agriculture that offers multiple grant and loan programs for rural small businesses. The department actually has a Rural Business Investment Program which accepts applications on an annual basis. Businesses structured as limited partnerships, limited liability companies or corporations can be eligible, but they also need to meet other criteria.

The government also offers businesses grants through programs like the Small Business Innovation Research (SBIR) and the Small Business Technology Transfer (STTR). Meant to promote innovation and progress, these programs provide companies that have a Research & Development department with funds. The grants start from at least $100,000 and can even reach $1 million

This way, entrepreneurs are highly encouraged to invest in technology and not only. There are quite a few federal agencies that participate in these programs, a few of them being: Department of Defense, Department of Education, Department of Commerce, Department of Agriculture, Natural Science Foundation and many more. To find out more details you can simply visit the program’s website and find out if your business may be eligible.

Last but not least, the federal government also offers entrepreneurs funds through Government challenges. The topics of these challenges range from humanitarian causes to science projects.

 

It’s also important to know what type of grants the federal government isn’t offering to businesses: funds for starting and expanding a company, funds for paying debt and for costs of operations.

 

State & Local Government Grants

Unfortunately, finding state and local government grants isn’t quite as simple as finding federal grants. However, thorough research on the web should still get you some results. Or even easier, picking up the phone and asking about grants programs in the area might do the trick and help you get all the necessary info.

One type of grant that most states offer is STEP Grant (State Trade and Export Promotion, Grant). It is meant to aid companies when it comes to their marketing and sales expansion.

 

Corporate grants

These types of grants are usually provided by large corporations or different organizations to small businesses. They are often offered after the winning of a certain contest. Here are some good examples of grants, some of them even offered on an annual basis:

·         Fedex Small Business Grant – this grant is offered to small businesses after a contest. The winner takes home a check of $25,000, while the runner-up will get $15,000. There are usually 10 companies who get rewarded, the other 8 receiving $7,500.

·         Sam’s Club Grant Program – it isn’t directly offered to businesses, but Sam’s Club Grant Program supports non-profit organizations which in turn support entrepreneurs or small business owners.

·         Wal-Mart Foundation – the popular Wal-Mart offers many annual grants for businesses. It has awarded large sums of money over the years; in 2015 only it gave out $1.4 billion. This foundation gives out funds similarly to Sam’s Club, more specifically offering money to some organizations that support businesses.  

·         Miller Lite Tap the Future Grant – by participating in the Miller Lite competition you could win more than $200,000 in order to fund your business. There are also prizes in the form of seminars.

Other Grants For Minorities & Women

SBA InnovateHER Challenge

Each year three female business owners get to win prizes that are worth $70,000.  The U.S. Small Business Administration is the one that provides the funds.

 

The Amber Grant for Women

Offered by WomensNet for more than 20 years, The Amber Grant awards one winner with $500 each month of the year. Additionally, one of those monthly winners gets $1000 at the end of the year.  

 

The Eileen Fisher Women-Owned Business Grant Program

Eileen Fischer is an American clothing designer and founder of the women's clothing brand Eileen Fisher, Inc. With the objective of supporting innovative, women-owned companies which are already beyond the start-up phase and ready to expand, this grant offers  $100,000 in grants for up to 10 grant recipients (minimum grant $10,000) on an annual basis.

"I know how important it is to have someone believe in and validate your work," says Eileen. "I want to encourage women entrepreneurs, especially those who firmly believe that business can be used to create social and environmental change."

The eligibility criteria include the fact that the business should be 51% owned by a woman/women. Other requirements also state that the company’s annual revenue shouldn’t exceed $1 million dollars.

 

Zions Bank Smart Women Grants

A big supporter of the economic development in the communities, Zions Bank is a market leader in US Small Business Administration lending that is based in Utah and Idaho. Women can win $3,000 through this grant. Zions Bank is open to anyone who “promotes the empowerment of women or directly benefits women or low-income or underserved populations in Utah and Idaho.”

 

 

These are of course just a few of the business grants available out there. For more information, you can visit the grants’ websites and see what you’d be eligible for.