The costs can add up quickly when you’re starting a business. Thankfully, there are many small business grants available for business owners. You just have to know where to find them. These grants are typically a specified amount of money that certain groups offer to help small business owners achieve their goals. It’s important not to confuse grants with small business loans. The key difference is that you don’t have to pay back grant money. And, unlike loans, when you apply for a grant, you don’t have to put up collateral, worry about late fees or have interest accruing. Free money sounds great, doesn’t it?

 

Business grants do come with a few limitations, though. Both the grantee and grantor must meet a list of requirements to approve the grant. Some small business grant programs may have eligibility requirements, such as having a small business insurance plan. If you don’t meet the requirements, you may have to pay the grant back.

 

There are many different types of grants, but they typically come from two major entities: federal and private. The U.S. government provides federal small business grants for different things. A small business grant is often given for very specific reasons and will not cover operational expenses, like paying off a debt or growing your business. They are particular to industries and specific causes deemed worthy by the federal government.

 

The Small Business Administration (SBA) works with different organizations to provide grants for businesses engaged in innovative research and development through the Business Innovation Research Program (SBIR). In fact, they encourage small firms to undertake research that will meet federal research and development objectives. The SBA’s State Trade Expansion Program (STEP) also provides financial awards to state and territory governments. These awards can help small businesses or companies with export development.

 

Federal government grants are generally given to:

 

You can visit the federal grants site to search for ones that may apply to your business.

 

 

Private business grants will vary depending on the nature of your business. Small businesses usually apply for federal grants. However, there are times when not-for-profit businesses and state or local governments offer economic development grants. Consider checking with your state and local governments for grant opportunities. Many groups offer grants to:

 

 

Small business owners can use these grants towards business endeavors.

Examples of private business grants can include:¹

 

 

 

 

Tax dollars fund government grants. This means Congress and the White House approve any federal grants. Grants align closely to the agendas of federal agencies, like the Department of Energy or the Department of Agriculture. Grants for small business startups that advance scientific research are prioritized. If you don’t fit this niche, there are still quite a few options. So, where does your small business fit in the realm of federal business grants? What about private business grants?

 

Many large corporations look for opportunities to help small business startups succeed. As mentioned above, FedEx, Walmart and Visa all provide private grant programs for small businesses. Other companies that provide private grants include Futures Assurance Network, the Coca-Cola Foundation and many more. Do your research and apply for the grant that is specific to your business, because there are quite a few out there.

 

Applying for Grants as a Small Business Owner

• Staying selective: You’ll want to pick grants that you’re eligible for. You’ll also have a better shot if your products or services align with the goals of the company that’s offering the grant. They look for businesses that are a good match for what they stand for.
• Sharing your passion: Throughout your grant application, you should communicate your passion for your business. This helps the reviewer get behind your ideas and feel invested in your goals.
• Using numbers to back up your points: Organizations want to invest in businesses that are thriving and show growth potential. This means that you’ll want to use numbers like sales figures and growth percentages to show you have the potential to grow your business.
• Providing accurate information: If you make any mistakes in the application process or the information you provide isn’t up to date, it can slow down the reviewing process. To help prevent this, you can have multiple people proofread your application before you submit it. Following a small business start-up checklist will also help you know what information you may need.
• Getting advice from others: You can talk with program staff, experts, customers or former grantees for advice and tips on filling out applications. It’s also a good idea to run your products and services by them for advice.