Step into the future of financing with our 2024 Business Grants Guide, your comprehensive resource for navigating the latest opportunities and securing the funding your business deserves.
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If you’re wondering what small business grants to apply for, look no further. Small business grants are a powerful funding tool for new businesses like limited liability companies (LLCs), partnerships, and even corporations. But getting them can be challenging if you’re not sure where to start.
In this guide, we’ll cover all the essentials of small business grants in 2024, including what they are, the different types of grants you might be eligible for, and how to make your applications as successful as you can.
A small business grant is money that’s awarded to a small business with no strings attached. A grant doesn’t have to be repaid; the funds are yours to use to further your business objectives. In some cases, you have to use the funds for specific business purposes, but that depends on the grant.
In a way, a grant is somewhat similar to a scholarship granted to a college student; the student doesn’t have to repay their scholarship, unlike any loans they apply for. A grant is the same way. It’s a great way to fund your LLC or other fund your business.
Small business grants come from a variety of sources and can benefit different types of businesses: those in a specific industry, those owned by veterans or minority groups, and more.
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If you have a new business idea that you’re ready to act on, checking out grant opportunities to help with cash flow is a good place to start (see cash flow definition). In general, startup or small business grants are easiest to qualify for if your business is a nonprofit organization or is launching a project that focuses on:
Additional categories for which grants may be available include:
There are a wide variety of different kinds of grants available to many different business types. No two grants are alike, either. Here’s a look at the different grants your business might be able to apply for.
Federal grants are those offered by federal government agencies. While federal grants tend to be quite large, they’re available to entrepreneurs across the entire country. So, competition for them can be quite stiff. It’s still possible to obtain one, but be aware they aren’t a surefire way to receive funding.
Some of the top federal grants are offered by the Small Business Innovation Research and Small Business Technology Transfer programs. The U.S. Chamber of Commerce is also a great resource for federal funding opportunities. The government generally favors grants that foster entrepreneurship, technological advancement, and community organizations. Learn more on the sbir.gov and uschamber.com websites.
State grants are a great alternative to federal government grants because there’s generally less competition since they’re exclusive to businesses in your state. State grants usually award a smaller dollar amount than federal grants, but they can still give you a much-needed financial boost.
Every state has unique grant opportunities for different types of businesses. We recommend checking with your state’s Small Business Development Center for some initial guidance regarding what grants are available in your area. Your Secretary of State’s website might have a page for grants and resources. You can also consult with your local chapter of the Economic Development Administration. Learn more on the eda.gov website.
It’s not uncommon for cities or counties to foster economic growth by offering grants to small businesses. The amount of money available and the level of competition vary, though. Some areas offer large grants, and others offer microgrants instead.
Some areas have a “mom and pop” nonprofit organization that sponsors these grants, so that might be a good place to start. You can also contact your local government directly for more information.
Sometimes, large corporations will offer grants (and other programs) for small businesses to help them get up and running. Sometimes, you have to keep your ear to the ground to know about these opportunities, but other high-profile grants get a lot of publicity. Here are just a few examples:
These are just some high-profile grant options with highly competitive applicants. That said, keep your eyes open for new grant offerings, even from smaller brands. For example, if there’s a company you like whose services you use regularly, you can watch for grant opportunities. Or better yet, inquire directly if they have any grant opportunities coming up.
Small businesses owned and operated by female entrepreneurs have plenty of opportunities for funding, at both the federal and state levels. Here are just a few resources to check out.
Veterans returning to civilian life and running a business can apply for several specific loans. Here are just a couple of the potential opportunities.
Learn more with our business grants for veterans guide.
Business owners who are members of different minority communities can find financial support through a variety of different grants across the country.
Part of the LBGTQIA+ business community? Here are just a few of the grant opportunities to check out.
You can also check out the U.S. Small Business Administration’s LGBTQ support page on sba.gov for additional resources and information on support groups and financial grants.
Black small business owners can take advantage of a variety of grant opportunities at the federal, state, and local levels. Here are just a few examples.
You can also check out the SBA’s minority-owned business page on sba.gov for more information on resources, funding, and support.
Members of the Native American business community can find a variety of different programs to financially support their small businesses. Here are just a few examples of grants available to tribal organizations.
Many of these grant opportunities are presented by state agencies in western states. We suggest contacting your state’s Department of Commerce for more information. You can also check out the SBA’s Native-American Owned Businesses page on sba.gov for more resources.
Members of the Asian American Pacific Islander (AAPI) business community can take advantage of several different grant opportunities.
You can also consult the SBA’s minority-owned businesses page for more resources and support.
Qualifying for small business grant programs isn’t always straightforward. It’s important to note that different grant opportunities may have different eligibility requirements, such as requiring specific types of business activities or United States citizenship. Make sure you read the criteria for each grant carefully.
New and existing businesses may be competing for these grants, and business owners often seek the help of grant writers to prepare their applications to increase their chances. The following list of grants is only a sample of available funding opportunities from government agencies and other sources.
The SBA is a government agency that provides support for entrepreneurship and small business development to strengthen the economy. The general requirements for SBA grants can be found on the SBA.gov website, which includes details of required accounting procedures, audit requirements, and more.
SBA-associated award programs include the following:
If your business will be engaged in research and development activities, you may wish to seek grants for that purpose. A few organizations that offer such grants are as follows:
If your business will export to foreign markets, there are grants for this purpose. Among these are the following:
In addition, the SBA has a page dedicated to funding resources for small businesses affected by the COVID-19 pandemic.
The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs are designed to encourage small businesses to engage in federal research and development with the potential for commercialization. The programs’ goals include stimulating technological innovation, supporting federal research and development needs, and encouraging entrepreneurship by women and the socially or economically disadvantaged.
To qualify, your business must meet program eligibility requirements, which include:
While SBIR and STTR have similar goals, STTR programs additionally focus on technology transfer between small businesses and research institutions. To learn more about these opportunities, visit SBIR.gov.
The U.S. Chamber of Commerce has been around for over a century with the goal of representing the interests of businesses large and small. The Chamber of Commerce represents the interests of businesses in Washington, across the country, and around the globe.
The Save Small Business Initiative was launched as a result of economic struggles related to the COVID-19 pandemic and is designed to help small businesses keep their workers employed and businesses running. Multiple funding opportunities exist through this program, and they can be found on their website.
They also offer a coronavirus small business resources guide to help with everything from adhering to local COVID-19 restrictions and adjusting budget and finances to save money to boosting your online presence and negotiating with creditors.
The Grants.gov program was launched by the federal government in 2002 to create a centralized location where those looking for federal grants could search for grants to apply to. The Grants.gov website has information on over 1,000 grant programs.
Using their website makes it easy to search and apply for federal grants through electronic application processes. You can easily search listings by specifying your search criteria to create a short list. Signing up for an account on Grants.gov is straightforward. Just enter your name and contact information, including an email address, create a username and password, and select whether to subscribe to communications. Once you have an account, applying is easy, and many of the forms used by the grantors are similar.
In addition, Grants.gov contains multiple educational resources to help you learn more about grant programs and eligibility and how to spot grant fraud. You’ll also find details about grant life cycles, general policies, grant-making agencies, and so on. There is even a get started checklist to help you stay on track.
The grants listed above are only some of what’s available. Many more opportunities exist if you know where to look. Ask around and consult with other small business owners to see what worked for them or how they were able to get funded.
Some additional grant sources include, but are not limited to, the following:
The grant application process may seem overwhelming, especially if this is your first time applying. Make sure before applying that you have established your business or have a clear business plan in place. This will help narrow your focus as to which grants you might qualify for and allow you to describe your goals more clearly when applying.
Some tips that might help increase your chances of approval include the following:
Applying for grants takes a lot of time, and no entrepreneur wants to waste their time on grant applications. But with the right approach, you could be set up for success. Here are some tips on how to apply for grants successfully.
With some legwork and determination, you can find the perfect grant for your business.
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How do you qualify for a small business grant?
Every small business grant has different criteria that you have to meet in order to be eligible. To qualify, you’ll have to meet those criteria and fill out an application. Often, a grant application will ask for your business plan, a picture of your business finances, and more, so be prepared to have that information on hand.
Additionally, if there are terms for how you have to use the grant money, be sure to uphold those requirements.
Do you have to pay back small business grants?
Unlike a loan, you don’t have to pay back a small business grant. It’s much like a student doesn’t have to pay back their grant to the financial aid office — only student loans have to be paid back. Grants (for both businesses and students) are gifted funds.
How do small business grants work?
Small business grants are like scholarships for businesses; they’re awarded to qualifying start-ups or small businesses so they can pursue success. To be awarded a grant, a small business has to meet the grant criteria and submit by the application deadline. After that, the grantor can choose to give the grant to their chosen applicant.
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Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.
Written by Team ZenBusiness
ZenBusiness has helped people start, run, and grow over 700,000 dream companies. The editorial team at ZenBusiness has over 20 years of collective small business publishing experience and is composed of business formation experts who are dedicated to empowering and educating entrepreneurs about owning a company.
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