Have you thought about applying for small business grants? If you have, then you’re certainly not alone. Millions of dollars in free grant money is available to US citizens through various grant programs. However, there are so many things to think about when pursuing this kind of funding for your business, too.
You have to qualify for a small business grant. Now, this is very different than a grant for a business that’s already in operation. This sort of funding is provided “on the spot” and it requires as few as 3 requirements in order to get it. It’s also not a good idea to apply for this money if you don’t have an existing business – these applications are routinely rejected. Also, it’s important to note that free grants for small businesses can often be supplemented by other traditional financing options, like a personal loan, small business loan, or a small line of credit from your bank.
So, what are the common types of free grants for small business grants? Many people start out with what’s called a “micro-grant,” which is simply a form of loan. (If you ever see an advertised “micro-loan,” it’s likely being used in this fashion.) These are good loans, as long as they’re used for the purpose of starting up a business that will later receive a grant.
There are several other ways to obtain free money for business loans, grants, and other ventures, but most people are familiar with the typical federal and state programs. To qualify, there usually aren’t stringent requirements in place. In some cases, certain types of grant recipients may need to demonstrate an unusual financial need, but the requirements for these grants are very minimal. Also, the interest rates for these grants are typically quite low, as well, making them a great option for people who don’t have good credit or strong business plans.
The other option is to turn to private, non-profit organizations. The most popular type of private organization providing small business grants is there Carnegie Foundation. This foundation was established in 2021 to help small business owners along with women to start and expand their companies. To qualify, applicants need to demonstrate that their company is at least 20% owned by a woman. As long as the company meets these requirements, it should be able to obtain federal grants for capital needs.
Other private foundations providing small business grants are the Silicon Valley Community Foundation and the California Women’s Foundation. These organizations partner with local businesses, government agencies, and community groups in order to provide businesses with the funding they need. The eligibility requirements for many of these grants are minimal as well, so there’s no need to submit a complete business plan to apply. The grant funds are, however, based more on the ability of the business to contribute to the local economy than the profitability of the venture itself.
There are also a number of very generous private foundation grants to be found, but it’s not as easy to find these grants as it may sound. The best way to get access to these free grants is to look online. There are dozens of grant websites out there that can help you search for and apply for government money for small businesses. There are also a number of different types of grants to choose from, including tax credits, real estate investment grants, and more.
Once you find the grants you want to apply for, you’ll want to carefully read all the eligibility requirements. Each grant will vary in how much funding they give out, but some requirements are common to all grants. For example, there are grants out there for women-owned businesses, for minority grants, for first time homebuyers, and more. If you meet one of the specific grant criteria, then you have a good chance of being approved for the funding you need. It’s important to read through all the fine print when it comes to the application process for small business grants, because there are often eligibility requirements that must be met before the government will even consider your request.
