Small Business Grants for Entrepreneurs

Small business grants provide funds a business can use that don’t have to be repaid. Corporations, nonprofits, and local and federal governments may offer grants to small businesses. Grants may be available to certain demographics, such as being a woman-, minority-, veteran-owned business or in a particular industry.

Benefits of Grants 

So why should you consider applying for grants? First and foremost, grants do not have to be repaid the way small business loans do. Also, unlike when you work with investors, with grants, you don’t have to give up equity. You have full control of your business decisions and don’t have to share profits.

Drawbacks of Grants

The competition to get grants may be fierce and the process can be time-consuming. You may need to hire a professional grant writer to be awarded one, and you aren’t guaranteed to be awarded any grant you apply for.

Some grants may stipulate what the money can be used for, such as hiring employees or opening a business in an underserved area. Read the fine print before applying to be sure you can use the grant for what you intend.

Another drawback is that grant money may be small. If you need tens of thousands of dollars for your business, you may also need to explore your other financing options like loans or investors. And finally, be aware grant money may be subject to taxation.

Where to Find Grants

Now let’s look at where you can find grants so you can start applying for them. Start with grant databases like the following:

• Grants.gov
• GrantWatch
• OpenGrants.io

These databases list grants offered by government agencies, nonprofits, and private corporations. Some may charge a fee for you to use them.

Grants.gov focuses specifically on grants offered by federal agencies, like the Department of Agriculture, the National Endowment for the Arts, and the Department of Veteran Affairs, among others. There is a robust search feature, and the site is free to use.

GrantWatch provides details on grants for nonprofits and businesses. It has thousands of grants regularly updated, and there is a fee to use the service. Plans start at $18 per week or $199 per year.

OpenGrants.io offers two plans: with the free plan, you can search for grants and hire a grant writer, as well as access resources and guides. With the $29 per month plan, you can access the power search, get personalized matching, and take notes on grants.

You can also search online for grants in your industry or grants that are specific to demographics (such as if you’re a female who owns a business). Additionally, check local government agencies and corporations. They often want to serve local businesses and may offer grants as a way to support the community.  Your local Small Business Development Center can also be a useful resource.

If you know a major corporation that offers grants (or are curious to see if your favorite brands do), simply search [company] small business grant. For example, both Target and Sephora offer grants.

And finally, you can also look at professional organizations you are a member of to see if they offer grants. Entrepreneurial organizations are particularly known to provide grants to members. 

Examples of Small Biz Grants

Here are some grants you may want to apply for once you start seeking grant funds.

FedEx Small Business Grant Contest

Each year, FedEx awards 10 recipients a grant of $30,000 plus other printing and shipping perks from the brand. Entering is easy: you must provide a company bio and video on what makes your business unique.

Amber Grants for Women

If you’re a woman with a business, consider applying for the Amber Grant, which awards $10,000 to a woman-owned business each month. There is also an annual grant of $25,000. The application requires you to share your business dream.

USDA Rural Development Business Grants

If you’re considering opening a business in a rural area, you may be eligible for a USDA grant. These grants go to businesses that have projects that benefit rural communities. You can apply at your local USDA office.

Coalition to Back Black Businesses

For minority business owners, there are grants offered by the Coalition to Back Black Businesses. These grants are $5,000 and are available to businesses run by black business owners in an economically-vulnerable community.

Military Entrepreneur Challenge

Many veterans opt to start a business, and if you’re one, consider applying for the Military Entrepreneur Challenge. Not only do you have the opportunity to receive funds to support your business, but you also get to participate in speed coaching and a pitch competition.

Fresh Start Business Grant

Offered by Bizee, the Fresh Start Business Grant provides $2,500 for startup costs, as well as business formation services. The application requires a video stating how entrepreneurship will impact your life, as well as a sample business plan.

AARP Community Challenge

This quick-action grant offered by AARP provides funding to projects that develop communities that are more livable for people of all ages. There are several grants within this program, including Flagship Grants, Capacity-Building Microgrants, and Demonstration Grants.

Black Business Accelerator

Another grant opportunity for minority business owners that sell products on Amazon is the Black Business Accelerator. Recipients receive a $500 credit for new Amazon Professional sellers, as well as a three-year Sponsored Enhanced Digital Certifications for Black-owned businesses through SupplierGATEWAY. Winners also receive access to training, education, and marketing tools.

National Kitty Fund

For mothers who own businesses, there is the National Kitty Fund, which provides $1,000 to 25 businesses run by mompreneurs. The application requires a short pitch video.

The Halstead Grant

If your business is in the jewelry industry, you may be interested in the Halstead Grant, which provides winners with $7,500 and $1,000 in merchandise. To enter, you’ll need to answer 15 business questions and provide your design portfolio.

Tips for Getting a Grant

Once you start building your list of grants you want to apply for, planning will be key. Start your research early. Many grants have deadlines, so you won’t get them if you miss the deadline, and it may take you a while to gather everything you need to apply for some with more complex application processes.

Gather all the requirements you need to qualify, and eliminate any grants that aren’t available to you. Some grants may ask for details on the project you’re applying for, as well as information about your company. You may also need to provide a budget, financial statements, and mission statement. You might be asked for a photo of you as the business owner or of your business, so you might want to hire a professional photographer to help make your business shine.

Consider hiring a grant writer. Grant applications have a very specific style, and the right writer can help increase your chances of being awarded a grant. Grant writers are an added expense, but their increased ability to secure funds makes for a positive ROI! 

Don’t be afraid to apply to as many grants as possible. Some grants may only cover a small portion of the funds you need or have very specific terms of use. If you need additional money after exhausting your grant options, consider combining grant funds with other financing options like a business loan or bringing on an investor.

Use this article to start your grant research. Then, make sure you meet all the qualification criteria and carefully gather everything you need for a successful application. You might find that small business grants are the key to growing your existing business or making your new business dreams a reality!