Business Grants: A Comprehensive Guide
Introduction
If you're a small business owner, the word "grant" probably sounds like music to your ears. Free money, right? Grants are a bit more complicated than that, but they're definitely worth considering as part of your overall funding strategy. Let's dive in.
What Are Grants?
Grants are essentially free money that doesn't have to be repaid. However, they often come with strings attached, like reporting requirements or specific use cases. They should be part of a strategy to fund your company and are usually geared towards short-term, tactical goals.
Where to Start? Look to Uncle Sam
Government Grants
Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR)
Highly competitive programs encouraging small businesses to engage in Federal R&D.
11 Federal Agencies participate.
State and Municipal Grants
Typically offered through Economic Development or Community Affairs offices.
Other Government Grants
US AID, USDA REAP Grant for rural businesses, and more.
Key Takeaway
Federal grants require meticulous applications through the Grants.Gov website. Errors can get your application rejected faster than you can say "free money."
Non-Governmental Grant Organizations
Foundation Directory Online
Search for Foundations by various criteria.
Hello Alice
Small business grants are recommended based on your unique profile.
Big Database
Database of more than 25,000 foundations, corporate donors, and more.
Key Takeaway
Only 1% of foundations award grants through open RFPs. So, you'll need to dig deep and possibly subscribe to some databases.
Demographic-Specific Grants
Grants for Women
The Red Backpack Fund, Amber Grants, and more.
Grants for Women of Color
SoGal Black Founder Startup Grant, iFundWomen Visa Grant, and more.
Key Takeaway
Many grants are targeted towards specific demographics, so make sure to look for grants that align with your business profile.
Additional Grant Opportunities You Don't Want to Miss
Federal and State-Specific Grants
Incumbent Worker Training Grants
Offered through Virginia Career Works Northern Region, these grants help employers re-train their existing workforce.
InciFile's Fresh Start Business Grant
$2,500 for business startup costs plus free formation services.
Etsy Emergency Relief Fund
For Etsy business owners, in partnership with CERF+.
500 Global Flagship Accelerator Program
A four-month accelerator program based in San Francisco and a $150,000 investment.
The Freed Fellowship Grant
A monthly $500 grant and a two-month free membership in the Freed Studio.
GoFundMe Small Business Relief Fund
$500 matching grants for qualifying small businesses impacted by COVID-19.
Demographic-Specific Grants
Amber Grant for Women
Founded by WomensNet in memory of Amber Wigdahl.
The Kitty Fund
Micro-investments in Moms running employer-based small businesses.
Black Girl Ventures Grant
A pitch competition for Black/Brown female business owners with prizes up to $10,000.
Industry-Specific Grants
Meat and Poultry Processing Expansion Program
Grants for expanding processing capacity.
Higher Blends Infrastructure Incentive Program (HBIIP)
For increasing the availability of higher blends of ethanol and biodiesel.
Rural Energy for America Program (REAP)
For renewable energy systems or energy efficiency improvements.
Non-Profit Grants
Pollination Project
Grants to global non-profits with an annual budget of less than $50,000.
Patagonia Corporate Grant Program
Between $10,000 and $20,000 for environmental protection.
Deadlines and More
Hello Alice Small Business Growth Fund
Application Deadline: October 27, 2023.
Tory Burch Foundation's Fellows Program
Application Deadline: November 2, 2023.
Black Girl Ventures Grant
Application Deadline: November 10, 2023.
BONUS: Venture Capital, Angel Investments, and Loan Resources You Need to Know
Venture Capital and Angel Investments
37 Angels
Invests in early-stage startups from both women and men. Pitch forums are held every two months.
Accolade Partners
Specializes in technology and healthcare-focused venture capital. Raised $200 million to invest in funds started by women and minorities.
Backstage Capital
Invests in companies led by underrepresented founders. Over $7 million invested in 200+ companies.
Community Development Financial Institutions (CDFI) Fund
Provides loans, investments, and technical assistance to underserved populations and communities.
Fearless Fund
Financing for businesses led by women of color. Partners include Coca-Cola, Mastercard, and UPS.
Female Founders Fund
Invests in women-owned and women-run startups across various sectors.
Founders First Capital Partners
Offers "revenue-based investment" for service-based companies led by minority, veteran, or women founders.
Harlem Capital Partners
Invests in minority and women founders around the U.S. Fund II closed in March 2021 at $134 million.
Hivers and Strivers Investment Program
Provides capital to veteran-owned and veteran-led businesses. Funding ranges from $250,000 to $1 million.
Humble Ventures
Invests in diverse founders and organizations, creating solutions for diverse audiences.
Kapor Capital
Invests in diverse entrepreneurs. 62% of its investments go to companies with diverse founders.
MaC Venture Capital
Invests in technology startups leveraging shifts in cultural trends and behaviors.
Reign Ventures
Focuses on seed and Series A investment opportunities at companies led by women and minority-led startups.
Scale-Up Pitch Challenge
A pitch competition with a $50,000 grand prize. 2023 applications are now closed.
SoGal Ventures
Invests in diverse founding teams. Has invested in more than 70 companies.
Loan Resources
Accion Opportunity Fund
Provides small business loans ranging from $5,000 to $150,000 with interest rates as low as 5.99%.
Business Consortium Fund
Offers loan programs and consulting services. Over $5.8 million in new funding options as of 2022.
Business Warrior Small Business Loans
Provides between $5,000 and $50,000 loans without high rates.
Camino Financial
Offers startup loans, micro loans, and small business loans.
Latino Economic Development Center
Offers loans from $1,000 to $250,000 with interest rates as low as 6.5%.
SBA's Microloan Program
Provides loans up to $50,000. The average microloan is about $13,000.
Conclusion
Grants can be a valuable part of your funding strategy, but they require a lot of work and attention to detail. So, roll up those sleeves and start applying!