But we also know that small business grants can help a new business if it qualifies. Other ways of getting money for a new business, like venture capital, seed investments, and even crowdfunding, take a lot of time and work.
We’d put together some tools for people who want to start a business and are looking for a small business grant. Check out these five business handouts for which small business owners and people starting new businesses can apply. You may find something that works for you and your business.
Government grants
There are three government funds for small businesses: federal, state, and local. Most of the time, federal funds offer the most money and have the most applicants. They are also generally tied to a government body that clarifies what you need to do to get the money and what you should do with it.
On the other hand, state grants are generally less money and, based on your state, less competitive than federal funds. The federal and state governments may work together to handle money set aside for small business funds.
Local funds are usually smaller but may be easier because human ties still matter. Most of the time, these grants are meant to help your town or county, so if your startup or small business is meant to help your town or county, you should look into local grants. There are government grants for small companies that specific agencies give out, but there are also grants that particular groups give out.
If you want to find a grant that fits your startup the best, you should search the Grants.gov database to see what’s available and what fits your company the best. You should also check back occasionally since government handouts for small businesses often end or are added.
When looking into government funds, you should also know that the Small Business Association, or SBA, handles a lot of grant handling. The SBA doesn’t handle the money from partner organizations, like community funds. Instead, they act as a go-between for the government and partner loan organizations.
Grants for veterans
Grants for soldiers are more complex than government grants, even though the government pays almost all of them. This is because grants are usually only available for a certain amount of time, after which the money can no longer be used. So it’s impossible to list business grants for soldiers because they might still be available when you read this.
But that doesn’t mean there aren’t good ways for vets to get money, like handouts. For example, in addition to all the federal and state loans available to small companies and startups started by veterans and non-veterans, the federal government runs a few loan programs just for veterans.
There are also personal financing and training programs for soldiers who want to start their businesses or get better at what they already do. Veterans who want to start their businesses have a lot of great choices, including, but not limited to, funding.
Grants for women
Women getting business funding is a hot topic, and it’s easy to see why. Kaufman’s study shows that women comprise 40% of first-time businesses in the United States. Even more impressive? In the U.S., the amount of businesses owned by women is growing twice as fast as the number of businesses owned by men. The number of women starting businesses and new companies in the U.S. is at a record high.
But women don’t make as much money as men do from these businesses. In startups, only 2% of V.C.’s money went to women owners in 2017. So, if a woman wants to start a small business or a startup, she must find money elsewhere. Since getting money from that source is so hard (some even say impossible), many women who start businesses are looking for handouts for women.
Women-only startups and programs are another way to get money when people look for business funding for women. Incubators and accelerators provide funds, a place to work, mentoring, and a group in different ways.
Even though most women-only startups and accelerators are in big cities, it’s worth looking for them in your area because this field has grown significantly in recent years. The tech business might be starting to realize the importance of including women.
We also have a list of government funds for women and directions on how to look on government sites. We’ve also included private small business funds for women. These investors want to put money into startups started by women, crowdfunding sites and stock financing platforms that only work with women, and schools and programs that only work with women.
Grants for immigrants and minorities
Even though immigrants and other minority groups don’t get a lot of small business handouts, they do exist! Refugees may have more choices for small business grants than other groups. The Minority Business Development Agency is also part of the federal government. It helps women and people of color grow their companies. They give out grants often, so you should check them out.
Grants for nonprofits
Non-profits know the most about funds. Because, as the name suggests, non-profits have no other way to make money. Because of this, there are a lot of funds out there for non-profit groups. Most grants are only available for a limited time, so GrantWatch.com is a great way to find funds for your non-profit organization. Along with low-interest loans as well as additional financial and training help, the Small Business Association also gives funds to nonprofits.