Starting a new business is something that most people find it hard to handle. It becomes a great challenge, especially when you lack the required capital to start the business and keep it running. However, you can still make your dream a reality with the help of startup grants.
Small business grants are the most convenient ways through which you can get your business up and keep it running. But what are grants, and how can you get them? Worry no more! Here is the right answer.
What Are Startup Grants?
Startup grants refer to the money that non-profits and small companies get from various groups. With this money, small businesses and non-profits can run their work successfully. However, there is a vast difference between grants and loans.
For small business grants, you don’t have to pay back late interest or fees as for the case of small business loans. Also, there is no putting up collateral for startup grants, as seen when it comes to small business loans. Generally, small businesses and non-profits don’t have to repay the issued grants at all. Thus, you can grade grants as free money.
In most cases, those applying for startup grants are after getting funds to start projects that have specific parameters and measurable returns. However, grants come with limitations, something which you cannot experience with loans.
This limitation covers how you will spend the money, the time to use, and the field where you need to invest them. As a result, this remains to be one of the most common challenges that startup owners always come across.
The Business Owners And Types That Qualify For A Startup Grant
You cannot use government startup grants to start a business, cover operational expenses, or pay off debt. Also, you can get government startup grants if you run a non-profit organization, or you plan to launch a project that falls in that field. Here, the project needs to fall in non-profit areas like education, science, or medical research. Thus, it means that you can’t get government grants if you run an organization that’s different from these.
Therefore, startup small business grants are the best source of funds for non-profit organizations, innovators, women businesses, rural businesses, green businesses, and minority-owned businesses.
How To Apply For This Type Of Startup Funding
Obtaining startup small business grants is not an easy process as you may think. However, there are some crucial things you need to put across so that you can increase your chances. Before sending your request, you need to understand that grant-makers always award this startup funding to only the award-winning applications. Thus, there are some things you need to bear in mind so you can come with award-winning application proposals. These include:
- Giving a clear outline of your objectives. Also, you need to have a realistic budget and a well-structured business plan
- Stating measurable goals. Here, you need to include both short-term and long-term quantifiable objectives
- Ensuring that your application includes outside experts. For example, a consultant or an accountant helps a lot in adding credibility to the application process
It is essential to ensure that you have a complete and accurate application. Also, be specific on how you will use the funds.
I hope now you know the meaning of startup grants, the right businesses to apply for this startup funding, and how to come up with an award-winning application? If yes, then let’s now look at a few examples of organizations from where you can get a startup small business grant.
Where To Get Startup Grants?
Here’re some ways to get different types of grants.
Small Business Innovation Research Program
The SBIR offers startup grants for any small business that carry out research and development project that has commercial potential. Their grants range between $150, 000 and $1,000,000.
Grants.gov is a one-stop-shop for all business grants offered by the US government. Most of these grants go to the non-profit and businesses under the field of R&D, science, and medicine.
National Science Foundation
Non-profits and businesses can get startups grants that run up to $1,500,000 from the National Science Foundation. The organization issues these startup grants with zero percent equity.
Community Grant Program
Community Grant Program offers grants to the organizations that run a project that will help the community. This help needs to be in the form of clothing closets, food pantries, and soup kitchens.
Spark Communities Program
Non-profit organizations can get grants starting at $500,000 from Spark Communities Program. However, you don’t have to apply since this program invites those who need to send their applications.
Women who run non-profits and businesses can get up to &1,000 every month from Amber Grants. Also, the organization offers a grant $10,000 to a 12-month qualification winner.
National Institute Of Food And Agriculture
This organization is a branch in the Department of Agriculture that supports projects related to research and development in the field of agriculture.
National Institutes of Health
The National Institutes of Health is an organization that offers grants to non-profits and businesses with projects related to research and development in the field of biomedical technology.
G-Startup connects new businesses as it searches for the best innovative ideas where it can invest in. The winner can get a grant of up to $1,000,000. Also, they get a chance to become members of the global community of G-Startup.
The 2501 Program awards business grants through the USDA, and they always go to ranchers, veterans, farmers, and minorities. They want to ensure that these groups make use of the new technology to come up with projects that are of great help to the community.
Don’t lose focus if you cannot get the startup grants. Remember, there are several ways out there you can opt for, which can also help you in achieving your goals. Every grant is highly competitive. Therefore, it is essential to take your time before sending your application request.
Obtaining startup funding helps a lot in making your business dream a reality. As a result, it is essential to fund a particular part of your organization through private investors or loans. Here, these investors can help you while working towards your short-term and long-term goals. However, you need to note that you can’t get with startup grants in all cases. Thus, it is vital not to let this startup funding to be one way of making your business dreams a reality.