Business Funding Suite – Grants For Small Business

What are the top government grants for small businesses?

The federal government normally provides grants to nonprofits and educational institutions only. At times local governments may offer grants through specific departments e.g. for economic development. SBA.gov outlines in detail the full list of eligibility requirements, terms and conditions for Small business funding grants.

What are the major federal grants for small businesses and how to apply for them?

Small Business Innovation Research (SBIR)

and

Small Business Technology Transfer (STTR) programs

The mission of the SBIR and STTR programs is to entice federal and scientific research and development as well as technological innovation.

Both grant programs assist connect small businesses, universities and research with federal grants. For businesses to qualify the requirement is to be a for-profit entity with 500 or less employees. Nonprofits are not eligible.

The SBIR and STTR grant programs consist of three stages.

SBIR Stage I awards are normally between $50,000 and $250,000 for six months or one year,
and Stage II awards are typically $750,000 for two years.
Stage III is designed for small businesses to pursue monetization as a resulting next phase from Stage I and Stage II. The SBIR program does not provide funding for Stage III.

One of the grantors participating in the SBIR and STTR grant programs is The Office of Science which is a subset of the U.S. Department of Energy (DOE). It provides various funding opportunities for over sixty technical research topics and 250 subtopics, including but not limited to projects that support energy-production and -use, fundamental energy sciences, defense nuclear nonproliferation and environmental management.

National Institutes of Health

The U.S. Department of Health and Human Services, provides federal grants via The National Institutes of Health for small businesses that do research and development in biomedical technologies.

National Institute of Food and Agriculture

The U.S. Department of Agriculture, engages via its branch the National Institute of Food and Agriculture (NIFA) in research, educational and extension efforts in several rural areas related to agricultural and behavioral sciences. These categories include food science, animal- and plant-life, farming and ranching as well as business and economics.

NIFA grants have four stages:

Pre-award: This stage starts with the announcement of funding opportunities for grants and includes the preparation, submission and review of proposals related to those according grants.
Award: This stage is about making funding decisions and notifying awardees of their eligibility for such a grant.
Post-award: This stage involves setting up accounts in the financial payment system and monitoring awardees for compliance with applicable laws, policies and guidelines, regulations as well as the submission of required reports.
Closeout: The closeout stage consists of submission, review and approval of all final reports according to the specific program requirements, policies and regulations.

National Institute of Standards and Technology

The National Institute of Standards and Technology, a non-regulatory agency of the U.S. Department of Commerce, provides R&D grants for small businesses that specialize in advanced communications, neutron research, artificial intelligence, bioscience, and nanotechnology.

Environmental Protection Agency

The U.S. Environmental Protection Agency (EPA) grants over $4 billion annually to small nonprofit organizations and even large state governments achieve their environmental objectives. In December 2021 for example, the EPA funded clean diesel projects across New England with $4.6 million. The underlying nationwide grant distributed $77 million for new ideas that target diesel emission reduction.

Department of Transportation

The Volpe Center, the U.S. Department of Transportation’s (DOT) systems center, is a federal resource that accepts solicitations for financial aid. The organization seeks funding for proposals that deliver innovative systems for transportation.

Pandemic related government grants

In 2020 and 2021 small businesses suffered a lot from restrictions, lockdowns, supply chain interruptions, partial suspensions and other orders that lead to reduced or even wiped out revenue. The Small Business Administration has introduced grants via the IRS such as the Employment Retention Tax Credit (ERTC) that help businesses in hard-hit industries to survive. Unlike the Paycheck Protection Program loan, these grants do not have to be paid back.

Shuttered Venue Operators Grant

When lockdowns were put in place, virtually all event venues such as stadiums, concert halls, theaters and indoor performance spaces had to close their doors. As a consequence these small businesses faced existential crisis and a completely unexpected halt. But their their expenses did not stop. The Small Business Administration introduced the Shuttered Venue Operators Grant (SVOG) program to assist these businesses survive in times of unprecedented crisis. Eligible small businesses include theaters, live venues, talent representatives, museums and live performing arts organizations. Eligible businesses that qualify receive grants up to 45% of their gross earned revenue, with a limitation of $10 million. The Small Business Administration has also reserved $2 billion in SVOG funding for businesses with a maximum of 50 employees. Even though the program has officially expired on Aug. 20, 2021, for prior participants may apply for complementary grants up to 50% of their original amount.

Restaurant Revitalization Fund

Just as so many other businesses immediately lost most of their revenue sources during pandemic-related lockdowns, so did restaurants. The Small Business Administration also pulled off a grant program for restaurants. Through the Restaurant Revitalization Fund (RRF), qualifying restaurants can receive up to $10 million in Small Business Administration grant money. Although the program closed on May 24, 2021, the Small Business Administration is continuing to disburse funds to eligible applicants.

Targeted Economic Injury Disaster Loan Advance

Unlike the SVOG, ERTC and RRF grants, the Targeted Economic Injury Disaster Loan (EIDL) Advance program applies to any business regardless in which sector. The distinguishing requirement is that the business must be located in a low-income community. If businesses can prove that the pandemic related crisis resulted in a substantial loss in revenue, they may qualify for EIDL grants of up to $10,000.

How To Become Eligible For Small Business Grants Funding

grant vs loan

Small business grants are not any form credit, so lending institutions aren't expecting to be paid back. They're not financial investment funding, either, so grant issuers are not expecting to have their share of equity in your business. Business grants is funding provided by a structure, federal government body, or various other entities to help companies get going or roll out their operations. Due to the fact that they don't have the very same problems as other financing types, grants are typically preferable. Especially, grants do not need to be repaid like lendings do, as well as the small business owner does not require to give away equity in exchange for the grant. Yet that does not suggest that local business grants do not come with their specific requirements and expectations. A small business grant isn't entirely "free funding" either. Grant providers typically have terms concerning just how the cash can be spent, often even investing funds themselves on certain resources they think will assist your organization to take it to the next level.

Which Companies Are Eligible For The 50k Business Grant?

Is there a limit to small business grants?

There are hardly ever any type of restrictions on the number of grants for which you may apply. But each business can only apply once for a specific grant. In some cases, a program provides numerous grants each year. A lot of them enable business to send applications multiple times, however a couple of them do not. Check the grant details to discover these details.

Where To Apply For Funding For Small Business

Finding grants for small businesses

A lot of small business grants are sector specific, so it is a huge time saver to narrow down your search by focusing on grant issuers within your particular vertical. Whatever your specific industry might be, you may stumble upon a grant program dedicated to helping businesses in your industry outperform. Typically these highly-targeted grants are offered by industry organizations or private entities. Focusing on one industry also builds buzz around your business, which is good for branding and marketing. That alone might help build connections with industry figures who may be able to provide guidance and opportunities.

What Are The Business Funding Requirements?

Is the EIDL grant still available?

An Economic Injury Disaster Loan (EIDL) supports small companies and nonprofits that are shedding cash throughout the coronavirus pandemic which need funds for liabilities and overhead.

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