Government Grants For Small Businesses In 2022
Daymond John, renowned Shark Tank investor, once said, No matter what business youre in, business is business and financing and money are critical.
Business financing is often a sore point for small business owners because it is difficult to acquire. Get a loan and pay high interest rates. Get an investor and reduce your equity. The gains of sourcing financing can be lost when the stakes are so high.
Thankfully, small business grants provide a solution that removes the risks associated with high interest rates and lost equity.
What Is A Business Grant
A business grant is a form of funding that doesnt need to be repaid. In other words, grants are essentially free money for your business. Grants, as you can see from the above list, can come from various places, including the federal or state government, large corporations, smaller nonprofits, private individuals, and more.
However, as you likely also gathered from our list of small business grants, there are typically several criteria that must be met to be eligible for a specific business grant. Grants are also incredibly competitiveâafter all, who wouldnt want free money? The uses of a business grant will vary depending on the specific grant, but may include helping you grow your business, retain or create jobs, or develop a new product or idea.
Jack Daniels Pitch Distilled
Jack Daniels hosts an annual pitch competition with the goal of inspiring entrepreneurs to surface the next big idea. Small business startups can apply and if accepted, theyll pitch their ideas at the Pitch Distilled event to a group of business owners. The winner of this pitch contest will win a $5,000 prize, plus advice and guidance from the panel of judges to help make their idea a reality.
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Small Business Grants: Here Are 23 You Can Apply For In 2022
Its a difficult time for small businesses affected by the coronavirus outbreak. However, governments at the local, state, and federal levels, as well as private companies may give out grants. Researching and applying for funding requires time and effort, but if you are successful in getting a grant, everything is worthwhile. Here is a breakdown of small business grants to get you started.
Author: Dale Cudmore
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Who doesnt like free money? Thats what small business grants are, right?
It could help you pay salaries, buy stock, or reach new customers.
While grants are free in the sense that you dont have to pay them back, theyre not handouts.
You cant just go to a website and ask for one small business grant please, and expect to get it.
You must apply for a grant, which can take a decent amount of work and effort. Then, youre up against other small businesses that also want the grant. Its common for even small grants to get hundreds of applicants. That said, a list of small business grants is a good starting point.
Ive compiled a list of 23 small business grants, but before I get to that, there are 3 more things you should understand:
Specialty Small Business Grants
Some organizations set aside funds for certain groups of business owners who face unique challenges, including minorities, veterans and women.
- Black Founder Startup Grant: SoGal Foundation, along with its partners, offer several cash grants that range from $5,000 to $10,000 to Black women and nonbinary entrepreneurs. To qualify, you must have a legally registered business, identify as a Black woman or Black nonbinary person and plan to seek investor funding to scale.
- The Veteran Small Business Award: The Street Shares Foundation hosts a pitch contest each year for veteran-owned businesses that have a social impact on the military community. If you qualify, you must create a pitch video and submit an online application. Applications are closed for 2021.
- The Amber Grant Foundation: The Amber Grant foundation awards $14,000 each month and $25,000 in December to women-owned businesses. While applying for this small business grant is easyyou only have to fill out a short formthe application fee is $15.
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What Are Small Business Grants And Who Is Eligible To Receive One
Small business grants are amounts of seed money given to entrepreneurs to build upon their business. Grant money is considered gifted,” and you are not required to pay it back. Sometimes, you may need to pay taxes on the amounts received, so please consider this and talk to a tax professional.
To secure a grant, you may have to do things like:
- Meet eligibility requirements
- Go through interviews
In exchange, you could be awarded financial resources to build your brand, team, and operations.
Government entities or private businesses establish most grant programs because they want to help others succeed.
Tip: Search grant databases, such as GrantWatch, to find available grants in your industry. GrantWatch is an online hub for more than 26,000 grants in the United States and Canada in which you can browse various funding opportunities easily by filtering your specifications.
Us Department Of Agriculture Grants
USDA grants focus on agricultural development in rural areas. Some of the government grants offered include:
- Rural Economic Development Loan & Grant Program
- Rural Energy for America Program Renewable Energy Systems & Energy Efficiency Improvement Guaranteed Loans & Grants
- Rural Microentrepreneur Assistance Program
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Why Are Government Grants For Small Businesses So Important In 2022 And Beyond
Government grants for small businesses are particularly important for developing a countrys micro, small and medium enterprises sector. Because these grants are funded by tax dollars, they have more restrictions than grants offered by private entities like FedEx and Cartier, as well as foundation grants like WomensNets Amber Grant.
Chief amongst these restrictions is an emphasis on how the money will be used to help the business make a meaningful impact in the community. Grants from the federal government were created to encourage businesses to be community builders and contribute to economic growth. A business that focuses on community development and innovation is sustainable and respected. This is the primary reason government grants for small businesses will remain relevant in 2022 and beyond.
Furthermore, many grant opportunities tend to reward innovation and scientific research. More grants tend to be offered in these categories because they give the country a competitive advantage. After all, it pays to stay ahead of the game.
Find more information on How to Start a Business here.
Targeted Economic Injury Disaster Loan Advance Grant
Certain small business owners applying for an Economic Injury Disaster Loan through the SBA are eligible for an emergency cash advance of up to $10,000. This advance can be forgiven by the SBA if you spend it on maintaining payroll, paid leave, increased costs, mortgage or lease payments, or other financial obligations.
Targeted EIDL funds are available to businesses in low-income communities that can demonstrate a more than 30% reduction of revenue during an eight-week period since March 2, 2020. Your business must have previously received an EIDL Advance for less than $10,000 to be eligible, or previously applied for an EIDL Advance but did not receive one due to a lack of program funding. The original EIDL Advance program, authorized as part of the CARES Act, is no longer active.
No action is required to qualify for a Targeted EIDL grant. The SBA will reach out to eligible businesses. If you receive an email about an SBA grant, make sure it arrives from an address ending in @sba.gov to avoid a potential business loan scam.
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Good For: Technology Companies
The federal research SBIR grant program is for entrepreneurs focused on innovations in technology that have the potential for commercialization. You can check its funding opportunities here. Focus areas from the past include clean and safe water, homeland security, land revitalization, green construction, advancement of health care, and more.
Department Of Education Grants
The US Department of Education offers grants that can be used for scientific research, state education, special education and more:
- Discretionary grants: Awarded using a competitive process
- Student loans or grants: Help students attend college
- Formula grants: Use formulas determined by Congress and have no application process
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Quick Tips For Getting More Grants
There are a lot of simple things you can do to improve your chances of winning grants. Most are easy to understand, but you need to make sure you keep them in mind.
Learn all about other useful ways to finance your business with our Small Business Financing Guide.
Heres how to get more grants:
- Always look for new grant options. Setting up a Google Alert is a good idea.
- Make sure the time spent to apply is actually worth the award.
- Read over the specific individual application instructions for each grant. Some are similar, but few are exactly the same.
- Double-check that you are eligible before spending a lot of time on an application.
- Provide specific numbers on how the grant will be used and how it will help.
- Double-check your spelling and grammar.
- If you can, submit your application early you may look more prepared than those who apply late.
- Back up claims with credible citations.
- Be realistic when mentioning your companys costs and revenue.
- Find a book from your library on grant writing if you want to write better proposals.
Georgia Hispanic Chamber Of Commerce
The ELEVATE TOGETHER program, powered by Round It Up America, is the manifestation of a nonprofit initiative dedicated to addressing systemic discrimination and historical racial disparities in business growth and profitability of black-owned businesses and those owned by minorities. A partnership between the National Urban Leagues Entrepreneurship Centers and the US Hispanic Chamber of Commerce is helping to support the development of disadvantaged businesses with five or fewer employees through this initiative. The ODP Corporation is the founder and sponsor of this initiative.
There will be six businesses that will receive a cash grant of $5,000 from the HCC. It is essential to note that as part of the Elevate Together program, you are also eligible for small business mentoring and a cash grant. To qualify for a cash grant, small businesses must complete a mentor orientation workshop, three mentorship sessions, business advice, and a coaching session before receiving funding .
Grant Criteria
- Black- and minority-owned small businesses with five or fewer full-time employees are eligible to apply.
- It is required that the applicant is a company with a majority Hispanic or Black entrepreneurs ownership and a valid EIN.
- Applicants must have operated their Hispanic/Black business for at least nine months before applying for the grant.
- Application requirements include participation in Georgia Hispanic Chamber of Commerce workshops or consultations.
Application Criteria
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Three Pitt County Businesses Receive Small Business Grants
- The Daily Reflector
Kori Brewer, above, of Claradele Pharmaceuticals, worked with Stefan Clemens of ECUs Brody School of Medicine to develop a therapeutic for chronic pain that reduces the risk of opioid dependency.
Three Pitt County businesses are among the 101 recipients of the One North Carolina Small Business Program grants, according to a news release from the governors office.
A total of $4.95 million was given to help advance the commercialization of innovative new technologies, the release said.
The One North Carolina Small Business Program, established in 2005, provides grants to companies that are pursuing or have won federal funding from the Small Business Innovation Research and Small Business Technology Transfer programs. The two programs are the single largest source of early-stage technology development and commercialization funding for small businesses, more than $3.7 billion annually nationwide.
The three Pitt County businesses are working in the health care arena.
Claradele Pharmaceuticals, located in Winterville, received $75,000 to develop a novel, small molecule immunotherapeutic therapy to be used pre-treatment to make more effective the current treatment of melanoma.
Epigenos Biosciences, located in Greenville, received $69,982 to develop genetic therapies to be used in the treatment of colorectal cancer.
Contact Ginger Livingston at or 252-329-9570.
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National Minority Supplier Development Council
The National Minority Supplier Development Council is a top corporate membership organization that offers business services and networking opportunities to connect you with investors and build your practice.
- Award amount: Varies
- How to apply: Visit the website for more information on offerings and one-off funding and grant opportunities.
Although grant opportunities run the gambit, access to the NMSDC’s roster of mentors and community small business advisors is top-notch.
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Fedex Small Business Grant Contest
FedEx hosts an annual small business grant contest that awards 12 small business owners money and insight from FedEx experts to help grow their companies. This grant contest is open to U.S.-based for-profit small businesses that have fewer than 99 employees and have been selling a product or service for less than six months from the start of the contest.
The amount of grant money awarded changes every year, but past winners have received $50,000 for first place, $30,000 for second place, and $15,000 for third place. Check the website for entry deadlines and more details.
National Institute Of Food And Agriculture
The National Institute of Food and Agriculture , a branch of the U.S. Department of Agriculture, supports research, educational and extension efforts in several rural areas related to agricultural and behavioral sciences. These fields include food science, animal life, farming and ranching, business and economics, and plant life.
The NIFAs grants consist of four phases:
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Where To Find Business Grants
Below is a list of some of the most robust resources for finding grants that can aid your business:
- SBA.gov is one of the top places to search for grants. The government site is filled with various grant and financing opportunities.
- Grants.gov is the ultimate database for federal grants. You can search for grants by funding type, eligibility, category and agency. Be forewarned: Sorting through the database will require some effort, but the potential payoff is that you may find a grant opportunity that is perfect for your company.
- The Economic Development Administration administers grants for economically depressed communities to stimulate new jobs and commercial growth.
- Similarly, Small Business Development Centers offer local resources that can help your business.
In the wake of the coronavirus, there are resources, including federal and private funding sources, that are helping businesses cope with the drastic economic contraction that is affecting the world.
- Economic Injury Disaster Loans are administered by the SBA and can provide businesses with working capital to pay employees, rent and other expenses.
- In addition to government loans, companies like Verizon have created funds that provide grants to small businesses.
Are Federal Small Business Grants Better Than Small Business Loans
It depends. Small business grants and small business loans each have their place in small business financing. Your choice depends on:
- How quickly you need the funds
- Whether you are working on a single project or multiple projects
- Ability to repay the loan
In an ideal world, a small business would be fully self-funded and self-sustained. In fact, this is the recommendation for startup businesses. However, there may come a point at which additional funding is needed to facilitate business growth. The table below explains the pros and cons of small business grants from federal agencies and small business loans, so you can determine which funding option makes most sense for your business.
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Capital Investors For Small Businesses
Capital investors refer to both angel investors and venture capital funds. Accredited investors can help provide funding for your business startup in return for equity ownership or convertible debt .
The biggest benefit to capital investors is that they can provide you with large sums of money in a relatively short amount of time. At times, they can also provide valuable mentorship as you work to grow your own business.
Learn more:
Business Grants Vs Business Loans
As discussed above, with a grant you do not have to repay the funds. However, if you have just launched your business or youre in the early startup phase, you may not be eligible for many grants. Another potential limitation with grants is that many grants have strict requirements concerning the grant application process and the grant proposal. If your application or proposal doesnt meet the specific requirements mandated by the agency, your request will be rejected.
If youre just starting out in business and its unlikely that you will be awarded a grant, you may want to consider finding a loan provider.
One advantage of a business loan is that you can secure the capital you need to meet your needs, whereas with a grant, the amounts are fixed and may not sufficiently meet your companys needs. Another advantage is that some lenders may have more relaxed requirements, such as a lower minimum monthly income or lower minimum time in business.
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