Did you know that there were 30.2 million small businesses operating in the US in 2018?
Small and medium-sized businesses are popular all around the world. For example, in the UK there are 5.9 million small businesses. If you want to start your own business, you need a killer business idea and money to get started.
Keep reading to find out about the different types of grants available to help kickstart your business.
What Is a Grant?
Grant money is given to a person, business, or corporation from local, county, state, or the federal government. It can also be given to a person or a business through a private business or corporation.
There is a range of different grants for a variety of specific business owners. For example, under-represented groups, women, veterans, and those with disabilities. Usually, there’s a set of requirements that you must meet in order to be eligible for the grants.
Do You Pay Back Grants?
Unlike business loans, grants don’t need to be paid back. Grant money for businesses can help with the initial set up costs, growth, and expansion of a company. This is why grants are an attractive financial option for entrepreneurs and small businesses that have little funding.
What Types of Grants Are Available?
You can secure grant money to start a business from many different schemes or businesses. The amount of money you can receive varies on the grant and the funding the government or business has.
These are the main types of grants that your business might be eligible for:
1. Federal Grants
Federal grants often focus on specific industries, such as technology, conservation, and scientific research. You might also be able to find federal grants for educational institutions, nonprofit organizations, and local governments.
Federal costs are for research and development, as opposed to covering business startup costs.
2. State Grants
If you can’t find a federal grant that is right for you, then you could look at state and local grants. The Economic Development Administration (EDA) is an agency that offers grants, resources, and technical assistance to small businesses and entrepreneurs.
You could also look into your local Small Business Development Centers (SBDCs). SBDCs can offer support to businesses and help them connect with financing, mentors, and networking opportunities.
3. Demographic-Specific Grants
If you’re a woman, veteran, or a minority business owner, you might be eligible for a demographic-specific grant. These underrepresented business owners can find a variety of grants funded by the U.S. Small Business Administration (SBA) or corporations.
You can also get innovation grants, which can help to reduce the upfront costs of your innovation projects.
Find Your Ideal Grant From Our Guide on the Different Types of Grants
Use our simple guide of the different types of grants for small businesses to find your ideal grant. Once you’ve found a grant that you’re eligible for, you need to apply for it and hopefully, you’ll receive the money that can help your business.
If you enjoyed reading this article, make sure you check out our other startup, entrepreneur, and finance articles.
