Many entrepreneurs, especially small business owners in many countries felt the impact of the Corona virus outbreak. Each business is now having a problem financially. Good news! You can still save your business by applying for these grants. Today, let me help you explore what business grants fit for small businesses worldwide. You will also learn how to know if a business grant is legit or not and how to avoid falling prey to online grant scammers. I also pointed other easy ways you can raise money for your business startup.
Difference Between Business Grants and Loans
It’s very good you know the key difference between business grants and loans so that you know exactly what you are applying for. Business grants are forms of aid from organizations to assist young entrepreneurs establish or expand their firm without having to pay back. There are few exceptions where grants are to be repaid. On the other hand, business loans are meant to be paid back with interest within a specified period of time.
The main aim of the organization giving you loan is to make profit at the end of the deal. But it is not so for grants, it is a business gift, mainly for young graduates. Also, because grants are not meant to be paid back, they are most times smaller than loans. As long as you have the required collateral, you can have access to any amount of loan you need to start up or expand your business.
Here are the 5 categories of the best worldwide small business grants.
1. Local Small Business Grants
There are statewide government grants that could help you. However, you can also apply for local small business grants. You are eligible for this if you serve your community demonstrably and tangibly.
Small businesses that promote environmental, health, or other related initiatives can apply for funding for your eco-friendly business. Local small businesses are geographic. That’s why we listed a few kinds of grant opportunities that may exist near you. Make sure you will look for similar programs in your local area.
- Cleveland Department of Economic Development
- Job Creation Tax Abatements
- Salt Lake City River District Gardens Facade Improvement Grant
- Tech Delta Grant Program
- Ben Franklin Technology Partners
- Chicago Small Business Improvement Fund
- New Mexico True CoOp Program
- Miami Mom and Pop Small Business Grant
- New York City Fashion Manufacturing Initiative
- Orlando Downtown Commercial and Residential Building Improvement Program
- Centers for Advanced Technology Grants in the Buffalo Niagara Region
- Land, Health, Community Grant
- Southeast Michigan Resilience Fund
See:
- 125 Inspiring Business Quotes & Advice from Successful Entrepreneurs
- 12 Best Ways to Raise Funds & Save Money for Young Businesses
2. Corporate Small Business Grants
The requirements for government grants for small business are often hyper-specific. For example, you are looking for a Bank of America routing number. Also, the amount of funds is not that large. Corporations can provide small business grants to contest winners.
Corporations grow because of PR, loyal corporate clients, and goodwill. This is far beyond how we know that business grows just because of money.
Most of the time, small business grants sponsored by corporates involve competitions. You need to be aware that when applying to a corporate grant, you will be engaged to greater responsibility as well as potential publicity. Here is the best corporate sponsorship you can further discover:
- Intuit National Association for the Self-Employed (NASE) Grant
- Comcast Innovations 4 Entrepreneurs
- FedEx Small Business Grant
- Visa Everywhere Initiative
- Kuvio Creative
- Wells Fargo Community Investment
3. Small Business Grants for Veterans
Small businesses owned by Veterans can receive business grants from nonprofits, government agencies, and corporations as well. You can inquire in the SBA office who owns many programs that offer help to the veterans such as:
- StreetShares Veteran Small Business Award
- SBA Office of Veterans Business Development
- Warrior Rising
4. Small Business Grants for Startups
If a small business operates for just a few years yet has an established product or services, there are grants open for it. Mostly, it is a newly opened business that needs financial assistance or loans. Below are the grants you can check out for your small business startup:
- ActivityHero Business Grant
- Jack Daniel’s Pitch Distilled
- 4.0 Schools Fellowships
- Fundera’s Zach Grant
Check:
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5. Alternatives to Small Business Grants
Over the business loans, there is one significant benefit in small business grants. It is that you don’t need to pay back the grant. Because a loan needs to be paid back with its interest. And being a new or small business, it is often hard for your financial situation.
However, if things don’t work according to plan, and you were not able to qualify for a business grant, there are financial alternatives that can help you. Here are various loan options you can consider if you are not able to get a grant to fund your small business:
- Microloans
- SBA Loans
- Crowdfunding
- Business Credit Cards
How to Secure Business Grants?
An excellent way to fund a small business is to apply for a business grant. It is interesting to know that entrepreneurs have free money, starting a business when they are getting their business off the ground.
And yes, it is not easy. Searching and being qualified for grants requires perseverance. And once you are there in getting the grant you worked for, you must secure it. There is one way to do so.
Also know that there are few info you need to provide when applying for a business loan. Some of them include:
- Age of business
- Your business monthly revenue
- The intention for applying the loan (startup or expansion?)
- Your Employer Identification Number (EIN)
- A well written business plan, etc.
Be aware
Do not become prey for the internet scammers when searching for business grants. Mostly, there are 10 fake websites which will target to get the attention of a small business owner and will promise for fast, free, and easy money.
First and foremost, you as a small business owner must not pay for the information of a grant. Details that most of you are looking for are free and available in public. When asking for money to process your application for the grant, DO NOT bite on its false actions no matter the source. They may have access to the same information you get.
Check:
- 12 Best Lucrative Agricultural Business Ideas – Beginners Guide
- 8 Best Lucrative Online & Offline Business Ideas for Students
Rise Up and Pick Up your Business Hand in Hand – Wrap Up
There are various types of business grants available worldwide for your small business. Applying for a small business grant to government agencies may consume lots of time. What you can do is inquire to private corporations who can lend help for your business.
Along your business journey, qualifying for a small business grant is excellent. But you can also use alternative ways to fund your business if you are not able to be eligible for a grant. The main point here is when processing a money-related transaction, be cautious, and don’t trust quickly, especially when doing transactions through the internet.
What can you say? Do you have more to ask? Leave it in the comment section, and we will be doing our best to help you.
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