As civilization keep progressing drastically day-in day-out, small business organization are made to lag behind. To prevent these, there is need to get grants from sources which would serve the purpose of financing such small business.
Are you an owner of a small business organization that needs to bid for grants from government, financial institutions, NGOs, and others? This article would expose you to the factors you need to consider before shooting your shot.
What are Small Business Grants?
Small Business Grants provide free money for startups and existing businesses that are on the hand of collapsing. It also includes the funds set aside by individuals, groups or government for any organization that is affected by any form of pandemic such as the recent Covid-19 pandemic. It can take a lot of time and effort to research and apply for funding, but once you know what it takes, you are already on the verge of getting considered.
Types of Small Business Grants
1.Coronavirus Small-Business Grants
In the United States, the Small Business Administration introduced a new coronavirus grants program for small businesses across the country as part of the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act etc. Examples include;
a. Shuttered Venue Operators Grants: Provides an amount up to $15 billion to operators of live perfuming arts and movie theater and other shuttered venues. The qualification for this is that such business must have been in action as of February 29, 2020.
b.Targeted Economic Injury Disaster Loan Advance: Provides a sum of $10,000 for small businesses in area characterized by low income and also experiencing loss of customers and revenue due to the covid-19 crisis.
c.Restaurant Revitalization Fund: Provides a sum of $10 million to Restaurants and other food enterprises owners due to the loss in revenue at the period of the pandemic.
2.Federal Small-Business Grants:
These types of grants are organized by government agencies so as to support a great deal of enterprises from environmental conservation to child care services.
These types of grant are intimidating due to the processes involved and the scrutinizing factors but it is the best opportunity for small-business owners that wish to grow in their respective industry. Example include; grants.gov, USA.gov and the SBIR and STTR grant programs.
3.State and Regional Small-Business Grants
These types of grant are organized by state and region government agencies. Some of these grants include; The Economic Development Administration which is organized by the U.S. Department of Commerce for communities in order to enhance economic growth and encouragement of innovations and entrepreneurship. Another example is the Small Business Development Centers which gives support to small businesses and aspiring entrepreneurs.
4.Corporate Small-Business Grants
This type of grant is organized by large corporations or business organizations to help other small-business. Example include; FedEx Small Business Grant Contest which gives annual award of $200,000 to 12 small businesses in a competition. It also gives a sum of $50,000 to the grand winner. Another example is the National Association for the Self-Employed which gives its member the privilege to apply for a sum of $4,000 and an annual $3,000 college scholarship for members’ dependent.
5.Specialty Small-Business Grants
Specialty Small-Business Grants provides grants for a specific set of people in the community. Such as small-business grants for women, small-business grants for veterans, and small-business grants for minorities, among several others.
: Most Important Factor needed before bidding for a Grant
Grant qualifications may vary depending on the organization that organize it. Some organization or governmental agents may give priority to business organizations that are operating in the rural area or in locations where the income in relatively low.
Some organization also consider businesses run by women or the less-privileged or a disabled individual and lots more. In short, criteria for consideration depend solely on the requirements of the awarding organization. Once you see any announcement on grants for small business, your responsibility is to properly read the grant’s eligibility requirements so as to know if your business qualifies before applying for such grant.