Federal or state government grants to start a truck company – In today’s world trucking is a booming and thriving industry that is evolving with each passing day. Due to the rise in the demand for transportation of goods, individuals and businesses have increased their expectations and it is on the truckers to fulfill the rising demand. It is no doubt that without a trucking company, the country would come to a screeching halt. Therefore it is no better time to start a trucking company and if you are looking for funding options then this guide will throw light on different ways to get your new venture off the ground.
Highlights of this Post
What Are Trucking Grants?
Trucking grants are free monetary assistance from the federal government and private foundations that will help you to start a truck company, cover the necessary expenses, and secure the equipment to keep your company running. Unlike loans, trucking grants are free financial aid that need not be repaid, however they come with stringent eligibility criteria and it may be difficult to obtain these grants like conventional financing options. Professional drivers who want to start a new business venture or those who are looking to explore potential opportunities in the trucking industry will apply for federal trucking grants.
Also learn How to Start A Mobile Food Truck Business.
Eligibility Criteria And Documents Required For Tracking Grants
The eligibility criteria for trucking grants depends on a wide array of factors like demographics of the business owner, the state of operation, timing of business, number of employees, veteran status, and so on. Following is the list of general eligibility criteria which you need to fulfill if you’re applying for trucking grants to start a company.
- Your trucking business should be independently owned and created with its principal place of operation located in the United States or territories.
- Candidates should be a minimum of 18 years old or above to start a trucking company. They should be lawful residents of the United States.
- The trucking company is based in the United States and is selling goods or services for a specified amount of months.
- The trucking company should have employees stated by the program
- The company has all the permits, licenses and up-to-date registration and is in good standing with the grantee.
- Need to show they are in precise need of a grant to run their company
- Give detailed information about how the company intends to use the funds and how it can help in the survival and growth of the company.
While applying for federal grants to start a truck company you need to submit relevant documents such as the tax records from the previous three years, a strong business plan that contains the goals of your company and plan of action, the tax identification number, and other information requested.
How To Apply For Federal Truck Company Grants?
If you want to start a truck company of your own to cover the necessary cost of truck repairs, retrofit for lower emissions for fleets or to increase the number of employees then you can apply for a variety of truck company federal grants. Following are the steps to apply for the federal truck company grants.
- Search for truck company grants by using the database of Foundation Center grants or foundation center.org. Select ‘Find funders’ option and choose the foundation directory online. Accessing the database will require you to subscribe.
- Alternatively you can access the grants.gov website which is a free federal grant database where you can search for truck company grants by category, government agency, or category.
- Locate truck company grants through agencies like the Department of Energy, the Environmental Protection Agency, and the Department of Transportation. Go for a grant opportunity that aligns with your needs.
- Register for the DUNS number which will help to identify your truck company at the time of the application process. Use other details like tax identification number, business information, or address to apply for the DUNS number. It takes for a few weeks before following up in case you have not received the DUNS number.
- Download the grant opportunity from the grants.gov website and request an application form from private organizations to apply for truck company grants.
- The next step is to gather relevant documents and create a unique grant proposal. State your need for funding in the application procedure and how the funding can benefit your company. Try to connect your need with the area of interest for the funder. For instance, if the grant program is environmental then emphasis on the environmental impact of lowering the emissions for your trucking company.
- Apply to the government agency or the foundation. While the foundation will require an online or mail submission for the grant request, government departments will use grant databases like grants.gov for submission.
What Are The Available Federal Grants To Start A Truck Company?
With the right knowledge and effort, you can easily find tons of options to start a truck company and apply for grants.
SBA stands for the Small Business Administration which offers good opportunities to business owners including trucking entrepreneurs to secure a minimum of 5% of government contracts to small and new businesses. economically deprived or disadvantaged entrepreneurs can apply for a business development program to start their venture.
If you belong to a minority group, economically depressed population or low-income category then you can qualify for this program. It is important to note that government grants for truck drivers through this program will take complex paperwork and lengthy applications.
One of the largest trucking companies in the United States of America is FedEx. If you’re looking for ways to start a trucking company and launch your business venture then you can apply for the FedEx Small Business Grant Contest and win financial assistance up to $50,000.
The grant is not limited to truckers and everyone looking for ways to start their business or encourage them to apply for the program. Applicants are required to tell an inspirational and appealing story to qualify.
To qualify for the FedEx Small Business Grant program you need to comply with the following essential criteria.
- Be a lawful United States resident
- Must be 18 years old or above in age
- Must be permitted to take part in the completion of the company’s behalf
- Must run a company that is based and operating in the United States of America. Your company must sell goods and services for a minimum of six months with employees less than 100.
- Your trucking company or business has up-to-date registration, permits, and licenses and is in good standing
- Your company has a legitimate shipping and printing requirement
- FedEx has a shipping account for your business or company.
To apply, arrange all the details of your business including photos and logo, visit the official website, create a free FedEx shipping account, and begin the application procedure. Make a robust profile with a one-minute video where you can narrate your compelling story.
NASE stands for the National Association for the Self-employed which aims to support small and new businesses throughout the country financially. The grants offer assistance of up to $4000 to eligible candidates so that they can cover expenses like expanding their business activities, marketing or hiring new employees.
You need to be a member of NASA to qualify for assistance and also be a member in good standing. If you’re new in the trucking industry then joining the community and applying for grants will help to take your business off the ground.
The National Association For The Self-Employed requires the following eligibility criteria.
- Applicants must be an active member of NASA
- Showcase robust financial need to start their business
- Give details about how their company or business intends to use the grant funds
- Showcase how the grant funding will help the company to survive and prosper
- Providing supporting documents to determine the eligibility.
To apply visit any NASE Growth Grant website and complete the required forms.
Trucking entrepreneurs who have a long history of military service can apply for the Veteran Owned Business Opportunities. The Department of Veterans Affairs offers trucking business grants to eligible veterans and military service members.
The Department of Veterans Affairs maintains a Veteran Entrepreneur Portal that connects eligible candidates with grants that are designed exclusively for them. VR&E Self-Employment Track by the Department of Veterans offers financial aid to start a business and create a business plan for individuals who have suffered a disability as a result of their service.
Individuals who want to start a trucking company or business and belong to rural areas can apply for the USDA Rural Business Enterprise Grants program. The US Department of Agriculture assists qualifying truck drivers with grants that range between $10,000 to $500,000. The official website of USDA has a list of the rural areas which qualify for this assistance so check out the website before applying.
The eligibility requirements to qualify for a USDA Rural Business Development Grant are to be a part of a rural government entity. Requests are submitted to the state or local USDA Rural Development Offices.
Truck Driving School Grants
Individuals who are new to the trucking industry and are looking for ways to obtain certifications or licensing to operate their businesses can apply for school grants to cover the costs. There are Government Grant for CDL Grants For Truck Driving School. The training costs are expensive and many schools help individuals reduce their economic burden.
For instance, the federally funded Pell Grant offers grants to trucking students who are attending school. Every grant has its eligibility criteria and learning about the rules and guidelines before applying is important. You can learn What is Pell Grant, Eligibility and Application by visiting https://studentaid.gov/understand-aid/types/grants/pell.
Small businesses get assistance from NAV in the form of grants and affordable loans to take their business off the ground. NAV Small Business Grants assist small businesses including trucking entrepreneurs with financial assistance of up to $10,000. To qualify for this you need to create an account and tell your compelling story through the business Facebook page.
The NAV selects businesses for grant opportunities based on their background and compelling story. You will have a chance of receiving tracking grants if you can narrate more compelling stories. The eligibility requirements of NAV are as follows:
- Applicants must be a citizen of the United States or Canada
- The company of the applicants must be incorporated for a minimum of a year and has earned a revenue of $50,000 or less
- Applicants are self-employed participants and their main job emerges on their IRS Schedule C
- The company or business of the applicants has a legally binding agreement with the NAV to provide services and loan products
- Your company or business has no lines of credit or outstanding loans with NAV
- You have provided a written request and were approved by NAV
- You are not a banned investor under Canadian or U.S. Securities law.
The Local Initiative Support Corporation offers grants that range between $5000 to $20,000 for businesses and trucking companies. They give preference to veterans, racial minorities, corporate entities in underserved communities, and women-owned enterprises with limited access to funds and resources.
To qualify for Local Initiatives Support Corporation applicants must dwell in a community having a population of fewer than 50,000 people. The eligibility criteria to qualify for these grants are as follows
- Applicants should be a a a minimum of 18 years old
- Applicants must apply for one company
- They must belong to any one of these categories: business owners of color, veteran-owned companies, women-owned businesses, and other businesses that are in traditionally underrepresented regions of America that lack access to funding.
- Winners of the program have to prove that they are working towards a common goal within the community which has been greatly impacted due to the pandemic.
A popular grant funding program known as the Zero Emission Drainage Drug And Infrastructure Pilot Project Grant offers funding to new trucking business entrepreneurs. The grant offers funding to enable truck entrepreneurs to purchase environmentally friendly trucks as a part of their inventory.
The grant program is available and accessible to new business entrepreneurs or those looking for funding to get that trucking business off the ground. The program also covers business owners who are unable to purchase their trucks but have a registered and ready-to-launch business.
Another popular grant program that is specifically tailored to truck business owners or entrepreneurs is the EERE Funding Opportunity Exchange Grant which enables individuals to sponsor their trucking programs. Owners who have started their trucking business can apply for the grant program and get their new business venture off the ground.
More Grant Opportunities For Trucking Companies
A federally funded grant program known as Small Business Innovation Research offers funding to eligible small businesses and trucking companies for research and development. Trucking companies that are developing unique and innovative solutions to evolve the industry, for instance efficient operating systems for new technologies, are eligible to apply for an SBIR grant.
Eligibility requirements to qualify for this grant are as follows
- Applicants must run a small trucking business or company that is defined by the Small Business Administration and has less than 500 employees
- The trucking company should be owned and operated independently within the United States of America
- The trucking business should have the capacity and capability to conduct research and development.
Similar to the SBIR grant, the Small Business Technology Transfer requires companies and businesses to collaborate with research institutions like government laboratories or universities to qualify for financial assistance. If you own a trucking business that is developing new tools on technologies to support research institutions, you are eligible to receive this grant.
STTR grant for trucking business requires the following criteria
- Trucking businesses must be small businesses as described by the Small Business Administration and have less than 500 employees.
- The trucking business should be owned and operated independently within the United States of America.
- The trucking business must collaborate with a research institution for performing research.
Funding opportunities are provided to organizations including trucking companies by the Department of Energy Clean Cities Program Grant provided to the company or businesses working to reduce the use of petroleum in the transportation sector or trucking industry. Trucking companies that are looking for ways to improve their fuel sufficiency or adopt better and alternative fuel vehicles are eligible to apply for this grant. Alternatively, you can also apply for the Department of Transportation DOT Tiger grant
Eligibility criteria require trucking businesses or companies to
- Engage in the transportation of passengers or goods
- Demonstrate a strong commitment to reducing the consumption of petroleum
- Improve the overall air quality.
The trucking business should be anywhere in or near a participating clean cities pollution, applicants must run a small or medium-sized trucking business to qualify for this grant. To apply, you need to contact the clean cities qualification in your area and determine the criteria. You need to learn how to write a grant proposal to qualify.
Funding opportunities are provided by the Federal Motor Carrier Safety Administration Commercial Vehicle Safety Alliance Grant for supporting the enforcement of vehicle safety regulations and for improving the safety of vehicles including trucks. Trucking companies that are looking for ways to improve the overall safety of their business operation are eligible to receive assistance from this grant.
The eligibility criteria require trucking businesses or companies to be nonprofit entities or organizations operating commercial motor vehicles in the US or its territories, the program is designed to support small and medium-sized businesses mainly. You can find additional information on the application process and the eligibility criteria on the FMCSA website.
Eligible truck businesses and companies receive grants from the Department of Energy Fuel Cell Technologies for the research work and development of fuel cell technologies. Trucking companies looking to adopt alternative fuel vehicles are eligible to receive assistance at this grant.
The eligibility requires the trucking business to be a nonprofit or for-profit entity and must operate a commercial motor vehicle in the US or its territories. The grant application requires trucking entrepreneurs to demonstrate a strong commitment to incorporating fuel cell technologies and their business operations.
National Institute of Standards and Technology (NIST) Manufacturing Extension Partnership (MEP) Grant
Small and mid-sized manufacturing companies including trucking businesses can apply for the National Institute of Standards and Technology Manufacturing Extension Partnership Grant to improve their efficiency and operation.
You need to be a small or medium-sized manufacturing company with less than 500 employees and must engage in manufacturing goods like transportation of supplies and equipment to qualify for assistance. Contact the local MEP center to know more details.
FTA supports several grants to support the expansion and development of public transportation, even the trucking industry. Trucking companies looking to improve their infrastructure or services can apply for these grants.
The eligibility criteria require you to be located in the USA or its territories and must engage in the transportation of goods or passengers with a commitment to improve public transportation services, reduce dependency on single occupancy vehicles, and promote environmental sustainability and energy efficiency.
Other Sources To Start A Trucking Business
As you already know, grants for truck drivers can be very hard to find. However, the competition for these grants is quite high and the percentage of you getting selected can be very low. Also remember that these grants might not cover every expense to start a new business venture like purchasing latest equipment or hiring employees. We have listed some of other financial resources that can help you in starting your own business.
Business Loan Matchmakers
Free Loan Matchmaking services are very effective and will help you find lenders in your area. Those lenders are very likely to approve the loan application. The first thing you need to do is fill up the single application form and you will be matched with the lenders that can help you with loans. When you are searching for a conventional small business loan then this is the right place for you.
When you are a trucker you might face regular expenses related to fuel and vehicle repairs. The best thing is that the fuel cards are mostly accepted all over the country in most of the gas stations. Fuel cards are also known as fleet cards that offer rebates. The fuel cards are very valuable as they offer cents on the gallon and there are no monthly charges attached to it.
The SBA loans are very effective for the new business owner and can be considered as their best friend. The SBA loans offer different types of financial assistance for the truckers who are planning to start their own business. The best thing about these loans is they do not charge high interest rates and they have a generous repayment policy. Most of the common entrepreneurs opt for the SBA 7(a) loan program. This loan program offers up to $5 million in financing. Apart from that the SBA also guarantees 85 % of the loans up to $150,000.
How Getgovtgrants Can Help You Get Started?
I hope you already know that it is not easy to start a small trucking business. There are a lot of areas you need to focus on to make a business successful. You also need a truck management system to control and take proper decisions related to your business. There are activities like hiring employees, installing new equipment and managing road safety.
Finally when you get your truck then Getgovtgrants can help you to manage and control your new business. You will be able to focus on growing and expanding your business in the long run. We have already mentioned all the important information related to application of the grants. We will keep on updating information as it will help you to grow and expand your business in the long run.
Business plan To start a Truck Company
You need to create a business plan before you can begin looking for grants. You need to describe your company explaining what sorts of trucks you plan on using, whether state and additional information about your business. Include a marketing section where you will explain how you intend to advertise your organization. Your department should be followed by me. Although you intend to apply for grants, you need to explain what other capital you have. Describe how the corporation will be handled in an administration department.
Find A Truck grants Near me
Locating available grants can take some time and patience. Federal grants can be easily searched on the grants.gov website (see Resources section). Individual states have an office devoted to administering state grants together with a website that may be searched. Private grants are found through a variety of internet resources nonetheless, you might need to search a range of websites to locate all available personal grants. Grants are updated frequently, so make sure you check in case you don’t find one that applies to you.
Write a grant proposal
Most grants require that you write a grant proposal. The information will be different by intervention but contains a detailed explanation regarding you deserve the subsidy and how the money will be used. It isn’t required to employ a grant writer nonetheless, you may want to think about doing it. Writing a grant proposal is much more complex than it seems. Some professionals focus on writing grant proposals, and your odds of getting the grant may boost.
While several companies will help you start your trucking company and apply for Small Business grants, the Small Business Administration (SBA) is an excellent and free resource. The SBA can help you write your business plan, find funds and market your business (see the Resources section).
Grants for truck drivers to start their own business
There are many different Government Small Business Grants which can help you begin and prepare your truck company. The majority of these grants weren’t designed for the transportation industry but may be used for the initial costs of purchasing gear and your truck. Also, you might have the ability to acquire tender bids of the size that is adequate to get the initial financing you require.
Be a Licensed Truck Driver
The first step is to become a truck driver if you’re thinking about starting your truck company from the start. The truck driving school is treated just like any other trade school in relation. Pell scholarships, scholarships, and federal student loans can be obtained through the Free Application for Student Aid, through the “Workforce Investment Act” grants or other applications. The ideal place to begin is the truck school’s financial aid office you’re contemplating. Office staff will be familiar with the applications that students have used.
Specific Grants for truckers
The majority of the subsidies available especially for the transport industry are aimed at”green” initiatives, such as the”National Clean Diesel” campaign, coordinated by the Environmental Protection Agency. This program offers subsidies to road transport companies for a variety. However, oftentimes, these aids only help offset the higher cost of”greener” trucks and equipment but don’t provide adequate funds to cover the complete cost of a truck and its necessary accessories.
General grants For Truck Drivers
The SBA 8 (a) program isn’t a source of funds, but it can be beneficial for a new enterprise. If your registration application is accepted, you’ll receive guidance and tutoring, in addition to the mentor using connections that are useful for your search. This is applicable if you plan to receive a government contract and use it to cover your expenses. Also, the SBA has various loan programs available to its members.
Starting own Truck business with Federal government Grants is easy and beneficial for all the truck drivers. federal grants for truck drivers making truck drivers owners of their own business.
HOW TO SET UP A FREIGHT TRANSPORT COMPANY?
Investing in companies that transport goods by road can be a profitable business investment if the right steps are taken from the beginning. To complete this process, the sea freight must be assumed to have arrived at its final destination.
If the company responsible for the transfers is not the owner of the cargo (but provides a service to third parties), this is public freight transportation. This kind of company is not for everyone. A number of permits and requirements must be met, including those related to staff, vehicles, hiring, etc.
Regardless of whether the activity will be conducted nationally or internationally, meeting the required legal and administrative requirements is a prerequisite to launching a business of trucks. As a result, if your goal is to start a professional transportation company, keep the following tips in mind so that the company can get started without problems with permits or documentation.
How to start a Trucking or transportation business?
- Identifying the need of your business is the first and important part before starting a trucking business, You can choose between heavy loads, people, light vehicles, and food ,
- The company’s transportation plan may include the routes covered by its business model. To do this, you will have to carry out a competitive analysis and analyze your potential customers.
- Obtain the necessary means: the vehicles are required to begin the activity. Therefore, it is necessary to estimate the number necessary to cover the business and its costs.
There are various grants for businesses or entrepreneurs to start a trucking company. Moreover, there are additional advancement opportunities for trucking business entrepreneurs through additional grants from the federal government. Whether you have already established a trucking business or are looking for ways to purchase a new venture there are lots of financing options that will help you in terms of your needs.
Frequently Asked Questions
Are there any trucking grants to start your own business?
Yes, there are various types of trucking grants that help you to start your own business. However, you are required to follow the terms and conditions to qualify for the grant. There are grants like Nav Smaller Business Grants, FedEx Small Business Grant Contest, USDA Rural Business Enterprise Grants and many more.
Do I need to pay back the grant money ?
First of all you should understand that loans and grants are not similar. You are required to pay back the loans with interest whereas you are not required to pay back the grant money. You can use the grant money to expand your business without worrying about paying them back.
How much money is awarded in the FedEx Small Business Grant Contest?
The FedEx Small Business Grant Contest offers $50,000 to the winners. The money can be used to start your own business. The contest is not only limited to the truckers and therefore everyone can apply for it. You need to share a compelling story to increase your chances of winning the contest.
What are the benefits of trucking business grants?
There are several benefits of trucking business grants. It helps the small business to grow faster, you do not have to pay back the money and there are various opportunities to get hold of different types of grants.
What are the disadvantages of trucking business grants?
There are several disadvantages of trucking business grants as they are very time consuming and difficult to find. It takes more than a month to get your grant approved and they follow strict terms and guidelines. There is also a lot of competition of getting the grants and your chances of getting it is quite low.