Federal or state government grants to start a truck company – In case you’ve made a living driving a truck for quite a few years, you may have decided that starting your own truck business might be an outstanding financial movement. Your income could boost the expense of beginning it could be significant. An alternative for initial funds would be to find and apply for grants which could help you raise the capital required to start your company.
Highlights of this Post
Trucking Grants For Truck Drivers To Start Their Own Business
Today in this article we are going to provide information on 7 Trucking Grants For Truck Drivers To Start Their Own Business. I hope you already know that trucking is one of the industries that is currently thriving and has survived almost everything. The demand for transportation of goods is always higher and it has accelerated a lot during Covid-19. The businesses and other organizations have highly increased their expectations and the truckers are responsible to meet their upcoming demands. Trucking companies play a huge role in fulfilling the demands or the nation would not be able to survive the pandemic. It is always wise to start a trucking business. We will be discussing some of the trucking grants that can help you to start your own business. What are you waiting for? Scroll down to know more about it.
What Do You Mean By Trucking Grants?
You must be wondering if it is possible to start a trucking company without any money. The answer is “Yes”, it is possible to start your own trucking company. There are a lot of financing options to start your own company. The best thing is to look for trucking company grants as it will help you to cover the necessary expenses including equipment and registrations. You should also understand that it is not necessary for you to start a business with high capital.
The best thing about these grants is that they allow professional drivers to start their own business by simply getting a truck. There are also other grants that are designed for owner operator truck drivers to expand their business. You should understand that these are not loans, these are grants and you do not have to pay them back. But you should also note that these grants are very hard to find and involve conventional forms of financing.
7 Grants To Start a Trucking Company
It is very important for you to find the right sources to get trucking grants to start your own business. The professional drivers who are looking to start their own business venture might see potential opportunities in the industry but unfortunately they eliminate the idea of grants.
So, it is important to get the right knowledge and you will find a handful of grants that are useful to start your own trucking company. The best part is that the grants give you an opportunity to start your own trucking brand without any debt from the first day.
Nav Small Business Grant
Nav is the first program in the list that offers grants and loans to various small businesses and entrepreneurs. They offer grants up to $10,000 to those who apply for the Nav grant program. All you need to do is create a free account and share your story on their facebook page.
It is quite similar to the FedEx program, Nav generally selects small businesses on the basis of their background and story. If the story is compelling, you have a better chance of receiving the grant amount from them.
Trucking School Grants
When you are looking to start a trucking business the first thing you need to obtain is licensing and certifications so you can operate without any worries. As you already know that training costs you a lot of money but the good thing is that there are some schools that offer grants to the people so that they can retrain themselves.
One of such grants is the Pell Grant that offers grants to the students who are willing to attend the school. However, each grant has their own set of eligibility requirements. So, it is important for you to go through the rules before applying for the grant.
USDA Rural Business Enterprise Grants
There are a lot of truckers who reside in rural areas but they still have access to various types of grants that are offered by the U.S. Department of Agriculture. However, you need to come from a qualifying area so that you can easily apply for these government grants designed for the truck drivers.
The grant money varies from $10,000 to $500,000 but you should keep in mind that when you apply for a smaller grant request then it is likely to get approved. It is important for you to apply for the amount of grant that is required. To check more details you can visit the official USDA website and get all the required information.
Veteran Owned Business Opportunities
If you have a history of military service then you can easily qualify for trucking business grants that are offered by the Department of Veteran Affairs. A veteran entrepreneur portal is maintained by the Department of Veterans Affairs that helps the veteran to get connected with the grant opportunities that are offered to them.
However, you should note that each grant program follows a different set of rules and guidelines. But most of the grants are quite similar. When you are disabled because of your service the Veterans Affairs offers all the basics to start a business and they will also help you to create a business plan.
NASE Growth Grants
NASE stands for The National Association for the Self-Employed and its main aim is to support small businesses so that they can grow in the long run. The grant amount that is offered goes up to $4,000 and the money can be used for various activities like marketing, expanding and hiring new employees.
However, the main requirement for it is that you need to be a member of NASE to qualify for the grant. When you are a newbie entrepreneur then this grant is going to help you a lot in building your own business. To know more you can visit their website and collect all the information from there.
FedEx Small Business Grant Contest
I hope you already know that FedEx is one of the biggest trucking companies in the country. With the help of the FedEx Small Business Grant Contest you can win up to $50,000, you can use the amount to start your own business. However, the contest is not only limited to the truckers, everyone can apply for it.
You need to describe your story on their social media page. First they prepare a shortlist of 100 and then 5 of them are selected from it. Remember that selection depends on your story, the more compelling your story the better chance for you to win the contest. You can find rule of fedex small business grants content here
SBA 8(a) Business Development Program
The Small Business Administration (SBA) is another well known program that offers the business owners various chances to start their own business. The main aim of SBA is to offer 5 % award of government contracts to new businesses every year.
The main objective of the program is to help out those entrepreneurs who are socially disadvantaged or economically deprived. When you belong from the low income group you can easily qualify for this program. But you should note that to get these grants the truck drivers need to go through a lot of paperwork and the procedure is quite lengthy.
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. Apart from that, this matchmaking service also offers various types of services that can help you to start your own business venture.
Fuel Cards
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. However, it is important for you to research a bit before getting fuel cards.
SBA Loans
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. These loans do not have high restrictions and therefore you can spend the money according to your requirement.
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. So, if you are looking to buy a truck then SBA loans are one of the best options available to you.
Cons of Trucking Grants
I hope you already know that there are some drawbacks of grants and you might face various problems while getting them for the first time. Most of the truckers try to search for conventional finance as it offers them better help. We have listed some of the drawbacks of trucking business grants.
Limitations
There are various types of limitations on grants and therefore it restricts you to spend money according to your wish. However, the restrictions are very rigid if compared with conventional financing. Therefore it is important for you to go through the terms and conditions and then apply for the trucking grant.
Time Consuming
It is really hard to find grants and it will consume a lot of energy and time. It does not matter from where you are getting the grants, the lender will take a lot of time as they are highly selective about who to provide the grants. It will nearly take more than a month to find out whether you have been approved for the grant or not.
Competitive
The grants are very hard to find and therefore there are a lot of competitors who are looking for these grants. So, the competition is very high and your chances of getting the grant is very low. There are more than a thousand businesses who are looking for the same grant.
You should also note that grants are not going to cover every business expenses. You need to have personal savings, conventional financing and grants so that you can start your own venture. If you are completely relying on the grants then it will be very hard for you to start your own trucking company. You can apply for a small business grant to start your own business but completely relying on them is not recommended.
Should I Invest On Trucking Business Grants
A question always arises whether you should apply for trucking grants rather than going for traditional financing. There are many reasons to support trucking grants but remember there are a few drawbacks. If you are looking to invest in trucking business grants then there is some information you need to see. The information has been listed below:
Rapid Growth
One of the most important things to survive a business is to rapidly grow and expand the business in the future. You should also note that grants for trucks are always not reserved for the people who want to start a business.
There are also grants for small businesses that are looking for some capital to expand their operations. The best thing about the grants is that they offer rapid growth without imposing any liabilities, therefore they are very valuable.
Multiple Options
Another best thing about grants is that you get multiple options from the government and other private sectors. Therefore you get a lot of opportunities to qualify for the grants and then use it to expand your business or start your own venture.
You can also search for local grants that help small businesses in that particular area. Grant matchmaking services are also helpful in finding lenders that are willing to offer money. All you need to do is fill up the form and get potential grant opportunities.
No Repayment
First of all you should learn that grants and loans are two different things. There are a lot of small businesses that fail and are unable to survive in the long run. Your business lifespan gets shorter when you have to pay a lot of debts. So, basically grants provide you a high advantage as you do not have to pay them back.
When you strictly stick to the terms and conditions of the trucking grants you do not have to pay a single penny. So, it is always wise to apply for grants when you are looking to start your own business.
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.
Additional assistance
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.
Conclusion
I hope this article has provided you with all the information related to 7 Trucking Grants For Truck Drivers To Start Their Own Business. It is always hard to start your own business venture because of various obstructions. But, now it is possible to start your own business even if you are financially deprived. There are several trucking grants that will help you to start your own trucking company. However, there are some terms and guidelines you need to follow to use these grants. If you know someone who is looking for such grants please share this article with them as it might help them. I hope you have a great day ahead!
Frequently Asked Question
We are going to answer some of the most frequently asked questions about trucking grants. Go through the question and answer to gain additional knowledge on trucking grants.
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.
