Apply for Small Business Start Up Grants – Today in this article we are going to discuss and provide some detailed information about small business start up grants. Any company begins their first journey from the start up face and therefore they are categorized in the small business section. There might be any type of small business that includes a partnership, an owner with limited resources or a corporation. As you know in America, when a business has less than 100 employees it is considered a small business. Whereas in Australia small business starts from 1 to 19 employees. You should also know that a small business has relatively low investment in comparison to big businesses as it involves a low rate of turnover and also has fewer number of staffs.
Highlights of this Post
Small Business Startup Grants USA
The best thing about small businesses is that you can start it from your home and therefore it is called micro-enterprises by the World Bank. The small businesses generally have very few employees that are less than 10 people. Most of the small businesses you can find are clinics, small manufacturing industries, freelancers, restaurants, cafes, private agents, law firms and many more.
The best thing about small businesses is that they only require a small amount of capital unlike big businesses. The working hours in small firms are quite short and they also do not require a large workspace. Small businesses also have good relationships with their clients and customers that makes them more trustable. In a small business you can easily change according to the requirements of the market.
A Few Methods That Will Help Small Business Startup
We have mentioned some of the key factors related to small business startup grants. We have identified five key points and they have been mentioned below:
Step 1 : Creation of Business Plan
When you are looking to start a small business, it is important to make a well-defined plan. One of the most important goals of the company is to remain clear and precise. It is also important for them to calculate the money and then invest it very carefully. You should also be aware that you might face severe loss after investing the money. The small businesses also require a minimum number of staff but they need to fit in their specific roles.
Step 2 : Implementation of the Plan
Once you have a well defined plan, it is now time to implement the plan properly. The plan should be implemented in such a way that it will help in achieving the goals that are set by the company. However, the company might need loans as it is not always not possible to self-finance. You can also find many banks that are ready to provide the loans for the business. If you have a partnership business then it might get easier for you to get a loan from the bank. Once the loan amount is sanctioned, the processes of the business gets started. They can start hiring workers and also purchase raw materials that are required to start the businesses.
Step 3 : Business Expansion
When the set goals are accomplished then the small business gets room for more investment. Investments will help in increasing productivity and manpower. It will also help the small business owners to earn more profit by increasing the boundaries of the business. It helps in reaching a larger group of audiences that will help in increasing the sales.
Step 4 : Customer Acquisition and Marketing
One of the most important things of a business is to find the right customers that will help the business to grow in the long run. First of all you need to conduct a little research about the market and the requirements of the customers. However, targeting the customers for a business product depends on the type of product that is being manufactured. There are different marketing tools for small businesses that include small billboards, newspapers and brochures.
High Risk Of Bankruptcy
As you already know that there are many disadvantages when you are setting up a small business. There is a risk of bankruptcy and therefore you need to make decisions very carefully. If the company is not financially strong, it can go through heavy losses. A small business owner can get into trouble when they fail to repay back the loan.
Types of Financing Options for Small Business Start Up
When you are looking to start up a small business, you might require start-up capital from different sources. However, your finding relies on a few factors that include amount requirements, creditworthiness and many more.
Investors
First of all you should understand that when you are starting any businesses it is important for you to attract investors. Investors lend millions of dollars to the company so that they can grow and fulfill their objectives. Funders play a practical role to run the small business start ups.
Business Loans
When you need financial assistance then business loans can be a great option for you. Most of the small business start ups highly depend on business loans. When you are looking for business loans then one of the best options you can try to reach is banks. But sometimes it’s really difficult to find such banks who are willing to offer you money to support your business. However, if you are unable to get a business loan, you can simply try to contact the Small Business Administration (SBA) or any other lender who is willing to offer you a small loan.
Crowdfunding
There are also crowd investing campaigns that are available from where you will be able to raise small amounts from other supporters. The best thing about crowdfunding is that they have helped many businesses in the past years. You can also find many crowdfunding platforms that are mainly designed to source many types of businesses.
Economic Development
First of all you need to know that small business grants are quite similar to loans but you do not have to pay them back. I hope you already know that business grants are quite competitive and there are several requirements that you need to fulfill to meet the eligibility. You can try to get a small business grant that will definitely help you in improving your current situation. You can also find different types of grants that are business grants for women-owned businesses and minority owned businesses. Apart from that you can also find government small business start up grants.
Ways to Advertise and Brand Your Business
When you are looking to boost your sales of service or product Through Grants, it is important for you to build a strong brand that will attract a lot of people. The more you gain followers the more likely you are going to boost your sales.
Logo
First of all it is important for you to create a logo that will attract more people and also help them in identifying your brand. You can also use the logo consistently on various platforms. However, you are required to keep the digital assets that will help your company to grow the business for a longer period. It is said by experts that there are many startups that generally have a very different view on how their websites work. So, it is important to have a proper plan that will help in improving your brand and advertising.
CRM
Another important thing that is required is the CRM software solutions that will help in accumulating customer data that will help in improving your marketing strategy. You also need to prepare email marketing campaigns that will help in connecting with the audience and customers. Therefore strategically building your email marketing is very vital for a successful business.
Social Media
Another best way to use social media is to promote your business using it. You can try to use promotional tools like coupons and discounts that will attract more followers. However it is also important for you to identify the social media platforms that are suitable for your audience.
Company Website
It is also important to create a company website that will help the customers to learn about your company and about your products or services. The Internet is one of the best places where you can learn a lot about the products and its services. A website will help your company to interact with your customers and also help them learn about new or existing products.
Difference Between Business Loans and Startup Grants
Loans and startup grants both can help you in getting some ready cash that will help your business to grow. As you know business loans and startup grants are really helpful as it helps businesses to grow. However, the main difference between a loan and a grant is that you need to pay back loans but grants are absolutely for free.
When you are borrowing money, you need to pay them back. You can get grants from various sources that include government agencies, corporations and trusts. The grants are offered to the non profit organizations, education institutions, businesses and individuals. But it can be really hard for you to find grants. Sometimes your application might get rejected , but there is nothing to worry as there are other available options that can help you out. We have listed some of the major differences between loans and grants.
Loans Have Consequences
Loans are sometimes really dangerous when you fail to make a payment or default your credit, you might face different types of consequences. The consequences generally depend on the type of loan you have taken and you might face several consequences like bankruptcy, damaged business credit or UCC filing. However, the risk associated with start up grants is the opportunity cost. Always understand that when you are unable to meet specific requirements, you will not be offered the grants.
Direct Competition Associated With Small Business Grants
You should be very much aware that it is not easy for you to receive small business grants as there are many requirements to fulfill. It is often hard to lend money as most of the business lenders need some solid evidence that your company has the capability to pay the money back.
But remember that you are easily able to get corporate grants, whereas the offer is quite limited. There are many women entrepreneurs who are willing to start their business, so there are women business start up plans for them. To get small business grants, your company must fulfill all the funding parameters. Getting the business grants is no easy task as you need to fulfill various types of requirements.
Business Credit Cannot Be Built Using Grants
First of all you should know that you will be unable to build business credit using grants. You need credit to build credit. You need to know about tradelines to build your business credit history. However, small business start up grants can be really helpful as it offers some extra money in funding your business. The money can be used for expanding or growing your business. Another best thing about business grants is that it is not reported to any business credit bureaus or person.
Interest on Loans
As you already know that small business start up grants are not any kind of loans and they offer free money. However, when you are opting for loans it can surely cost you a lot of money. The cost also depends on the type of loan you are taking. You can expect an APR that varies from 5 percent to 150 percent depending on the loan, cash flow, collateral and other related factors.
Taxable Income Related to Grants
The IRS generally offers corporate grants as income that is for taxable purposes. However, it generally depends on your start up business and how you are reporting your income to the IRS. It will help in determining your tax time and to know about more grants you can simply go to Uncle Sam. However this potential downside can be avoided by making plans earlier and also taking suggestions from your tax advisor or accountant. You will also be well informed about the quarterly payments and estimate your taxes. But remember that the IRS does not consider loans as income.
Native Americans Small Business Start Up Grants
According to a survey it is found that native american owned small businesses are growing steadily whereas there is no difference in their employee and revenue shares. It is identified that the Native Americans do face a 27 percent poverty rate and that is quite higher than the national Rates.
There are a number of organizations that are offering grants programs and business loans.
As you know that loans play a vital role in utilizing the sources and help the business to grow in the long run. However, you need to pay back the loans with interest or fees. But loans are easily available in comparison to the grants.We have provided a few programs (loans and grants) that can help them in expanding their business growth.
NDN Fund
The NDN Fund is an Indigenous-led organization that aims to build indigenous power. The NDN fund is used for philanthropy, activism and other businesses. If you are a native american, you can simply get small businesses loans from NDN funds that are up to $500,000. The loan program helps the business owners to overcome the financial impacts and grow their business.
SBA Loans
There are many loans that are offered by the U.S Small Business Administration to support the small business owners. However, the SBA’s loans are offered to agencies and other entrepreneurs so that they can grow their business. It is also identified that one-third of the SBA loans are offered to the minority business owners. There are mainly three types of funding programs to help out the native entrepreneurs:
- Microloans: The SBA’s microloan program offers loans that are up to $50,000 to help out the small business so that they can grow and expand.
- 504 Loans: The SBA-regulated non-profit organizations offer 504 loans to small businesses so that they can grow and increase job creation.
- The 7(a) Loan Program: Another well known program that is offered by SBA is the 7(a) loan program that offers $5 million to small businesses so that they can purchase their resources to run the business without any barriers.
Microlenders
It is always difficult to grow a new business and you might often face various challenges. But when you are dedicated and have a clear vision then anything is possible. You might not have the capital you require to run the business and therefore Microlending can be very useful for you to fund your small business. You can still get help from microlenders even if you do not have a long business credit history or score. You can get average loans of $10,000 but there are some eligibility requirements to fulfill.
However, if you are a Native American you can get help from Accion Opportunity Fund as they provide microloans to startups. The loan amount can be used for marketing expenses, staff, supplies, leases, inventory, purchases etc.
Minnesota Indian Business Loan Program
The Minnesota Indian Business Loan Program is another initiative that is taken by the Minnesota State Government. The government offers various loans for the development of business that is owned by Native Americans in Minnesota.
However, to apply for this program you are required to be an enrolled member who is federally recognized and must be operating the business in Minnesota.
It is also important that your business is owned by an enrolled tribal member. The business can be located anywhere in the state , however most of the loan recipients are mainly from India The program has limited funds so the loans are accepted depending on the funds available. The funding would help your business to cover various requirements including buying equipment and machinery. You can use the loan as working capital but you cannot use it to cover other financial debts.
First Nations Development Institute
You can find the First Nations Development Institute that is located in Colorado that offers small business grants to the Native Americans to improve their life. They also offer different types of business programs that put emphasis on webinars, education and on financial markets. You can also find various types of programs designed for the Native American businesses.
Small Business Start Up Grants For Veterans
There are few small business start up grants for veterans that has been mentioned below:
Hivers and Strivers
When you are a veteran, you can seek help from Hivers and Strivers as they are an angel investment group that offer help to veterans with their businesses. The organization runs a Venture Capital program for the Veterans that offers funds that vary from $250,000 to $1 million.
You can apply for this grant using the Gust platform. The program mainly focuses on the veterans that are starting an early company and has growth potential. But remember the businesses that are on government contracts will not be provided any funding.
Warrior Rising Small Business Grants
When you are a veteran and looking to start a new business you can try to get funding from Warrior Rising Small Business Grants. This is a non profit organization that was founded in the year 2015 in Utah.
The eligible veteran entrepreneurs will be able to get business grants and mentorship from them. You can also apply online for the grants using the Warrior Rising Program. Once the organization accepts your application, you will receive an email from them. You can also schedule a phone call and follow the steps to receive the grant.
Street Shares Foundation Veteran Small Business Award
There is a nonprofit street shares foundation that is open for Veteran business owners. The veteran small business award is provided to military and veterans so that they can start up their business or extend their businesses. There is military entrepreneur challenge that offers:
- First Place : $15,000
- Second Place : $6,000
- Third Place : $4,000
Apart from the cash award the first place recipients are also offered $25,000 pro-bono legal service. Finalists also receive around $1,000 from the Synergy Learning Institute.The first, second and third place winners also receive various scholarships that vary from $3,000 to $10,000.
Small Business Start Up Grants for Women
There are a few small business start up grants for women that help the women to grow their business in the long run.
Amber Grants
When you are suitable for female entrepreneurs you can try to get Amber Grants that will help in supporting your small or local business. The Amber Grants offer $10,000 as grant to the female owned businesses. They also select a monthly winner offering her a $25,000 grant. To apply for the Amber Grant you can simply visit their official website and explain why you need the grant urgently.
Visa’s She’s Next Program
She’s Next is another program that offers business grants to black women-owned businesses. The grants are generally offered through Visa. However, to qualify for the grant you need to be a black business woman and be running the business for a minimum of 2 years. Apart from that the minimum revenue must be $24k and there are other location restrictions applied. You can visit their official website to know more.
Small Business Technology Transfer Program
If you are looking for grants then you can get funds from the Small Business Technology Transfer Program. The program can help you with research and development processes. However, to get the research grant from the federal government your company needs to have less than 500 employees. However, you need to earn around $250,000 in the starting phase and be able to receive around $750,000 when your research gets positive results.
Ms. Foundation for Women
The Ms. Foundation for Women do offer various types of awards to the women who are owning business. The foundation mainly works for the advancement of women and girls. There are also past recipients who have had businesses that mainly work to eliminate domestic violence and provide access to affordable childcare. You can visit the foundation’s website to know more.
Conclusion
I hope the article has provided you with all the information on small business start up grants. Small business start up grants are really helpful for small businesses as it helps them to expand and grow in the long run. We have already mentioned a few ways that can help you in a small business start up. If you know anyone who is looking for small business start up grants please share this article with them. Thanks for reading this article till the end, I hope you have a great day ahead!
More in small business
- Texas Small Business Grants
- Native american Small Business Grants
- Small Business Facebook Grants Program
Conclusion
We hope the article has provided you with all the information on small business start up grants. Small business start up grants are really helpful for small businesses as it helps them to expand and grow in the long run. We have already mentioned a few ways that can help you in a small business start up. If you know anyone who is looking for small business start up and small business grants please share this article with them. Thanks for reading this article till the end, I hope you have a great day ahead!
Frequently Asked Questions
Are there small business start up grants?
Yes, there are small business startup grants that are offered to the small businesses that are looking to expand or grow their businesses. However, there are some specific requirements to qualify for the small business grants.
What are some financing options that will help small businesses to grow in the long run?
There are a few financing options that will help small businesses to grow in the long run including business loans, crowdfunding, investors and many more.
Are loans and startup grants similar to each other?
Loans and start up grants are not at all similar. Startup grants are offered at a free of cost and you do not have to pay them any money. Whereas loans offer you money that you need to pay back after an interval time with interest.
