Great for Entrepreneurs
Being an entrepreneur is exciting but also presents its own unique challenges. Financing is a large obstacle that is often not easy to overcome. Simply put, the more money that you have at your disposal the more options will be available to make sure your business is on the right path to success.
Unfortunately, many companies never properly explore the field of government grants. They assume that they do not qualify for grants and never even try to apply.
What is a Government Grant?
A government grant is a financial award given by the federal, state, or local government authority for a beneficial project of some sort. It is effectively a gift: It does not include technical assistance or other financial assistance, such as a loan or loan guarantee, an interest rate subsidy, direct appropriation, or revenue sharing. The grantee is not expected to repay the money.
Why is the government giving away free money?
Innovation and ingenuity are important to any society. In order for any economy to be competitive in the modern world, they must make sure to open up avenues to grow and nurture new businesses. To put it simply, the government gives out grants because it serves the greater good to serve the needs of the people.
Grants are a great way to even the playing field.
We have all heard stories about great entrepreneurs with relatively humble beginnings. Grants are in place because few people have the capital to start a business without some assistance. This is particularly true for minorities and women who might have faced discrimination in the past that hindered them from pursuing their business goals.
Grants for Women
Here is a listing for the best government grants for women:
- Grants.gov
- National Association for the Self-Employed Growth Grants
- Eileen Fisher Women-Owned Business Grant Program
- Amber Grant
- IdeaCafe Grant
- #GIRLBOSS Foundation Grant
- Cartier Women’s Initiative Award
- GrantsforWomen.org
- FedEx Small Business Grant
Is it difficult to obtain a Grant?
In truth, grants can be very competitive. It is important to read instructions so that you can thoroughly understand the application process. You do not want your grant application to be thrown out because you did not provide the correct paperwork or information. A small business should also be aware of deadlines. However, please do not let a challenging application dissuade you from trying to qualify for grants. There is nothing truer than the saying about never making any of the shots you don’t take. There are also websites that can help you through the process.
The first steps
For example, the following are the steps to apply for a federal grant:
- Step 1: Obtain a DUNS Number
- Step 2: Register with SAM
- Step 3: Register with Grants.gov
You might be wondering what SAM means and how do you register with the site. Go to sam. directory to find people who are willing to make this as easy as possible. Be sure to also check out our informative article Everything A Small Business Needs to Know About the SAM Directory, which should easily answer most of your questions.
What are some examples of grants for Small Businesses?
The Small Business Innovation Research (SBIR) encourages small businesses in the United States to engage in research and development that has economic potential.
Their website states their mission of the is to support scientific excellence and technological innovation through the investment of Federal research funds in critical American priorities to build a strong national economy.
SBIR Goals
The program’s goals are four-fold:
- Stimulate technological innovation.
- Meet Federal research and development needs.
- Foster and encourage participation in innovation and entrepreneurship by women and socially or economically disadvantaged persons.
- Increase private-sector commercialization of innovations derived from Federal research and development funding.
Program Participants
The following are a list of agencies that participate in the SBIR program:
- Department of Agriculture
- Department of Commerce – National Institute of Standards and Technology
- Department of Commerce – National Oceanic and Atmospheric Administration
- Department of Defense
- Department of Education
- Department of Energy
- Department of Health and Human Services
- Department of Homeland Security
- Department of Transportation
- Environmental Protection Agency
- National Aeronautics and Space Administration
- National Science Foundation
The Small Business Technology Transfer (STTR) is another program that expands funding opportunities in the federal innovation research and development (R&D) arena.
The mission of the STTR program is to support scientific excellence and technological innovation through the investment of Federal research funds in critical American priorities to build a strong national economy.
STTR Goals
The programs’ goals are to:
- Stimulate technological innovation.
- Foster technology transfer through cooperative R&D between small businesses and research institutions.
- Increase private-sector commercialization of innovations derived from federal R&D.
STTR Program Participants
Participating government agencies include the following:
- Department of Defense
- Department of Energy
- Department of Health and Human Services
- National Aeronautics and Space Administration
- National Science Foundation
These are some great opportunities at the federal level for any small business.
Do not forget about State and Local Grants.
State grants are often geared to that particular state’s economic concerns. They are often supposed to work in tandem with federal grants but can be much less competitive. Go to Grants.gov to get a complete listing of what is offered in your state.
Also, do not forget your own local municipal governments. Do a deep dive into your community to find out what is available. Again, every little bit helps and sometimes money is left on the table because people are unaware of what is out there on a local level.
When applying for a grant, think about what you are doing for the community.
What are you bringing to the table? Does your business model further the altruistic goals? For example, if you are part of a small community of at least 50,000 people, you could qualify for a Rural Business Development Grant
The Government is always looking to nurture innovation in Rural Areas
Their websites describe this program as a competitive grant designed to support targeted technical assistance, training and other activities leading to the development or expansion of small and emerging private businesses in rural areas which will employ 50 or fewer new employees and has less than $1 million in gross revenue. Programmatic activities are separated into enterprise or opportunity type grant activities.
Rural public entities including, but not limited to:
- Towns
- Communities
- State agencies
- Authorities
- Nonprofit corporations
- Institutions of higher education
- Federally-recognized Tribes
- Rural cooperatives (If organized as a private nonprofit corporation)
What happens if I receive a grant?
The good news is that since it is not a loan you do not have to worry about interest rates and financing. However, grants can be very specific about how you use your money so you want to make sure that there is clear communication between you and the government agency about how the money should be spent.
Do not forget registering for the SAM directory.
Your first step to securing these lucrative grants is registering for the SAM Directory.
SAM stands for System Award Management. Go to sam.directory for assistance on this important process.
The right government grant can go a long way into making your small business goal a reality.