There has never been a time with so many financial support options for small business owners. Here are some financing options you may want to consider to grow your business. Remember to read the fine print and be aware of the deadlines to apply, fund, repay, and submit your request to forgive the debt. Beware of the scammers, so do not provide any private information unless you are certain the organization’s website is verified and secured. Here is an explanation of the difference between Grants and Loans and some resources that can help you find the right financing for your organization.
Grants
A grant is money that is given to a person, business, nonprofit, or corporation from federal, state, county, or local governments, private businesses or corporations. There are a number of entities providing free money to small business owners in the form of a small business grant. And Grants do not require repayment. Remember also that Grants are taxable income.
Loans
Loans require a payback and a good credit history. Unlike in a typical economy, the PPP and EIDL offer unique benefits in that some or all of your loan can be forgiven depending on your expenses and which funds you receive.
Start your search using these resource links:
EIDL and PPP
The Paycheck Protection Program (PPP) are still available for small businesses impacted by COVID-19. You can now apply for a second-time draw, or apply now for your first-time PPP loan if you missed out in 2020. Preferences are now available for smaller businesses in the second draw. Although it’s not technically a grant, if you spend the funds on approved expenses during a specific time frame, the entire PPP loan may be forgiven. That essentially turns it into a grant.
The Economic Injury Disaster Loan, while yes, is technically a loan, includes a $10,000 grant for eligible businesses. You may qualify for a loan of more than that amount, but if you meet the following eligibility criteria, you may qualify for a $10,000 grant:
- Be located in a low-income community
- Have suffered an economic loss greater than 30%
- Employ 300 or fewer employees
Local Resources To Help You Find Funding, Mentors and Business Growth Planning
Small Business Development Centers (SBDC) are a business owner’s best friend. Local, regional, state, and national offices mentor small business owners and help them find business financing, grants, marketing strategies, and connect to other local business owners. They actually pay experts to help local small businesses navigate their growth across the US. These centers offer a network of funding and small business advice.
SCORE is a nonprofit organization backed by the Small Business Administration that promotes free tools and mentorship for American small business owners. Like SBDCs, SCORE is a free resource for entrepreneurs looking for help or expertise and they have many local experts that you can connect with. A SCORE mentor may help you identify local grant opportunities, or review your pitch to help you make it as compelling as possible.
Your Local Librarian
Local libraries provide help finding grants for free or at a low cost to business owners. Just ask your librarian. They are trained researchers with access to hundreds of databases.
Shuttered Venue Operators Grants
The Shuttered Venue Operator (SVO) Grant program (SBA) provides $15 billion in grants to certain businesses impacted by COVID-19, including:
- Live venue operators or promoters
- Theatrical producers
- Live performing arts organization operators
- Relevant museum operators, zoos and aquariums who meet specific criteria
- Motion picture theater operators, or
- Talent representatives
The applicant must have been in business by February 29, 2020. This program will be administered by the SBA.
Federal Small Business Grants
The Federal government, too, offers grants to support small businesses.
Small Business Innovation Research Program: Good For Technology Companies
The SBIR grant program is for entrepreneurs focused on innovations in technology that have the potential for commercialization. You can check its funding opportunities here. Focus areas from the past include clean and safe water, homeland security, land revitalization, green construction, advancement of health care, and more.
Small Business Technology Transfer Program: Good For: Energy-Focused Businesses
The STTR program aims to expand funding for innovative research and development leveraging existing technology. What makes this program unique from the SBIR program is that small businesses get the opportunity to formally collaborate with research institutions throughout the program. Each agency sets its own guidelines — check here for open STTR grants.
Department of Defense Grants: Good For: R&D Companies
The DoD offers grants to small businesses through the STTR program and a number of other initiatives, like the Defense Enterprise Science Initiative. The Office of Naval Research, the Air Force Office, and the U.S. Army Research Institute are all looking for research and development of technology that will help them reach their goals.
Department of Energy Grants: Good For: Innovative Technology Companies
The DOE offers grants through the SBIR and STTR programs for innovative research and development leveraging technology developed by a university or a DOE National Lab. Check here for its current grant openings.
National Institute of Health (NIH) Grants: Good For: Biomedical Businesses
NIH is a federal agency within the Department of Health and Human Services (HHS). It offers business grants to small businesses developing and researching biomedical technology. It is currently funding opportunities related to COVID-19 research.
Department of Justice Grants: Good For: Public Safety Projects
The DOJ allocates grant funding to projects that support law enforcement, public safety activities, programs to improve the criminal justice system, and more. Here’s an overview of the agencies within the DOJ that provide grants.
Department of the Interior Grants: Good For: A Variety of Businesses
The DOI offers small business grants through several departments, including the U.S. Fish and Wildlife Services, Indian Affairs, National Park Service, and Native American Graves Protection and Repatriation Act. Find other DOI grant opportunities on Grants.gov.
USDA Rural Development Business Grants: Good For: Small Rural Businesses
The Department of Agriculture offers both loans and grants to support businesses in rural areas to create quality jobs. It funds community projects such as the development of housing, community facilities, and other services.
National Institute of Food and Agriculture (NIFA) Grants: Good For: Agriculture & Food Nonprofits
The NIFA is a federal agency within the USDA with a focus on leadership and funding programs. It offers grants throughout the year, which come with support and guidance. Be mindful that many of its grants are offered to nonprofits or larger businesses.
Remember to set aside some marketing money to promote your business and protect it from today’s poaching market Due to the high competition, many companies are employing aggressive campaigns to take your customers from you using lower costs or enhanced services. These poaching campaigns work. So make sure your customers and their friends are hearing from you as we all compete for business expansion in 2021. If you need help brainstorming to create your own re-open and re-marketing plans, contact us by email at liz@adteamla.com, or call us at 310-791-6300.
Liz Harsch is the owner of Tailor-Made Advertising in Torrance, CA. Her firm provides marketing, training and consulting to identify marketing and media alternatives for business owners. As an experienced Marketing Director, Media Planner, Liz has trained small business owners for Constant Contact, SCORE, SBDC, SBA, Cities and MWD and County outreach partners, APICS plus many Chambers of Commerce for over 15 years. She can be reached at her Torrance, CA office at 310-791-6300 or by email at liz@adteamla.com. You can also join her Free webinars and upcoming training workshops calendar at http://bit.ly/workshopscal .
