An Insight Into Small Business Grants

in Small-business

Business grants for starting a small business are difficult to get in the United States, particularly for the profit-oriented business organizations. The most usual form of financial aid for such enterprises is loans that are provided by the federal, state governments and many public organizations. Business grants are available for very specific type of business activities and the primary sources for them include:

1. Small Business Administration (SBA) The U.S. SBA extends most of its grants to non-profit organizations. The other beneficiaries include some lending institutions and a few state governments. It usually doesn't extend grants for staring or expanding upon a functional small business. Most of the applications sent to the SBA seeking a grant for starting a small business are diverted to the loans section. However, it does provide some financial assistance but to a very restricted extent. However, small businesses are encouraged to seek SBA's help in seeking better business management tools and technical help.

2. Federal Domestic Assistance (FDA) Business grants are available for small businesses through federal funding also. Those who fulfill the eligibility conditions laid down by the FDA program should search for grants that are mentioned in the Catalog of Federal Domestic Assistance (CFDA). Key resources to use when searching for federal grants for starting a small business include:

  • Grants.gov (a comprehensive website)
  • CFDA - Catalog of Federal Domestic Assistance
  • SPOC - State Single Points of Contact

Usually an updated list of the federal grants is listed on Grants.gov. Small-scale entrepreneurs should register here and get their DUNS number. This helps in forwarding a formal online application.

3. State Business Grants There are some specific grants that have been introduced by various states, catering to the need of small businesses.

Example: Technology & Market Assessment grants are provided in the state of Arizona. These grants covers expenses for filing patents, commercialization or tying up with partners. Getting these grants isn't very easy as the technology mentioned in the application is reviewed and put through a competitive analysis method. The potential of the business in terms of being marketable is strictly scrutinized.

Condition - this grant caters to small companies that have less than 100 employees or revenues of less than $4 million.

4. Small Business Innovation Research (SBIR) The SBIR program is dedicated to the upliftment of domestic small-scale business set-ups. It is aimed at encouraging smaller enterprises in undertaking more research-oriented or scientific development-based activities. A new addition to the SBIR initiative has been in the form of Small Business Technology Transfer (STTR) Programs. SBIR identifies research-based small businesses that have a potential for engaging in profitable commercial activities and extends financial aid in the form of business grants. Its special area of focus includes small businesses that are:

  • economically-disadvantaged
  • women-owned

5. Grants for Non-profit Organizations Business grants are available for non-profit organization and SBA is one of the biggest contributors. Examples of other such grants include the National Endowment grants for the Arts and the SBC Excelerator grants for non-profit organizations that help to integrate technology in the disadvantaged section of the community.

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Chris Hansen has 1 articles online

Government grants are a great way for a small business to get off the ground. For many entrepreneurs like yourself, loans and outside investments just aren't an option. There is more help for available: Government grants for your business

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An Insight Into Small Business Grants

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This article was published on 2010/04/03