Starting a business is hard enough as it is, but the high cost of getting started can be downright daunting. Hence, the need for business loan grants.
Thankfully, there are a number of different ways to get the money you need to get your business off the ground. In this guide, we’ll break down how to get a business loan grant–one of the most popular options for small businesses. We’ll also provide tips on how to make your application as strong as possible and increase your chances of being approved.
What Are Business Loan Grants?
A business loan grant is a type of financing that’s given to business owners who want to start or expand their businesses. Unlike a traditional business loan, there is no need to repay a loan grant. That’s because the money given is actually a gift, not a loan. business loan grants are often given to small businesses, women-owned businesses, and businesses in underserved communities.
How To Get Business Loan Grants
The best way to get a business loan grant is to start by looking for grants that are specific to your industry. There are a number of online directories and databases that can help you find business grants that are relevant to your business.
The government also offers several grants for businesses, so it’s worth checking out the government’s website as well. In addition, local organizations and Chambers of Commerce often offer grants for businesses that are expanding or starting up in their area. The bottom line is that there are plenty of resources out there for business owners who want to get a loan grant. It just takes a little bit of research to find the right one for your business.
Types Of Business Loan Grants
There are many different types of business loan grants, so it’s important to do your research and find the one that’s best for your business. Here are a few of the most common types:
- Small Business Administration (SBA) Loans: The SBA offers a variety of loans to small businesses, including the 7(a) Loan Program and the Community Advantage Loan Program.
- State and Local Grants: Many states and cities offer grants to help businesses start up or expand. You can find a list of state and local grant programs on the website of the National Association of Development Organizations (NADO).
- Federal Grants: The federal government offers a variety of grants to businesses, including the U.S. Small Business Administration’s (SBA) 8(a) Business Development Program, the Women’s Business Centers program, and the Veterans Affairs Department’s Service-Disabled Veteran-Owned Small Business Program.
Some Business Loan Grants For You
The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs are rigorously contested programs that encourage domestic small firms to participate in federal R/R&D with commercialization potential. SBIR and STTR enable small enterprises to explore their technical potential and give the motivation to profit from its commercialization through a competitive awards-based program. High-tech innovation is promoted, and the United States acquires entrepreneurial spirit as it satisfies its unique research and development needs, by including qualified small enterprises in the nation’s R&D arena.
The FedEx Small Business Grant awards $7,000 to seven small businesses who win the first place category, in addition to FedEx office print services worth $1,500. Also, three businesses who finish in the grand prize category will go home with $50,000 each in addition to FedEx print services worth $4,000. This money does not need to be refunded.
There are thousands of government business loan grants on Grants.gov and you can take advantage of these grants for your businesses.
In 1998, WomensNet established the “Amber Grant.” The fund was established with one objective in mind: to remember the memory of Amber Wigdahl, a very unique young woman who died at the age of 19 before achieving her entrepreneurial goals.
Today, WomensNet proudly continues that legacy, awarding at least $30,000 in Amber Grant money every month. We’ve also broadened our grant-making to include “Marketing Grants,” “Business Category Grants,” and two “$25,000 Year End Grants,” in appreciation of the diversity of women-owned businesses.
Score understands that natural disasters and economic downturns provide unique problems. But what if they could assist you in transforming the challenges you’re facing into opportunities to develop stronger and more successful than you’ve ever been?
Their Resilience Hub provides training, resources, and remote mentorship to aid in the adaptation and success of your small business.
ALSO READ: 10 Easy Loans Or Grants For Small Business
6. US Economic Development Administration
The US Economic Development Administration is a bureau within the US Department of Commerce which supports businesses in the US. The administration assists state and local interests in developing and implementing economic adjustment and transition plans. The initiative focuses on places where substantial structural harm to the underlying economic basis has occurred or is imminent. EDA’s Revolving Loan Fund (RLF) Program, which provides small firms and entrepreneurs with the gap finance they need to establish or develop their business, is administered by Economic Adjustment.
Submit your application for a NASE business development grant valued up to $4,000!
If you’re already a member, just sign into your member account and sign in, then apply for the NASE Growth Grant. The NASE Growth Grants program might provide you with up to $4,000 for your small business.
Since 2006, the NASE has provided approximately $1 million in small company awards to members like you through the Growth Grants program. Grants can be utilized for marketing, advertising, personnel recruitment, facility expansion, and other business needs.
How To Use Business Loan Grants
If you’re lucky enough to receive a business loan grant, it’s important to use it wisely. This type of funding can be used for a variety of business-related expenses, such as marketing, inventory or start-up costs. It’s also a great way to reduce your overall loan amount, so be sure to take advantage of it! When you’re ready to apply, make sure you do your research and compare different lenders. Don’t forget to read the terms and conditions carefully so you know what you’re getting into. And lastly, always make sure to repay your loan on time—business loan grants can help your business grow, but they also need to be repaid with interest.
Scams to watch out for
Unfortunately, there are a number of scams out there that target business owners seeking funding. Here are a few to watch out for:
- Beware of anyone who asks you to pay a fee in order to receive a business loan grant. This is definitely a scam.
- Be careful of anyone who guarantees you a business loan grant, especially if they ask for payment. There is no such thing as a guaranteed business loan grant, so this should be a red flag.
- Watch out for businesses that require you to sign a contract before receiving your funds. This could be another sign of a scam.
- Be leery of anyone who asks for your personal information such as your Social Security number or bank account number. This is not something you should ever disclose to someone you don’t know.
If you’re ever unsure about an offer, do some research and/or contact your local Small Business Association for help.
A business loan grant, as grants for small business startup, can be a great way to get the funding you need to start or grow your business. However, it’s important to be aware of the different types of business loan grants available and how to apply for them. There are also scams to watch out for, so be sure to do your research before applying for a business loan grant.