There are a lot of options for funding your business. One option is to apply for a grant. Unlike loans, grants don’t have to be paid back. However, securing one requires time and preparation. You can find free grants from private corporations and government agencies. For example, Incfile offers a Fresh Start Business Grant and NASE offers $4K Growth grants.
Government Grants
Many governmental entities offer grants to promote the growth and development of businesses. Government grants differ from loans in that they don’t have to be paid back and aren’t reported to business credit reporting agencies.
When applying for grant money, pay close attention to the guidelines and requirements. If the application asks you to state why your business deserves funding, consider carefully crafting a confident story that appeals to a panel’s emotions and makes them believe you are passionate about this project and will succeed.
Whether you’re looking for a small business grant or a larger corporate grant, the most successful applicants have a well-thought-out plan and clear goals of how the grant money will be used. You can find a wide variety of business-related information and resources on sites like OpenGrants and Bench, which offers bookkeeping services for small businesses that will help you prepare for your application. Our team will store all your transactions in a single place, provide valuable insights into your operations and even file your taxes.
Private Grants
Unlike loans, grants do not need to be paid back. However, they often come with restrictions on how the funds can be used. Private companies set up grant programs to promote business growth and encourage entrepreneurship. These programs typically have less rigorous application requirements than government ones but are more competitive.
If you’re looking to secure a private business grant, try searching for ones that cater to your specific industry or cause. You may also be able to find one that supports business owners who are veterans or have disabilities.
If you’re struggling to find a grant, reach out to a Small Business Development Center (SBDC). These centers have experts who can help you navigate the process and find the right opportunities. They can even help you prepare for any interviews. Bench is a business management platform that helps you organize all of your financial records in one place and gives you a team of personal bookkeepers to manage your finances.
Local Libraries
Local libraries can provide many of the same resources as larger organizations, such as free grant writing help and access to research databases. They can also help you find local business grants. Some of these grants may be specific to your industry, while others are more general and open to all small businesses.
Some libraries offer special collections to help build communities, such as the Richmond Public Library’s seed lending library, which enables people to plant their own gardens. Others provide tools to support community rebuilding efforts, like the Temescal Branch’s Tool Lending Library. These unique collections show how versatile libraries are in meeting the needs of their communities.
The National Association for the Self-Employed runs monthly small business grant contests that award winners up to $4,000. You must be a member of this nonprofit trade association to qualify. Another great resource for finding grants is GrantWatch, a subscription-based database that lists federal, state and local business grant opportunities as well as some private foundation funding.
SCORE
If you want to start a business and are looking for free grants, there are a number of programs that may be available. These programs include Small Business Development Centers and SCORE. Small business development centers offer counseling on writing a business plan and may have free workshops for entrepreneurs. SCORE, an organization of retired business professionals, also offers free consulting services.
Mentors at local SCORE chapters have extensive experience in a wide variety of industries and can help you navigate the complexities of starting a business. Sessions can be conducted face-to-face or via email, phone or video chat and are kept confidential. You can also find workshops, webinars and on-demand courses.
While it is not as easy to get a grant as a loan, if you are willing to work hard, you can find some funding options that will allow you to begin your business without the risk of debt. Be sure to research your options and be ready to apply when the application process opens.