A tiny business’s growth engine is propelled by money. However, obtaining a business loan when you only have a company concept is difficult. When you’re in this circumstance, you might wonder, “How can I receive free money to start a business?”
You can obtain free money to start a small business, which is great news. Many government and private organizations provide business subsidies to assist people fulfill their ambition of owning a business.
Whether you’re planning to start a new business or already have one, these business awards can help you get started when you’re short on funds.
Let’s get started:
Where can I receive Free Money to Start a Business?
Financing for small businesses is difficult. As a result, it’s no surprise that cash is used to fund 39 percent of small enterprises.
Even if you’re looking at franchises under $10,000, getting a financing for your business while you’re just getting started might be difficult. Even if you secure a loan, paying it back might be challenging at first if your company isn’t earning a profit.
As a result, looking for small company grants rather than applying for business loans is a better choice.
Some common ways to acquire free grant money for small businesses are government grants, general small business grants, industry-specific awards, and diversity small business grants.
Where Can I Get Free Money to Start a Business?
The best sources to acquire free money are as follows:
Grants from the Small Business Administration (SBA)
The Small Company Administration (SBA) is a government organization dedicated to assisting small business owners and entrepreneurs across the country.
The Small Business Administration (SBA) distributes a limited number of government small business awards, most of which are in the form of technical support but are worth thousands of dollars:
Here are some of the most important SBA grants for small businesses:
1. Management and Technical Assistance Program (Section 7(j))
The 7(j) Management and Technical Assistance Program can assist you in preparing for federal, state, and local government contracts. Eligible organizations receive one-on-one advice and training in a variety of business tasks, such as marketing, accounting, and contract administration.
2. Small Business Administration Mentor-Protégé Program
A small company owner may learn critical business growth tasks from an experienced government contractor through this program.
3. Fund for Restaurant Revitalization
One of the most well-known coronavirus small business awards is this one. Restaurant Revitalization Fund applications are accepted from eligible restaurants, bars, and other qualified enterprises that have been impacted by Covid-19.
4. Programs for Small Business Innovation Research (SBIR)
The SBIR program, which is supported by the Small Business Administration, is beneficial to small enterprises that conduct independent research and development.
5. Technology Transfer Programs for Small Businesses (STTR)
Small enterprises who desire to perform research and development might also benefit from the STTR program. Small enterprises must, however, develop collaborations with non-profit research organizations as part of this initiative.
There are three phases to both the SBIR and STTR programs. Find out more about it here.
Grant Programs for Small Businesses in General
If a business owner is unable to qualify for government funding, they should not be discouraged. Many non-profits and private enterprises now provide options for small businesses to obtain start-up finance.
Consider the following common choices:
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1. The NASE Business Development Grant
A business development award of up to $4,000 is available from the National Association for the Self-Employed (NASE). You must be a member of NASE to apply for the NASE Growth Grants Program.
2. The Nav’s Small Business Grant
The winner of Nav’s Small Business Grant will get $10,000, while the runner-up will receive $5000.
3. Grants from IdeaCafé
The IdeaCafe Small Business Grant Program is a wonderful alternative for someone who wants to start a business because it is free, quick, and simple to apply for. The reward is valued at $1000.
Grants for specific industries
You can apply for industry-specific awards if your company is a speciality one. Many business subsidies are only available to firms in certain industries.
Let’s take a look at some of the industry-specific grants that might help you get started for free:
1. The Halstead Grant
The Halstead Grant is an excellent way to get started as a silver jewelry artisan. The big reward is $7,500 in addition to additional perks.
2. Grant for Power Forward
Power Forward Small Business Grants, which give transformational grants of $25,000 on a rolling basis to black-owned small companies with 1-25 employees in the New England area, are available.
3. Sephora Accelerate
This award is intended to help beauty entrepreneurs get their businesses off the ground. Sephora Accelerate will take beauty entrepreneurs on a six-month journey to learn the skills and know-how they’ll need to launch a successful business.
4. Invoice2go can help you grow.
Develop by Invoice2go is a program for minority-owned businesses that gives up to $15,000 in funding to help them grow.
5. eBay Start-Up Grants
eBay Up & Running Grants, which award $10,000 grant packages to each qualified seller, are open to US eBay merchants.
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Grants from the state
Check out these state grants:
1. Trade Expansion Program for States (STEP)
Despite the fact that the STEP program is governed by the SBA, it is implemented by states and territories. Qualified enterprises will get financial support through this initiative to help them enter and develop into foreign markets.
2. Small Business Development Centers (SBDCs) are another option.
You can also contact a Small Business Development Center (SBDC) in your region for assistance with business planning, strategy, and operations. Although SBDCs can not provide financial assistance, they may help firms prepare to apply for different awards. To locate an SBDC in your region, go to the SBA’s website.
Check with your local governments for additional information on small company state grants.
Grants for Green Businesses
Green business grants, as the name implies, are given to green firms. In many situations, this is a field where you may learn how to start a business with no money from people who have done it before you. It is, however, a labor of love since those who participate want to make a difference in the world.
If you’re running a green business and need funding to expand, you may check into the following options:
1. The Rural Energy for America Program is the first of its kind in the United States (REAP)
The REAP program is for agricultural producers and small enterprises in rural areas who work with the following organizations:
Systems that use renewable energy
Making improvements to energy efficiency
2. The Funding Programs of the Office of Energy Efficiency and Renewable Energy
The EERE financing programs support the advancement of renewable energy technology. EERE funding options may be found here.
3. The Cisco Global Problem Solver Competition
The Cisco Global Problem Solver Challenge distributes prizes in 15 distinct categories, with the goal of recognizing creative ideas that use technology for social good from early-stage entrepreneurs all around the world.
Grants to Non-Profit Organizations
If you manage a non-profit organization, you have a variety of grant financing choices. Many private firms and corporations offer awards to assist you in moving forward.
Here are a few common non-profit grant options:
1. Patagonia’s Corporate Grants Program is number one.
For individuals working in the environmental industry, Patagonia’s Corporate Grants Program is a fantastic choice to consider.
2. Grand Challenges Around the World
Grand challenges is a collection of projects aimed at fostering innovation in order to address global health and development issues.
3. Grant Programs at Walmart
Walmart’s grant programs are a good fit for organizations that aim to provide opportunities, advance sustainability, build communities, and promote racial fairness.
4. Grants from Wells Fargo
Wells Fargo gives funds to local groups to help low-income neighborhoods.
Women-Owned Business Startup Grants
Many groups are striving to help women entrepreneurs build their businesses.
Two popular women’s entrepreneurship grants are as follows:
1. Amber Grant
Amber Grant is a well-known female businesswoman. Every month, the Amber Grant Foundation distributes at least $10,000 in Amber grant funds.
2. The Cartier Women’s Initiative
Women-owned enterprises can compete for regional prizes and the Science & Technology Pioneer Award through the Cartier Women’s Initiative.
Veteran-Owned Business Startup Grants
Here are two popular veteran-owned company launch grants:
1. The StreetShares Foundation, for starters.
The StreetShares Foundation’s Veteran Small Business Award is a well-known cash grant for veterans in need of assistance.
2. Assistance Programs for Veterans
Under veteran aid programs, the federal government sets aside a particular amount of contracting money each year for firms owned by veterans.
Grants for Small Businesses that are Competitive
Because so many individuals apply for these awards, they are quite competitive. Without a sure, getting these scholarships is difficult, but the grant money makes it worthwhile to compete.
1. Small Business Grants from FedEx
The FedEx Small Business Grant Contest’s top prize winner will get $50,000 in addition to $7,500 in FedEx Office print services.
2. Initiative for Visas Everywhere
The Visa Everywhere Initiative provides business subsidies to help established firms shine even brighter. Validation, visibility, and monetary rewards are given to regional and worldwide finalist teams.
A grant is an excellent approach to get funds for your company. When it comes to getting a grant, though, the competition is strong. As a result, it’s always a good idea to prepare for a grant ahead of time – understand the application procedure well to prevent being denied.
Whether you manage a small firm or a large corporation, you can almost always locate a grant, and receiving one can provide some financial security. So, take a closer look. GRANTS.GOV and CHALLENGE.GOV are the best locations to go for government assistance and to learn about available free money chances.