Demystifying Small Business Grants
By Dan Massy
Osceola Economic
October 22, 2007
If you watch late night TV chances are you’ve seen the guy in the plaid suit coat selling the book promising to get you money from the federal government for everything from going to school to starting your own business. Save your money! What I hope to do is set the record straight. The fact is individuals and small businesses usually do not receive grant funding. There are some grant programs, but they are extremely difficult to qualify for and in some cases the reporting requirements are burdensome.
Listed below are the types of programs, and in some cases specific programs, that I am aware of.
Federal Grants
Federal funding agencies are very specific concerning the businesses or projects they will grant money to. A key concept to consider is that the grant is available because your business will benefit society or the general population not because you need the money. For example, the federal government might award a grant to a company doing research on a specific project related to finding a cure for a disease, but will not do so for someone to open a bakery.
· GRANTS.GOV; www.grants.gov: Grants.gov is a central storehouse for information on over 1,000 grant programs and access to approximately $400 billion in annual awards. By registering once on this site, your organization can apply for grants from the 26 federal grant-making agencies.
· Catalog of Federal Domestic Assistance; www.cfda.gov: Grants are one of 15 types of assistance available on this website.
· U.S. Small Business Administration; www.sba.gov/expanding/grants.html: The SBA does not provide grants; however it does provide information on organizations and sites that can assist you in locating special purpose grants.
· Small Business Innovation Research;
http://grants.nih.gov/grants/funding/sbirsttr_programs.htm: Research grants and contracts are available through federal agencies. This could be a good fit if you are a scientist. Currently, eleven Federal agencies participate in the SBIR program. To date, over $12 billion has been awarded by the SBIR program to various small businesses.
Grants from
Foundations
If you are looking to start a small business keep in mind that funding from foundations is usually given to non-profits. Foundations normally give grants to programs in their area of interest. If you want to research foundations an excellent resource is www.fdncenter.org.
Community Incentives
Often communities try to attract new businesses or help existing businesses expand by offering incentives. Check with the chamber of commerce of the community you would like to locate to or expand in to see if there are programs available. If there is no chamber of commerce contact the local unit of government office.
Competitions
Although not technically grants there are competitions that offer awards to the winners.
The Great Lakes Entrepreneur Quest is an annual statewide competition for individuals and teams that have a business concept with a high growth potential. Thirteen cash and in-kind awards are given in the categories of New Business Idea, Emerging Company, and Innovation Awards. You can learn more about the Great Lakes Entrepreneur Quest at www.gleq.org.
Trade Associations
Are you a member of a trade association? If so keep connected as these organizations offer their members various forms of assistance.