Government Grants for Small Business - How to Find Free Small Business Grants

According to general business statistics, collected by the U.S. Government, billions of dollars are donated each year to a number of grant awarding agencies throughout the country.  Theses agencies distribute these grants to U.S. taxpayers who apply and qualify for them. They are nontaxable, require no collateral or repayment, and serve a wide range of practical causes. They do not required credit checks, and therefore are not awarded based on ones creditworthiness.  Small business grants are one of the most common government financial assistance programs, and are generally available to new and existing small business owners.  Anyone can quality provided that one has a business plan, and can show evidence that the business will be profitable and serve the public.  However, one must first know how to go about finding free small business grants in order to apply and qualify for one.

One of the most important prerequisites for approval of a free small business grant is your business brand.  Branding is a fundamental way to set your business apart from your competitors.  Your brand is the value, recognition, and service your business brings to your customers and clients.  Branding your business is particularly critical if want your customers to remember your name, and therefore refer you to others.  First, you must state your mission, and what service you intend to provide.  Next, you must identify your principle customers, and specify the value that you are prepared to offer them.  Identify the features and the benefits that they will enjoy if they do business with you.  Lastly, make a point of mapping out how you will reinvent your business each time there is a shift in your market.

The major key to finding a free small business grant is to determine the category that relates to your business.  For example, many business grants are offered to specific gender, ethnic, or age groups.  Other categories include industry types, physical disabilities, and geographical locations.  Therefore, you should take a close look at your business, and make note of exactly which category best corresponds to your business.  Don’t limit your business to simply one category.  For example, if your enterprise run by women of color with physical disabilities, and is located in a low income area; look for grants in each of those categories.  Also, look into categories that may not directly correspond to your business.  For instance, if your business is a welfare-to-work program for women, and you find grants that offer assistance to low income single mothers; consider applying for those grants as well.

First, it is important to note that finding and applying for free small business grants are very tedious and time-consuming activities.  It takes awhile to find a grant that matches your business.  Then, the approval process is very lengthy.  Therefore, make certain that you meet all the specific eligibility requirements, and that all of your paperwork is filled out completely.  Grant proposals that are incomplete, or contain inaccurate information can result in a delay in the application processing stage, and can even result in your application being cancelled.  Therefore, be diligent in proofreading your paperwork before sending it off.

It’s a good idea to contact the Small Business Administration (SBA).  The SBA does not generally offer free small business grants to commercial companies.  SBA grants are mostly issued to nonprofit organizations, educational institutions, and charities.  However, it does offers a wide range of loan programs.  It may also provide contact information on certain funding organizations with available small business grants.  Therefore, you should contact your local SBA, and see if they have suggestions on where you can look to locate financial support.

You don’t have to rely solely on government grants for small businesses for funding.  You can also look into grants from private individuals.  However, there are usually conditions that you must meet in order to quality for private grants.  For example, private grantors may require that you allocate part of your funds to creating jobs, providing training programs, or participating in community development interests.  Try contacting your local SBA for information on these private grants.

Each state has its own agency that administers free small business grants.  The Department of Commerce or Economic Development Agency collects the currency, and then disburses it to these state funding agencies specifically as free small business grants.  You can find your state economic development agency by going on the web, and typing in the Economic Development Directory in the Google search bar.  This will bring up the directory site, which will contain an exhaustive directory list of thousands economic development agencies, funding associations, and consultants.  These directories are updated regularly.

You should also look for foundation grants at the Foundation Center.  The Foundation Center gives reliable data on U.S. based foundations sources, corporate sponsors, and publicly-known charities.  However, these associations primarily offer these grants to non-profit organizations.  If you own a commercial business, it will prove to be difficult getting approval for foundation grants.  However, you can legally craft your commercial small business to have a non-profit section that provides a public benefit.  For example, your business can be a real estate brokerage with a non-profit section that participates in constructing free housing for the homeless.  Look up the Foundation Center online to get a list of these foundation grants.

If you are seeking a small business grant money for job training programs, you should consider applying for workplace training grants.  These types of grants are first-rate for business owners offering on-the-job training to employees in management, finance, and customer relations.  In fact, many states award corporate workplace training grants that are as high as $20 million.  If you wish to get more information on how to find and apply for these type of grants, you should contact your state’s department of labor or the secretary of state’s office.

If your business provides technological services, you have a good chance at receiving a small business certificate.  You can also apply for a certificate if your business is unrelated to technology, but you may not have as much success as tech-based companies.  Small business certificates normally give top priority to minority, women-owned, and handicapped-owned businesses.   Therefore, if your business falls into any of these categories, you should contact your secretary of state for more information.

Lastly, you can consult the Catalog of Federal Domestic Assistance (CFDA).  The CFDA provides a complete listing of all federal programs that provide free small business grants to state and local governments.  These grants are assessable to nonprofit organizations, educational institution, and individuals.  You can get on the CFDA website, and find the listing of programs that are available.