ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Small Business Grants: Free Money For Your Business

Updated on October 2, 2018
Joy Poe profile image

Joy Poe is a mixed media artist and is currently enrolled in a Master of Entrepreneurship program through Western Carolina University.

Small Business Grants: Free Money for your Business

Free money for your business may seem too good to be true, but the truth is there is grant money available to a wide variety of small businesses. The Small Business Association has a pretty large definition for small business. In fact, most mom and pop businesses do not even come close to the SBA’s definition of small business in either income or employee numbers. “The two most widely used standards to qualify a business as small are 500 employees for most manufacturing and mining industries and $7.5 million in average annual receipts for many non-manufacturing industries” (Beesley, 2014).

Federal Grants

It is important to denote that this is a size definition used by the U.S. government to determine if a business is able to apply for their small business grants. These government grants are called the Small Business Innovation Research Grant and the Small Business Technical Transfer Grant. Both of these grant opportunities, funded by federal agencies with budgets greater than one million dollars, aim to stimulate innovation, research, and development, as well as collaboration between universities, entrepreneurs, and the agencies. The grants are broken down into three phases. In Phase I, the business must establish the merit, feasibility, and commercial potential of the research and development. These grants are less than $150,000 and should be completed within six months. Phase II supports the continuation of the Phase I research and development. Funding is based on the results but is less than one million dollars and should be completed within two years. During Phase III, the business is able to reap the benefits of extended research and development by pursuing commercialization of the developed product. The granting agency no longer funds this phase, but there is the potential for funding through other sources.

Small Business

The definition set forth by the SBA can be misleading, as a small business with 500 employees is quite sizeable when compared to a startup tech company with only ten employees. A small tech company will have strong and mighty competition for these government grants. While this should not dissuade a tiny company from applying to these government grants, it should put the competition in perspective. These well-funded, extensive government grants are essential to American innovation and entrepreneurship, but a start-up would be wise to look for grant money a little closer to home.

Resources for Grant Money

Just like the saying, it takes a village to raise a child, it also takes a village to grow a business. Perhaps the best and most rewarding place to look for small business grants is in your own back yard. Your local economic development center is a great place to begin a grant search close to home, and they may even offer insight into the kind of businesses your area is hoping to attract. There are small business centers all over the country, and many of them have grant money in the budget to help entrepreneurs start up and grow their businesses. Many agencies set up grants that serve a particular kind of entrepreneur such as women, minorities, or veterans. A web search can quickly find grants applicable to a certain population or region. Each state will have small business grants available for supporting their economy, and there may even be funds at the municipal level. Another great resource for grant money is corporations. With the increasing demand for corporate social responsibility and the corporate world’s need for fresh and innovative ideas, many well-branded corporations have funding set aside to support their local economy and create an influx of innovation for their research and development.

Grow Your Business with Grant Money

Competition for grant money will always be tough because most small businesses can use a little free money. It is important to make sure your business qualifies for the grant you are applying to, so make sure to carefully look over application requirements before taking time to submit an application. Through a little bit of research and a lot of preparation, you can grow your business through grant funding.

© 2018 Joy Poe

Comments

    0 of 8192 characters used
    Post Comment
    • Natalie Newman profile image

      Natalie Newman 

      20 months ago from Western North Carolina

      It is amazing what is considered small. Great read, very informative!

    • Nancy C-W profile image

      Nancy L Critcher-White 

      20 months ago from Asheville, NC

      I was surprised at the SBA's definition of "small". Overall great information on the types of grants available to small business owners especially if your business falls into one of the demographic categories with designated funds.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://maven.io/company/pages/privacy

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)
    ClickscoThis is a data management platform studying reader behavior (Privacy Policy)