Did you know that you might be eligible to receive a grant from the government to fund your small business? Unlike a loan, a grant is money that you don’t need to pay back. However, do note that eligibility is rare and you must meet very specific guidelines in order to receive a business grant.
State and federal government organizations offer business grants that are funded by tax dollars. Most of the time, they are not given to those that need to pay off business debt, take care of operational costs, or start a new business. Usually, they are reserved exclusively for existing nonprofit organizations.
These grants are usually only offered to businesses whose services or operations offer certain benefits to the public. As such, the types of businesses that are eligible are ones that fall into specific industries and are along the lines of conservation efforts, environmental causes, medical and scientific research, and other related programs.
Throughout your research for business grants, you may have come across something called the SBIR (Small Business Innovation Research) program. Although the Small Business Administration does not provide grants, they coordinate this program. These grants are available to qualifying businesses that operate within the research and development industry. The money is meant to help certain companies develop innovative technological products that are relevant to their operations.
Be wary of websites offering paid advice on how to find small business grants. There are government websites that clearly identify business grant eligibility, and they provide free search tools for business owners that are searching for grants that they might qualify for. Grant.gov is a terrific resource for those looking for business grants, and their free grant search tool can be accessed here.
Because most traditional small businesses won’t qualify for grants, a lot of start-up business owners will take out a loan from the SBA. While this can certainly be a good option, you may want to explore the other choices you have for funding your business. If you’re receiving annuity payments, you may actually be able to sell some or all of those future payments and receive that cash now in the form of a lump sum. The money you receive from Peachtree can be used to open up that business you’ve always envisioned. Contact us today!
Nothing above is meant to provide financial or tax advice. You should meet with appropriate professionals for such services.