When starting a business there can be a number of thoughts that might make you apprehensive to begin. I think we can all agree that money is one of the biggest barriers to entry. It is the reason why many people quit while they’re ahead. But what if I told you that funding can be easier to attain than you think? I am not talking about loans from a bank or selling your prized possessions. I am here to tell you about free grants.
What are grants?
If you went to college you likely know all about financial aid and how it is made up of loans and grants. The difference between the two is that you must pay back loans, and some with interest. Grants, however, you don’t have to. That is what is great about grants, it is essentially money awarded to you that does not have to be repaid. Grants can be given by the government, private companies, and even by individuals.
How can I tell if a grant is legitimate or a scam?
Now before you start applying for every grant you see, there are a few things that you need to know. There are false grants out there made by those who want to take advantage of others. Here are a few things to keep an eye out for when applying for grants:
- All grants are competitive. If you are told that you are guaranteed to be awarded, that can be a red flag, as all applications must be reviewed by the organization providing the grant.
- You should not be expected to pay any fees to apply. Grants are awarded per the eligibility requirements listed in the application. If someone is asking you to pay to receive a grant, they are likely illegitimate and looking to scam you.
- Were you awarded a grant you never applied for? This is a scam that many people fall prey to, but you must be careful. Always check the source of funding to determine if it is from a reputable organization. Also, be sure to check if you ever even applied to it.
- Did you receive a message that you are eligible for a grant? Most grants, especially federal ones, will not reach out to you if you have not sent in an application.
Free grants that you can use to start a business:
To find grants that you can use to start your own business, you can look online. There are many databases that you can subscribe to to get access to new grants posted daily. Unfortunately, that can get expensive. Please note that you would not be paying a fee to apply for grants. Rather you are paying to access a list of grants someone else is compiling for you.
However, we have compiled a free list of grants for you to access and apply for! Take a look at the grants listed below:
- The Minnesota Emerging Entrepreneur Loan Program (ELP) provides grant funding to a network of nonprofit lenders that use these funds for loans to start and expand businesses throughout the state. If you are a minority, low-income person, woman, veteran, and/or person with disabilities, then you should definitely check out this grant!
- If you are a small business owner in San Francisco, this accessibility grant will give you up to $10,000 to make your business more accessible. Applications are accepted on a rolling basis so be sure to check out the link to see if your business is eligible.
- The US Department of Agriculture has several funding opportunities. These are available to stimulate the start-up of new businesses and the growth of existing ones. Take a look at this link to find grants for rural development business programs.
- The Minority Business Development Agency offers grants for minority-owned businesses that want to break out into a new industry. Barriers to entry would make this difficult. However, MBDA can aid you in finding funding and a competitive advantage.
- The 500 Global Flagship Accelerator Program offers a seed investment of $150,000 to focus on start-up growth and scaling!
- America’s Seed Fund offers up to $2 million for U.S. startups and small businesses that are developing innovative technology. Applications are accepted on a rolling basis, so don’t hesitate to check this opportunity out.
Additional Resources
To access more free grants, the US Chamber of Commerce has a list of 65 grants, loans, and programs. The perfect list that you can utilize to start a business. I listed a few of them above. So, if you are looking for grants in different areas please do not hesitate to check this article from the US Chamber of Commerce.
Did you know that your local library also has a database that you can access for free to find grants and funding for your business? Access this link to find which libraries local to you have a directory so that you can win more funding!