Looking for a US small business grant? We’ve got the resources you need and can help you apply to for more than 200 grants.
Small business grants refer to financial assistance provided by organizations to small businesses for a designated purpose. These grants are accessible to small business owners during their inception, growth, and for conducting research and development activities.
In contrast to small business loans or credit cards, grants are a non-repayable form of funding and do not negatively impact the credit score of a business. Moreover, there are no lender fees associated with acquiring a grant.
However, it is important to note that grants come with certain limitations as the funds must be utilized as prescribed by the grant provider.
Several programs exist in the US to support the costs of research & development (R&D) and encourage innovation by offering tax relief/credits. Many companies aren’t even aware they might have eligible spend for these schemes. Are you one of them?
It’s fair to say that the pros outweigh the cons when it comes to small business grants.
On the positive side, a business grant is essentially free money. Unlike a loan, it never needs to be repaid. That makes it a business funding option that’s pretty hard to beat. On top of that, once you qualify for a grant, there’s some evidence that you’ll have an easier time qualifying for more grants in the future, as other organizations will see you as a reliable candidate.
On the negative side, winning a small business grant can involve a lot of work and uncertainty. You first must find an appropriate grant to apply for, then create a detailed and compelling proposal, and finally be selected from what could be a large pool of hopeful applicants.
So, while receiving a business grant is not always easy, it is certainly desirable.
When writing a business grant proposal, it’s worth keeping the following points in mind:
Writing a successful grant application is no easy task. It’s well worth spending time to get it right. You may wish to engage the services of a professional grant writer, whether that’s a local professional or a relatively low-cost online freelancer.
One of the challenges of applying is the potentially dizzying range of options out there – each with their own criteria and processes. Join Swoop today and we can help you narrow down the best possibilities in no time.
A business grant is a sum of money given to a business by a government, charity or other organization. Usually, business grants are designed to promote certain social or economic goals, such as strengthening or developing certain industry sectors or creating opportunities for underrepresented groups in society. Unlike business loans, grants are non-repayable.
Interested? Join Swoop to start seeing the best business grant options in minutes.
Yes, it is possible to get a grant to start a business, but it may not be easy. In general, grant providers prefer to support businesses that already have at least a modest track record. From a risk-management point of view, grantees might be reluctant to hand out free money to unproven entrepreneurs. They may have more confidence providing it to those who have demonstrated their determination by first risking their own resources.
No, you almost never have to pay grant funds back. Rare exceptions may occur if an entrepreneur has received or used the grant funds improperly.
Yes, business grants are usually considered taxable income. It is important to take this into consideration when planning your business finances.
Written by
Michael David is a financial writer and former investment advisor. Writing for Capital Group, Dimensional Fund Advisors, Franklin Templeton Investments, HSBC, Invesco, PIMCO, Vanguard, global insurance companies, major banks and others, he has educated professionals, business owners and consumers about strategies for investing, insurance, banking and corporate finance for more than 20 years.
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