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NGExpert financial copywriter
Page written by Chris Godfrey. Last reviewed on September 4, 2024. Next review due October 1, 2025.
Business grants can help Missouri entrepreneurs start or grow a business, conduct valuable research, complete a project, even recover their expenses from an export drive.
The basic premise of all business grants is the same – it’s free money that your business does not have to pay back – but the funds can be used for many different purposes, such as financing business innovation, community improvements, export growth, technology advancement, agricultural programs and more.
Small business grants can be sourced from different types of entity:
Provided by the US government, federal grants are typically given to Missouri state or local authorities who then disburse the money to applicants on the government’s behalf. However, some federal grants may be given directly to awardees if they are active in an area that supports a national interest.
Usually provided by state government sources, these grants tend to be restricted to businesses within the state of Missouri and for projects and activities that have a state benefit – such as increasing jobs or state exports to US or overseas markets. State grants can cover many business needs, including employee salaries and training, site expansion, start-up costs, manufacturing upgrades, even building refurbishments, (especially if you’re located in an historic or disadvantaged area).
Awarded by local entities such as county and city management, these grants take a local view and are usually limited to projects and activities within the city or county boundaries. Most local grants focus on job creation, education, community improvement or supporting specific groups of people or entities.
Provided by foundations and charitable organizations, non-profit grants such as the Sky High Farm Grant, typically target underserved and disadvantaged groups, or environmental or educational needs. These grants tend to be small, but they are often the only source of funding that small ventures and citizen groups can access.
Offered by large businesses, corporate grants, such as the Fedex Small Business Grant, may target projects, other businesses, or specific groups that align with the donor’s mission. They typically support actions that serve the greater good at the local, state or national level.
The Show Me State isn’t shy when it comes to small business grants. There are many options to choose from. Here are some of the best to start you on your search:
Overseen by the US Small Business Administration (SBA), the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs encourage small organizations to engage in Federal Research and Research and Development initiatives. Almost a dozen federal agencies list grant opportunities on the SBIR website. Funding amounts vary by project. To be eligible, your business must be a US-based for-profit entity with less than 500 employees.
Offering a total of $435,000 in awards per year, this is one the more generous grants programs. The Amber Grant program awards multiple grants per year, with $10,000 being offered monthly in three separate categories (total of $30,000 per month available). Participants who win a monthly prize also automatically qualify for the draw for an annual $25,000 award – with three prizes available, one for each award category. You can apply for any of these grants by completing an online application and paying a $15 entrance fee.
MORE: Business grants for women.
Also operated by the US Small Business Administration, the Natural Resources Sales Assistance Program helps small businesses to purchase of lease government property before larger businesses can move in and claim the entire inventory. The program also provides resources such as counselling to help smaller organizations navigate the complex rules of federal government sales and leasing.
Kansas City G.I.F.T.’s Grant Program is designed to foster economic empowerment within the Black community of Kansas City, focusing on businesses that are not only Black-owned but also situated in historically underserved and economically disadvantaged areas. The grant program offers two types of grants: growth grants of $25,000/$50,000 for business expansion, and startup grants of $10,000 for new enterprises.
MORE: Grants for Black women, disabled business owners and minorities
US Grants is a one-stop portal to find and apply for government grants, stimulus packages and funding opportunities from local, State and federal government agencies. Available Missouri small business grants include funding initiatives for organizations that operate in the fields of tech, health, research, sciences, agriculture, the environment, etc.
MORE: Grants for farmers.
Missouri Grantwatch operates a directory of current grant opportunities, although not all may be specific to Indiana-based organizations. Up to 2,000 grants may be available at any one time, with award values and qualifying criteria varying by category and mission goal.
MORE: Grants for veterans.
Small business owners and entrepreneurs in Missouri can improve their chances of winning a business grant by preparing in advance and following up on their application. Key tasks include:
Before you do anything, first identify your need for the grant. Why do you need the money? What will you use it for? You must present a strong case for funding to secure a business grant. No matter if you want to start a business, grow an existing company, conduct research or undertake a creative project, having a clear vision of what you wish to achieve with the grant money is crucial.
Once you’ve done that and your goals are clear, search for grants in Missouri that fit your mission objectives. Be sure to identify the qualification rules, time limits and any restrictions that may apply. Don’t waste your time applying for grants that you are not eligible for.
Few grant programs are the same. As well as the application forms, grantors may also ask you to provide a presentation deck, submit endorsements, create a financial plan, or write a detailed grant proposal. Some may even ask you to create a compelling video. Make sure your ambitions are clear. Point out the benefits that receiving an award will deliver for your business, your community and everyone your venture will engage with. Be positive but maintain feasibility. This is your opportunity to present your case for funding in the best possible light.
Few grants require a credit check, but many will demand that your business and application meet their qualifying criteria. For example, the grant may only be open to businesses with turnover of $50,000 or less. Or, it may only be open to non-profits, so if your business is commercially motivated, the grant would not be available to you. Most grants will have unique financial criteria. Make sure you meet the requirements before submitting your application.
Once again, every grant will have unique rules on timing. Often, there will be a tight application window. If you miss it, you cannot reapply until the next funding cycle – often a year or more away. Submit your application well in advance of the posted deadline in case there are last minute issues with receipt.
Keep in mind that grantors are often inundated with applications and the review process of all submissions can take time. However, you should at least follow up with the grantor to ensure your application was received and is being processed. You could also use this time to search for other funding options in case your application is not successful.
Business loans may provide an alternative source of funding for your business or new venture. Also look at options that offer specific business loans in Missouri.
Online lenders will typically be the best option for this type of financing, but you may pay higher interest rates and fees than you would with traditional banks. Credit checks are standard with most commercial financing, but depending on the type of loan you choose, you may not need to provide collateral:
Term loans are the most common type of commercial loan. You receive a single, lump-sum cash injection and then pay it back in regular instalments over a fixed period of up to 25 years. Collateral may be required. Also look at small business loans in Missouri.
A business line of credit is a business loan that functions like a high-value credit card. Borrowers can withdraw as much as they want when they want from a loan facility up to the limit of their borrowing. You only pay interest on the sums you withdraw, not the whole credit line. This can significantly reduce your borrowing costs. Collateral may be required.
Also known as account receivables financing. Borrow against the value of your unpaid invoices. The lender will usually provide up to 95% of the invoice value within a few days or even hours of the bill being raised. Your invoices act as security for the loan, no added collateral required.
Equipment loans use the asset you’re financing as security – no added collateral is required. You use the equipment as you pay for it and the lender maintains a lien on the machinery. Once you pay the loan back, the lender releases the lien, and you own the equipment outright.
Merchant cash advances are designed for businesses that accept customer payments by credit and debit card. You borrow against the value of your card sales. As your card sales increase, your borrowing limit goes up. Pay the loan back with a fixed percentage of your card sales on a daily, weekly or monthly basis. Your sales act as security for the loan, no added collateral is required.
Revenue-based financing functions like a merchant cash advance but with higher borrowing limits. Based on the size and regularity of their total revenues, (not just their credit card sales), businesses may receive a lump sum and pay it back over a short-term schedule, typically by small deductions from their daily sales. This type of loan can usually be secured quickly as qualification rules are less intensive and credit scores are not so critical. No added collateral is required.
Nonprofit and community-based lenders can provide SBA Microloans to business owners who may struggle to secure standard business financing. Available up to $50,000, SBA microloans also come with more relaxed qualifying rules and can usually be secured with FICO scores as low as 500, or even with no credit score at all. Be aware that these type of business loans often require a personal guarantee that makes you personally responsible for the debt.
Working with business finance experts can make all the difference when applying for grant funding. Contact Swoop to discuss your borrowing needs, get help with your application and compare top quality small business grants and business loans from a choice of providers. Give your business the chance it deserves. Register with Swoop today.
Written by
Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Wells Fargo Bank, Visa, Experian, Ebay, Flywire, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of US consumer and business finance.
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