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NGExpert financial copywriter
Page written by Chris Godfrey. Last reviewed on September 4, 2024. Next review due October 1, 2025.
Small business grants can be an excellent way for Wisconsin business owners to fund their big ambitions. Unlike commercial loans, grants are free money – they do not need to be repaid – and credit scores and many of the usual requirements of commercial lending typically do not apply.
Wisconsin business owners seeking grant funding should expect a lengthy application process, typically needing to meet strict guidelines, timelines and other qualifying criteria. Additionally, they should be aware that competition for this type of funding is often fierce and even if they do qualify, the award sum may be small, requiring them to seek additional finance.
Many business grants are tied to specific goals – entrepreneurial, educational, creative and motivational – and selection committees have full control of the award process and the sums distributed. As well as meeting each program’s rules of eligibility, you will usually need a strong business plan that includes a feasibility study and an indication of how you will keep your venture going in the post-grant period.
State-wide government grant programs for small business owners:
Offered by the Wisconsin Economic Development Corporation and the Wisconsin Department of Agriculture, IMAG grants are designed to help Wisconsin agribusinesses launch an export initiative or expand into new export markets. To qualify, your business must be operating in Wisconsin for at least one year, and manufacturing, processing, assembling, or distributing a product that has the potential to be exported.
Companies that have not completed ExporTech™ training can receive IMAG funding up to three times with a maximum of $10,000 per grant. ExporTech™ graduates can receive IMAG funding up to six times with a maximum of $25,000 per grant. Matching funds are required at 30% of the grant award. Eligible project expenses include costs associated with trade shows and ventures, marketing, promotions, consulting services, and export education.
Not a grant, but a great way to give your business the boost it needs. The Wisconsin Entrepreneurial Training Program (ETP) is a business improvement course offered at select University of Wisconsin campuses. Using a mix of instruction, guest speakers and coaching, the ETP helps business owners navigate the complex world of modern business. The program is good for new and existing organizations and costs $1,000 per person, however, 75% of this cost may be covered by a grant from the Wisconsin Economic Development Corporation. No-cost consulting is also available.
If you’re a tech business and you need help with your business planning, this grant could be for you. Business and Commercialization micro-grants from the Wisconsin Center for Technology Commercialization may reimburse up to $4,500 that you spend on hiring an approved, independent, third party to write your comprehensive business or commercialization plan. Awardees will usually be pursuing a Phase II SBIR/STTR grant. The program is limited to businesses in certain industries.
The Value-Added Producer Grant (VAPG) program helps agricultural producers generate new products, create and expand marketing opportunities, and increase producer income. Grants are awarded through national competition and fall into two categories: Planning Grants – up to $75,000; Working Capital Grants – up to $250,000. You must provide a 100% matching fund to receive your award.
Applications are open to independent producers (includes harvesters and steering committees), agricultural producer groups, farmer- or rancher-cooperatives, and majority-controlled producer-based business ventures. You may receive special priority for an award if you are:
If government-funded grants can’t give you what you need, small business grants are also available from private sources – foundations, charities, commercial entities, etc.
Provided by the Center for Dairy Research, DBIA grants come in two different flavors:
The program is targeted at small to medium-sized farmers or processors. Eligible projects must focus on diversifying on-farm activity, creating added-value by-products and export programs. Awards of up to $100,000 are available.
This grant program supports projects that can positively impact the dairy industry as a whole. (The Fall 2023 grant cycle focused on exporting dairy products and sustainability). Awards of up to $100,000 are available.
Qualifying businesses may apply for both grant programs if they have two separate projects that meet submission guidelines.
The FruitGuys Community Fund (TFGCF) provides grants to US-based small farms and agricultural nonprofits. Grants are available up to $5,000 and funds can be used to improve operations. To qualify you must also be an agricultural nonprofit or the owner or operator of a farm or otherwise have legal access to the land where it is located. Your farm must have been a small to medium-sized working farm for at least one year before applying.
The National Association for the Self-Employed (NASE) provides business growth grants of up to $4,000 to members. Since 2006, nearly $1,000,000 has been awarded, with grants used for marketing, advertising, hiring employees, expanding facilities and other specific business needs. All minorities may apply, but you must be a member of NASE to participate. (Membership fees may be applicable).
Business loans may provide an alternative source of funding for your business or new venture. Don’t miss looking at the options for Small Business loans in Wisconsin.
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 installments over a fixed period of up to 25 years. Collateral may be required. Also look at small business loans in Wisconsin.
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.
No. Grants are not business loans. As long as you use the funds for the correct purpose, there is no need to repay the grant awards you receive.
Find grants for minorities, veterans, women, felons, black women and farmers here.
Yes. As long as your business meets the qualifying rules and there are no caps on total grant receipts, you can apply for more than one government small business grant at the same time.
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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