Each year, the U.S. Federal government awards more than $500 billion in grants. Of these, about $25 billion (5%) are awarded to for-profit businesses of all sizes. And while $25 billion is certainly a lot of money, virtually all of these grants were awarded for very specific purposes that support strategic national priorities such as:
- National security and public safety
- Health care innovation, cost savings and research
- Education, particularly college- and career-readiness, providing equitable education services for students with special needs or disabilities and topics relating to Science, Technology, Engineering or Mathematics (STEM)
- Energy savings and renewable energy
- Telecommunications
- Exceptional advances in technological innovation
- Major advances in scientific research
- Workforce training and education in high-growth fields and industries
- Agriculture- and food-related research and projects
With this in mind, the reality is that of the millions of small businesses operating in the United States, only a small percentage are engaged in activities that are eligible to receive grants from the federal government. For the most part, nearly all federal grant programs that are open to small businesses are focused on very specific research and development activities that are aligned to the strategic national priorities outlined above. As a result, very (very) few small businesses are actually in a position to successfully obtain a grant from the U.S. federal government.
However, in many communities throughout the United States, there ARE some grants to support the growth and development of businesses both small and large. Where available, these grants are generally offered at the city or county level and are used to the growth and development of local small businesses, encourage businesses to remain in the area and entice new businesses to the community. Unlike those offered by the federal government, local business grants are awarded for purposes and activities far broader than strategic national priorities. Keep in mind though that the dollar amount of local business grants tends to be much smaller than those available through the federal government. Some of the purposes and activities often supported by local business grants include (but are not limited to):
- Storefront renovation
- Equipment purchases
- Business expansion
- Job creation
- Job retention
- Business relocation
A few larger cities also offer access to funding through low-cost financing, loan guarantees or in a few cases, government-backed venture capital. A few local grant opportunities are profiled below.
‘Mom and Pop Small Business Grant’ program
Administrator: South Florida, the Miami-Dade County
Deadline: Ongoing
Funding available: $1,000 – $5,000
Function: Grants support a diverse range of activities including the purchase of computers, software and equipment, marketing and advertising, participating in training and much more.
Who can apply: Small businesses in the community
More Information: To learn more about this program, click here.
Small Business Improvement Fund (SBIF)
Administrator: City of Chicago
Deadline: Ongoing
Funding available: up to $150,000 (per project/per applicant)
Function: SBIF grants support projects such as building improvements and even the purchase of adjacent properties for business expansion or parking.
Who can apply: Small businesses
More Information: To learn more about this program, click here.
Building Renovation Matching Grant Program
Administrator: The City of Rochester, New York
Deadline: Ongoing
Funding available: up to $30,000
Function: Interior or exterior building renovations and/or building improvements, including security enhancements
Who can apply: Qualified businesses located within or moving into the city of Rochester
More Information: To learn more about this program, click here.
Main Street Assistance Program
Administrator: The City of Rochester, New York
Deadline: Ongoing
Funding available: Low interest loans up to $250,000; 50/50 matching grants of up to $30,000
Function: Furniture, fixture and equipment purchases, working capital, real estate acquisition, interior and exterior building improvements and environmental remediation
Who can apply: Businesses and property owners located in the downtown Rochester area
More Information: To learn more about this program, click here.
Financial Assistance Program
Administrator: The City of Rochester, New York
Deadline: Ongoing
Funding available: up to $250,000
Function: Furniture, fixture and equipment purchases, machinery acquisition, working capital and the acquisition, construction and/or renovation of real estate
Who can apply: New or expanding city businesses to stimulate private sector job retention and/or creation
More Information: To learn more about this program, click here.
Targeted Business Assistance Program
Administrator: The City of Rochester, New York
Deadline: Ongoing
Funding available: low interest loans up to $150,000; 50/50 matching equity grants of up to $10,000
Function: Furniture, fixture and equipment purchases, working capital and acquisition, construction and/or renovation of real estate
Who can apply: Targeted small businesses located within or moving into the City of Rochester
More Information: To learn more about this program, click here.
Pre-Development Matching Grant Program
Administrator: The City of Rochester, New York
Deadline: Ongoing
Funding available: up to $25,000
Function: Program funds may be used for environmental investigations and other studies that are needed to determine the cost of redeveloping brownfields or other city sites.
Who can apply: Established firms/developers of industrial or large commercial projects that meet the City’s economic development goals
More Information: To learn more about this program, click here.
Main Street Challenge Program
Administrator: City of Spartanburg, South Carolina
Deadline: Ongoing
Funding available: $12,000 in funds plus $8,000 in in-kind support and services
Function: Matches winning businesses with participating downtown property owners
Who can apply: Small businesses
The San Francisco Community Challenge Grant Program (CCG)
Administrator: San Francisco (California)
Deadline: Ongoing
Funding available: Not specified
Function: Engage residents and businesses in creating green spaces, gathering places, gardens, mini-parks, public art, and other neighborhood amenities featuring and applying ecologically friendly amenities and practices.
Who can apply: Community groups, businesses, schools and nonprofit organizations
More Information: To learn more about this program, click here.
Some local governments also have larger grant programs as well, awarding grants of a million dollars or more. However, these larger awards are reserved for businesses with significant potential to have a lasting economic impact and create jobs. To qualify for these funds, businesses must usually commit to creating and retaining a minimum number of jobs in a particular salary range for a specified period of time. Grants of this nature come with a lot of strings attached (they always do) and requirements that must be met—otherwise, the grant funds must be repaid back to the city.
Where to find local government business grants
Most of local grant opportunities are not highly publicized so you will need to call your local government offices and/or search their websites to find them. As the local ‘hub’ of economic development activities they will know about grants that may be available to businesses in your area. Here are some search terms I typically use to find city-specific business grant opportunities:
- “city name” AND “small business grants”
- “city name” AND “business grants”
- “city name” AND “economic development grants”
- “city name” AND “small business incentives”
Public library
Public libraries seem to be a forgotten resource but if you’re looking for business grants, it should definitely be part of your search strategy. Public libraries are an incredible resource for information that you just can’t find any place else. Go to your library and ask the librarian about the resources they have for finding small business grants. They are generally extremely helpful and can provide a lot of valuable information.
Networking
Making the most of your professional networks is another excellent strategy to uncover little-known business grant opportunities. When attending professional or networking events be sure to ask people that you meet about opportunities that may be right for your business. Sometimes small business grants are given to persons who happen be in the right place at the right time. Make the most of the power of relationships if you have them. If you don’t have these relationships, then go out and make them. Look online for business- and economic development-related groups, associations, organizations, meetings and events in your area. Attend the events and introduce yourself. Use common sense though—don’t be a nuisance and turn people off. Be professional and polite and when the right opportunity comes up, tell them what you want to do.
Google alert
This is a great tool, and it’s absolutely free. All you need to do is set up an account at Google.com and you can create an alert that arrives in your inbox. Set up targeted alerts using phrases (with the quotes) such as “business grant” or “grants for small business.” Pick six to eight phrases that suit your needs and set up an alert for each. Again, you’ll have to sift through some garbage but every so often you’ll run into a true gem.
To set up an alert first go to www.google.com/alerts. On that page you will see five boxes. You put your search term(s) in the first box (see the example above). Next is a drop-down box where you can choose the type of content you would like Google to track. You should just keep the default “all.” Below that is box that allows you to select the frequency that you receive updates regarding the alert. I like to keep it a ‘once a day’ because when you set up multiple alerts you’ll find yourself sifting throughout a lot of them. Following this is the option to retrieve just the ‘best’ results or ‘all’ results. I usually stick with just the ‘best’ results to cut down on time spent rooting out silly stuff I don’t want to see. Lastly, you can enter the email address where you would like your alerts to be delivered. You can set up as many alerts as you like, editing and deleting them as often as needed.
