Welcome to Business Grants 101, Penny Hoarders.
Im starting this class with an analogy: Small business grants are to small businesses asscholarshipsare to colleges.
I always hated analogies, but this sounds promising, right?
If youre looking tostart a business or fund an existing one a grant could be a great financial solution.
Read on to learn more (and decode that pesky analogy sorry, guys).
Whats a Small Business Grant?
Lets consult the expert.
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And if you are?
Its not a grant.
Nor are you required to give up part of your company or your educated brain.
Fortunately, this doesnt require maintaining a certain GPA.
You bet your competitor will be mad that the government is funding the new kid on the block.
Besides, thatsourtax money, and not everyone likes chocolate.
This is why most government-funded grants go to nonprofits.
So if youre a nonprofit, great.
Check outgrants.govfor some good opportunities.
But if youre in the business of making money, youll want to look into private grants.
Thats where the action is if you could find them, Shelton says.
Im not going to lie its difficult.
But Shelton made me feel better.
You have to question, why would [a company] give a grant?
So, really, theres no big incentive for entities to hand out money.
But of course there are those gems usually big-name brands that extend a helping hand.
Lucky for you, I found three.
I cant stress that enough.
And give yourselfplentyof time to apply.
Like scholarships, these grant applications can be real hair-pullers.
Theyre also super competitive, so spend time perfecting every detail.
This year, 10 businesses were awarded up to $25,000.
Go ahead and make a reminder for yourself to check back in for the spring 2017 contest announcement.
2.Miller Lite Tap The Future Grant
Yes, even a beer giant offers small business grants.
This annual competition gives entrepreneurs a chance to win more than $200,000.
And, like the FedEx contest, this isnt just a funding opportunity.
Youll be able to attend business seminars and rub elbows with business superstars like Daymond John.
(Id need a Miller for that.)
In the meantime, start drawing up your business plan.
3.The Zach Grant
Context: Zach is the founder of Fusian, a restaurant chain.
He applied for a small business loan and couldnt snag one, which sparked his cousin Jared to investigate.
In short, Jared createdFundera, a site to help small business entrepreneurs (and worth checking out).
After its establishment, Fundera created the Zach Grant.
For this grant, you wont need to lace your pitch with business jargon.
Instead, record a three-minute video explaining why you created your small business.
Then, follow the subsequent instructions.You could win $2,500.
The grant is awarded every year, so keep posted.
Wherever youre located, check with your countys economic development department.
It wont offer you a grant, but sometimes it offers low-interest loans.
After all, many cities are in the business of growth, so they mightwantyour business.
Theres also something calledHUBZone, which stands for Historically Underutilized Business Zones.
The programs part of theU.S.
Small Business Administrationand encourages small companies to set up shop in disadvantaged areas.
This allows areas to increase employment rates.
It fits many peoples agendas, Shelton says.
Carson Kohler (@CarsonKohler) is a staff writer at The Penny Hoarder.
It sounds appealing right?
Check it out here!