There's good news and bad news about small business grants. Good news: Entrepreneurs can sometimes obtain grants for their companies — and, unlike loans, grants don't have to be repaid. Bad news: Most grants are limited to applicants meeting highly specific qualifications in terms of background, location, industry and other factors.
The U.S. Small Business Administration offers no direct funding to businesses; instead, it supports numerous other organizations, some of which offer financial assistance. Grants from those other sources may be available to small businesses that are:
The best contacts and resources to help you get it done
Start with the SBA
While the SBA doesn't actually give grants, it does track small-business opportunities provided by other agencies ranging from the U.S. Department of Justice to the National Park Service. Note: Many involve grants of training or other services rather than cash.
I recommend: The SBA's
Federal Grant Resources portal lists grants that may be available to small businesses; from there, you can link to other agencies' sites for more details.
Get the big picture
The U.S. General Services Administration also lists federal grants and other giveaways available to small businesses. Search or browse its online catalog by category (including newest opportunities and those available to women, minorities and other groups), then contact sponsoring agencies for details.
I recommend: The
GSA's Catalog of Federal Domestic Assistance (CDFA) has listings and tips on applying for government assistance.
Think creatively
Even if you can't find a grant specifically designed to expand your company, you may find one that accomplishes the same goal by funding a project in your area of expertise. Example: The U.S. Department of Agriculture offers small-business grants for research into "problems facing American agriculture" in areas ranging from nutrition to marketing.
I recommend: Browse or search the listings at
Grants.gov. The federal
Small Business Innovation Research (SBIR) and
Small Business Technology Transfer (SBTT) programs also award project-oriented grants, primarily for high-tech initiatives.
Look close to home
State governments sometimes offer grants and frequently provide other small-business assistance, such as advice, networking opportunities and training. Local economic-development agencies may also offer help, especially in areas targeted for redevelopment.
I recommend: About.com lists Web sites for all
state commerce offices; many such state sites provide links to community economic-development groups.
Contact a Small Business Development Center
This network of agencies, a public-private partnership, offers free advice and other services. SBDC staffers may be able to steer you toward applicable state, regional and local agencies offering small-business grants, advice and services.
I recommend: Find the
SBDC branch nearest you.
Prepare a grant proposal
Writing a grant proposal isn't rocket science — but it does have to be done correctly. You can outsource your effort, or you can do it yourself.
I recommend: Federal Grants Wire offers expert step-by-step advice for researching and writing a grant proposal. The Catalog of Federal Domestic Assistance (CFDA) also offers
proposal-writing instructions.