First-time entrepreneurs have a number of things to deal with when it comes to successfully running their business, and the early stages are usually the most difficult.
Between dealing with the high costs of keeping an up-and-coming business afloat and making sure your employees are paid regularly, you’re eventually going to need some outside help.
With government assistance, you can gain access to loans and grants that can go towards your business expenses and make things just a tiny bit easier in terms of keeping your business running.
In the case of a grant, the money is considered to be akin to a gift from the federal government, and it doesn’t have to be paid back so long as you respect the terms of the contract you sign upon being approved.
Keep reading to learn more about government grants and how you can use them to grow your business into an empire.
The applications
Generally, these government grants are awarded to small, up-and-coming or soon-to-be-opened businesses, as a means of giving citizens an incentive to start their own entrepreneurship.
This helps create job openings where there were none, improving quality of life in designated areas and giving room for growth, as some businesses just need a tiny nudge to get things going.
For the majority of small business owners, these grants mean a lot, and they could completely change the course a business was going, as additional money means employee wages can be paid off without having to dig into company finances that would otherwise be dedicated to growth.
We’ll go over some of the grants the federal government has to offer as well as some details regarding each one, giving you some insight into what you can do to maximize your chances of being approved for government funding.
Grant vs. Loan
The one major difference between grants and loans is that a grant never has to be paid back, whereas loans come with interest rates and a fixed amount of time you’re given to fully repay it.
That being said, the amount of money you can get from a grant is significantly lower than that of a loan, and if you feel like your business is just a step away from greatness, a loan may be the better option for you.
By securing more money, you can guarantee the success of your business, which will, in turn, give you the ability to pay the loan back on time without it having too great of an impact on your financial stability and well-being.
Oftentimes, a business won’t be able to qualify for a grant, and due to how easier it is to get a loan, their options will be limited, and if they absolutely need it to keep a business growing, it can come as a saving grace.
Small Business Innovation Research
At the time, SBIR programs are one of the best granting opportunities for growing businesses, as they offer grants to a number of small businesses that are dedicated to researching a certain scientific area.
However, these grants are highly competitive, and your business will have to put in a lot of work in order to qualify for this opportunity.
All of this money is a form of incentive for the companies to continue their research in hopes of commercializing the end product, usually in tandem with a number of other nonprofit organizations that can help with the research itself.
By providing access to high-quality tech and qualified talent for that specific field of research, SBIR programs can ensure that everything goes as smoothly as possible.
STEP grants
Unlike SBIR, which is a federal program, some small businesses may want to pursue funding on a state level, as it’s much less competitive and easier to get into.
With STEP funding, small businesses can gain access to SBA grants, which are given to qualified companies which show promise and look like they could increase the export of materials and revenue in the state.
On top of this, STEP offers small businesses access to their extensive database of resources and professionals who will teach small-time entrepreneurs how to properly market their businesses and increase export.
You can learn more about this program and what it has to offer on its official site, where you’ll also find the application form as well as additional information regarding the application process.
Bottom line
Running a small business is no joke, and if you consider that 50% of all small businesses fail within the first year, these granting opportunities are more important than ever before.
Keeping a company afloat in these trying times is often a losing battle, and actually growing it is nigh impossible without some outside assistance.
With government grants, first-time entrepreneurs can gain access to sufficient resources and funding to propel their business to greatness.