Small business is the foundation of the economy. To provide initial and then stable financial support for such a venture is challenging without going in debt.

Only 65 percent of small undertakings will make till the two-year mark. One of the most common reasons for the failure is exhaustion of the invested capital: 29 percent of enterprises have to close down due to the lack of finances.

The first solution that comes to mind is to borrow money from banking institutions. Some young entrepreneurs even consider bad credit installment loans to cover some small expenses. But with unstable profit, it can be a destructive option for your undertaking.

There’s a way around for entrepreneurs who can’t source their small companies with own funds

Startup and Small Business Grants

No-return investments are available for this segment including small business startup grants. It’s a harder-to-get remedy to keep your business running. But the result is worth it. Such offers often include other kinds of support, like a technical one, and allow getting some publicity for the launching initiative.

If you decide that it’s an option for your situation, you have to do a research. After typing a few queries in a search engine you’ll realize that it’s not so easy. Unlike hunting for suitable loans there are no alluring ads and millions of appropriate offerings.

To avoid frustrations in the beginning and not to skip potential opportunities, read the following introduction to the world of grants for small business.

What Organizations Offer Small Business Grants

To specify your quest, you need to define the source you would like to get financial aid from. It’s important due to requirements established for the applicants and regulations for the winners. This type of funding can be offered by:

1. Government Institutions. Despite popular beliefs, it’s not a gap in the country’s strategy. Government grants for small business are available and can be acquired under certain conditions. Unfortunately, their promotion is usually poor. That's why you need the initial knowledge of the places where to find this treasure.

Review the successive search alternatives to discover if you can become a user of one of them. Explore not just country but also local proposals to raise your chances.

• Small Business Administration. SBA provides small business grants for women products and services innovations. InnovateHER is one of the awards established by the institution with $70,000 total funding for such startups. SBA also offers loyal loan programs for talented entrepreneurs.

Other helpful options administrated by this organization are Small Business Innovation Research (SBIR) and its branch Small Business Technology Transfer Program (STTR).

More than 35 years SBIR supports small business with a commercial attitude by financing investigation and product development stages with over $30 billion. STTR provides similar services but implies obligatory cooperation with a research institution. Unlike SBIR that has 12 participating agencies it has only 5, but they include NASA and NSF.

• Federal and state catalogs. If you’re looking for the list of current federal supporting programs you should explore the online database of The General Services Administration: Catalog of Federal Domestic Assistance (CDFA). Their offers cover grants, loans, training and contracting proposals.

The Council of State Governments runs own State Business Incentives Database. It’s also a selection of business help opportunities but organized by states. Choose your region to discover what kinds of loans, grants, and tax credits local authorities propose.

• Online portals. There are certain websites that have a collection of available funding programs including small business grants for veterans, minorities, etc. For instance, Grants.gov provide a mobile app and a wide range of filters to simplify the search for an applicant.

Another federal informative portal is USA.gov. Using Access Financing Tool, you should fill out a short survey about you and your undertaking, and you’ll get a list of eligible options. To get additional money means you can also enter one of the government-sponsored contests published on Challenge.gov which remunerations can reach millions of dollars. They can set specific tasks to find a required solution as well as accept ready ones for comparison.

• Federal agencies. Research institutes, government departments, and agencies can announce own competitions to gain grants. You can regularly find ones in scopes of technology, agriculture, environment protection, and education.

The requirements vary in the status of applicants and companies: from students to experienced businessman, from non-profit to commercial organizations.

Federal financial assistance is offered for various segments of the society and enterprises on different stages. But the hook is that they are dedicated to companies that bring change in the field of science, medicine, and other vital scopes.

The application and selection processes are intimidating, but it’s not a reason to disregard federal grants. Even if you’re not the chosen one this year it’s a great way to evaluate your undertaking and attract the attention of other investors and advisors.

2. Corporations and Individuals. Some conglomerates like Google, Coca-Cole, FedEx, Visa, etc., as well as non-profit foundations and successful personas, also participate in granting small business. Their requirements are mostly similar to federal ones. But they can be more loyal and allow to find guidelines and support from professionals who have changed the course of the certain field.

The list of annual opportunities includes:

• Dare to Dream Grant Program for students;
• Cartier’s Award and Eileen Fisher’s Program for women;
• FedEx and LendingTree grant contests for small business;
• Walmart and Wells Fargo initiatives for non-profit and educational organizations.

The problem is that no one runs a regularly updated database of such proposals. Therefore, an initial search can be tedious, but your efforts won’t be worthless. Grant amounts differ from hundreds to hundreds thousand dollars. Additionally, such funding is usually less restricted and presented in more fields.

What Do You Need to Apply for Grants?

The requirements the applicants should meet extremely vary from program to program. They can concern:

• business focus;
• market scope;
• staff size;
• developing product or service type;
• application of proposing money;
• other demands.

This factor can significantly narrow down your range of options.

To find out the full list of regulations you should explore the website of the official organization that maintains the grant. Scrupulously go through terms and conditions before you submit an application. Consider that only general information can be presented on the site. That’s why search out downloadable materials or even contact the administration center to clarify the uncertainties.

Grant Alternatives

Entering a grant competition can be extremely rewarding. But due to the fierce competition, it can’t always meet the financial needs of your business. Especially if they are urgent. Not to fail you should have a backup plan and consider other no-return or common funding options.

If loans and exchange of money to the part of the ownership (equity investments) don’t feel right you can perform a deliberate search for a partner or an investor who’ll believe in your idea. Consider that having a co-founder allows enterprises to raise 30% more investments.

How to Raise Your Business Success Odds?

When you start a small business the knowledge of financing peculiarities and options is vital. In this segment people usually tend to jump into implementation ignoring thoughtful preparation and organization of the enterprise processes.

Sure, it’s always a chance that someone will beat you by presenting an alternative product or service earlier. But the extreme rush and negligible ignorance can nullify the bonus you get from the first place in the release competition. Only 40 percent of owners are proficient in the small enterprise finances. That affects not only their current situation but also make them dismiss opportunities for the business growth and development.

Exploring funding options are on the top of the to-do list with the market research for new enterprises. Grants for small business startup companies can be a great solution for the initial capital. That will speed up the launch and give time to find more sources of finances.