Check Out the Best Small Business Loan Grants

Small Business Loan Request Letter Check Out the Best Small Business Loan Grants

Small Business Loan Grants Explained

Are you thinking about starting or expanding your business? What expenses will you have to bear to improve your company’s productivity?

If your budget is too tight to bear your business expenses or you do not have enough resources for the plans you have envisioned, you could explore different types of small business loans or credits. This article offers information about small business loan grants you could get to increase the productivity of your business.

What Are Small Business Grants?

An organization can award grants to small business owners for a specific purpose, such as:

Unlike with small business loans, you do not have to:

  1. Repay small business grants
  2. Worry about the credit score (as grants do not affect it)

Keep in mind that you have to spend the received funds in the way the grant provider outlines unless you want to face penalties.

Types of Small Business Grants

The following table outlines different types of small business grants you can apply for:

Government Small Business Grants Private Small Business Grants
To get government-funded grants, you could browse for:

  • State grants
  • Regional grants
  • Federal grants

You should set your search based on the:

  • State, municipality, or city your business is registered in
  • Industry that your company is in
These grants can be:

  • Corporation grants—This type of funding often has:
    • Less demanding application requirements
    • More competition
  • Foundation grants—You can apply for a grant from a charitable foundation

Government Loans and Grants for a Small Business

Government agencies are among the biggest business grant providers that:

  • Offer a good opportunity to grow your business
  • Support enterprises from different industries and sectors
  • Offer grants at the federal, state, and regional level

Federal Grants for Small Businesses

Here is an overview of several sources you can use to look for available grants on the federal level:

  • Grants.gov—This website offers information about various grants offered by different government agencies. To look for grant opportunities, you should:
    1. Open the Search Grants page
    2. Check the Small businesses box in the Eligibility section
    3. Register an account to access all eligibility criteria for the grant you are interested in
  • Small Business Innovation Research Program (SBIR)—SBIR is a grant program you could join if you want to participate in research and development activities. Some eligibility requirements include:
    1. Operating a for-profit business
    2. Having less than 500 employees
    3. Focusing on high-tech innovation
  • Challenge.gov—This website offers a list of different competitions whose main aim is to drive innovation. If you decide to participate in a contest, you will need to register for an account first

Regional and State Small Business Grants

If federal grants seem too competitive for you, you could browse through available state or municipal opportunities, such as:

  • Economic Development Administration (EDA)—This U.S. Department of Commerce agency provides grant opportunities to boost innovation and entrepreneurship. If you have any questions, you could get in touch with the regional EDA office that has jurisdiction over your state
  • Small Business Development Centers (SBDC)—You can find assistance with networking opportunities, financing, and other business matters through your local SBDC

Corporate Grants for Small Businesses

Some foundations, private corporations, and large companies offer small business grants to nonprofit and for-profit businesses and industries. The following table lists some of these grant providers:

Grant Provider Details
FedEx FedEx Small Business Grant Contest offers funds for business services with a maximum prize of $50,000. To qualify for this program, your company must:

  • Be a for-profit business
  • Not have more than 100 employees
  • Be in operation for a minimum of six months
National Association for the Self-Employed (NASE) If you are a member of NASE, you can apply for:

  • A Growth Grants program for small businesses
  • An award of up to $4,000 every month
Visa The Visa Everywhere Initiative is a program that provides grants for startups that provide solutions:

  • To payment challenges
  • For Visa’s clients and partners

How To Apply for Grants and Loans for a Small Business

Getting free money is not an easy task and often involves:

  • A complex and time-consuming application process
  • Strong competition

To ensure your grant application stands out from the others, you should:

  1. Fulfill all requirements—If you do not meet eligibility criteria or do not have a good credit score, you should not try to conceal the truth since you will only be wasting your energy and time. In case you are not sure about certain terms, you should contact the grant provider to confirm everything before starting
  2. Draft the application carefully—To ensure you have filled out your grant application with complete and correct details, you need to follow the given instructions closely
  3. Prepare a solid business plan—As you are required to provide a business plan, you should present why your business will be successful and how:
    1. The grant funds will improve your operations
    2. You plan to fulfill the grant’s objectives

Ensure You Get a Small Business Loan

Aside from grants, you could also apply for small business loans to start a business or improve your operations.

If you are not sure how these loans work, you should browse through DoNotPay’s website as we offer articles on:

You can also use DoNotPay to find the most suitable online lender and draft a convincing business loan request letter.

Prepare an Effective Business Loan Request Letter With DoNotPay

Our AI-powered app knows what information to include in a loan request letter to ensure your loan approval chances are high.

To get the assistance of our robot lawyer, you should first:

  1. Collect your personal and business credit scores
  2. Prepare any business financial statements, including the:
    1. Profit and loss statement
    2. Cash-flow statement
    3. Balance statement

Once you have gathered the necessary documentation, sign up for DoNotPay and take these steps:

  1. Navigate to the Business Loan Request Letter product
  2. Provide information about your company
  3. Let us know how much you are asking to borrow
  4. Upload the collected documents

If you are not sure where to look for potential lenders, you can use our integrated Find Online Business Loan Lender feature.

DoNotPay Offers More Help for Your Business

Running a small business is no small feat. When you’re drowning in red tape, DoNotPay is here to lend a helping hand. Whether you need to register your trademark or protect it later on, we have got it covered. With our help, you will keep your logo, slogan, and business name safe.

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In case you are struggling financially, we can assist you with a business loan application.

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