Foundations & Grants to Start a Small Business

The notion that there are foundations and grants to start small businesses has been around for years, yet much confusion surrounds the issue. So, are there foundations and grants that help start a small business? The answer is yes and no, because there is room for interpretation.

Is There Money?

In the strictest, most literal sense, the answer is there are officially no foundations and grants to start a small business. However, there are several programs that offer individuals and nonprofit institutions assistance in various areas.

The largest pools of money exist in fields with innovation and public service. Financial and skill-building program resources are available for women, minorities and verified nonprofit institutions too. The resources acquired from these programs can be useful in creating a new business.

Funding for Innovators

If your business is genuinely innovative, uses cutting edge research or has the potential to significantly improve society, you might receive funding from one of the institutions that offer assistance for these types of enterprises. Usually you must use the money to further specific fields. The Ford Foundation offers funding for businesses that will improve the field of philanthropy. Similar programs are in place at a number of federal institutions, including the Department of Agriculture, The Department of Education and the National Science Foundation.

Funding for Women and Minorities

If you are a woman or qualify for minority status there are programs that help you gain skills that can be used towards your business goals. A good place to search is the Federal Catalog of Domestic Assistance. It lists hundreds of funding organizations broken down by qualifications. The Foundation Center is another popular destination for funding. Their huge library of foundations and grant makers, along with regularly scheduled trainings and workshops, can provide invaluable insight. There are several locations in cities throughout the country, as well as a well-stocked website.

Nonprofit Funding

Another option is establishing your business as a nonprofit organization. Nonprofit enterprises usually provide services and assistance or fill a demonstrated public need. Most fall into the fields of health, education, social services, and arts and culture. To research foundation and grant money for these groups, the Foundation Center is a good place to begin. Grants.gov is website that allows you to search for government-related funding, while Guidestar is a useful organization that allows you to research and connect more directly with potential financial resources.

Be Focused

It is crucial to understand that, in addition to the various limits and stipulations in place, the funding process is highly competitive. You must have a well developed business plan, understand what makes your business stand out and understand the ways in which your work can help the broader community. Once this is done, then roll up your sleeves and start applying!

References

• The Ford Foundation
• The Foundation Center
• Guidestar