Does the Government Give Grants to New Small Businesses?
Getting grant funding for a new small business challenges owners because many grantors prefer organizations with an established record of accomplishment. Although the government does not offer grants to start a new small business, grants from the government may be obtained for research, products and services. The government grant award process involves competition with other businesses, and your product or services must meet a need appropriate to the funding agency. To find potential government grants, you need to research opportunities and comply with application requirements.
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Federal Grants for Small Business
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According to the official government business web site, the federal government does not have programs that offer grant opportunities specifically to start or expand small businesses. However, new small businesses may bid on government contracts to provide products and services or apply for general grant opportunities available to all businesses. The federal government posts information at the government grants site and business opportunities sites (see Resources). After searching by keywords or solicitation numbers, you can review each solicitation's eligibility requirements to find out whether small businesses may apply.
Federal Grants for Research
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The federal government offers several annual grant opportunities for small businesses in transitioning application-based research into products needed by government agencies, such as the Department of Defense. The Small Business Innovative Research and Small Business Technology Transfer Programs grant process begins by reviewing the needs of each agency, as described in the solicitation. When your businesses products and capabilities match the agency's needs, you may submit a proposal within the solicitation period that complies with grant proposal guidelines and content requirements.
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State Small Business Grants
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Similar to the federal government, states rarely have grant programs to start a new small business. However, most states within their economic development projects, offer facilitated opportunities to receive grants or low-interest loans. Completing the checklist for your state on the government business site generates suggestions and contact information for state-based grant and loan resources. Your state may maintain an Office of Economic Development or a technology transfer program through the state government. If so, contacting it about grant opportunities may lead to potential grantors.
Partnering
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A new company may choose to pursue a grant that helps get the small business funded by collaborating with an established business. By reviewing government solicitations and attending pre-solicitation meetings, you can introduce your business and capabilities to companies bidding on the grant. As a teammate on a winning proposal, your business receives a portion of the grant for services agreed to in advance with the primary contractor.
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References
Resources
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