Government business start up grants are an excellent way to get your new enterprise underway without incurring debt repayment costs. Grants like these are made available by state and local governments as well as federal agencies; private companies sometimes also provide grants. To learn more about this form of funding, refer to our article below.
Before applying for grants, it is wise to conduct some background research on each program you wish to apply for. Many grants have stringent eligibility criteria; if you fail to satisfy them all, your grant application could be denied. Some programs only award grants to minority-owned businesses with three or more years in operation or those focused on social change initiatives; other grants require specific types of businesses like food or healthcare businesses as recipients.
The National Institute of Health offers several grants for biomedical research projects conducted by small businesses. One such grant is the Blueprint Medtech Small Business Translator Grant, which offers up to $200,000 in funding and other resources for companies creating medical devices to treat nervous system disorders. As this is a cooperative grant administered jointly with each business owner involved, NIH will work alongside them in meeting all necessary requirements including clinical studies submission.
Economic Development Administration (EDA), provides funding for projects that enhance economic development in communities. For
more information, it is wise to reach out to your state agency and inquire as to their specific funding requirements and incentives programs in all states available to economists and community developers through EDA’s database of incentives programs.
If you decide to pursue grant application, be sure to devote ample time and attention to creating a thorough business plan and following all application instructions closely. Grant applications can be long and arduous processes – any errors could prove costly! For added guidance when approaching grant applications, reach out to former grantees as they could provide invaluable insight.
Businesses may also look to alternative sources for funding, including credit cards, personal savings accounts, bank loans, crowdfunding platforms or peer-to-peer lending platforms as viable funding alternatives to grants. Although such options tend to offer greater flexibility than grants when starting up businesses without incurring debt, if debt free startup is your priority it may be worthwhile considering grant options as one such source.