Small Business Grants to Help Your Small Business Thrive in the Late Stages of the Pandemic
Small business grants offer free capital to start or grow a business, and when a global pandemic hits, the need for such grants only increases. Read on if you’re looking for grants to help you pull through the late stages of the COVID-19 pandemic and its aftermath.
Types of Small Business Grants
There are various types of grants, your eligibility of which depends on your business’s products and services, ownership, and mission. The main business grant options are broken into the following sections:
- Federal Grants: These grants are given from the United States government’s general federal revenue in order to help stimulate the economy and help businesses in need. They are often given to non-commercial organizations, like tech, health, science, or education companies.
- State Grants: These small business grants are offered by a specific state. Because their requirements are state-specific, the competition is often slimmer. The amounts are sometimes smaller than federal grants, but they can still provide a welcome financial boost.
- Local Grants: These grants focus on small businesses that directly stimulate their local communities.
- Corporate Grants: These grants are gifted by select corporations. In many instances, companies will set aside funds at the beginning of the fiscal year and run competitions to determine recipients. Corporate grants have various requirements and varying amounts.
Stimulus Grants for Small Businesses
Specific grants have been created expressly to alleviate the pandemic-inflicted pain for small businesses. It’s important to note that many of these programs close for applications at some point, and some of them open additional rounds of funding, so check with each to confirm the latest.
Targeted Economic Injury Disaster Loan Advance Grant
Some small business owners applying for an Economic Injury Disaster Loan (EIDL) through the Small Business Administration (SBA) are eligible for an emergency cash advance of up to $10,000. This advance can be forgiven by the SBA (effectually made into a grant) if it is spent on maintaining payroll, paid leave, increased costs, mortgage or lease payments, or other financial obligations.
You may qualify for a targeted EIDL Advance if your business:
- Is located in a low-income community
- Has suffered an economic loss greater than 30% during an eight-week period since March 2, 2020
- Employs 300 or fewer employees
Additionally, your business must have previously received an EIDL Advance for less than $10,000 to be eligible, or previously applied for an EIDL Advance program but never received assistance due to a lack of program funding.
The SBA will reach out to qualifying businesses for a Targeted EIDL grant, so no action is necessary on your part. All legit emails regarding SBA grants will arrive from an address ending in @sba.gov.
Shuttered Venue Operators Grant
The Shuttered Venue Operators Grant (SVOG) was introduced by the SBA as part of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act. It has since closed, but the SBA intends to open the program for supplemental SVOGs for 50% of the original award amount, capped at a total of $10 million. It has not yet released details.
Eligible businesses include:
- Live venue operators or promoters
- Theatrical producers
- Live performing arts organization operators
- Relevant museum operators, zoos and aquariums who meet specific criteria
- Motion picture theater operators
- Talent representatives
Additional SBA Grants
- SBA Small Business Innovation Research and Small Business Technology Transfer Programs
- SBA 7(j) Management and Technical Assistance program
- SBA State Trade Expansion Program ($50,000 to $2,000,000)
State-Based COVID-19 Relief Grants
Many local COVID-19 grants and relief funds were created in 2020 to help businesses struggling due to the pandemic. Some of them have exhausted their funding and are no longer issuing grants.
However, some states and cities have continued to offer relief this year. State departments of commerce websites and local chambers of commerce should have up-to-date opportunities for grants and information.
Corporate Small Business Grants
Big corporations often provide grants to small businesses through contests. Here are a few to keep on your radar.
- Intuit National Association for the Self-Employed (NASE) Grant: Typically given out annually, the tax preparation software company gifts small businesses a $4,000 grant in partnership with NASE.
- FedEx Small Business Grant: FedEx hosts an annual grant contest for small businesses, awarding a total of $230,000 to 12 small businesses nationwide. Find more details, including tips and warnings from past winners, on the FedEx site.
- Visa Everywhere Initiative: This grant offers funding for small business startups with innovative fixes. Visa annually awards $50,000 to the final three winners.
- Wells Fargo Community Investment: This program focuses primarily on nonprofits, but small businesses with the right criteria are also eligible to receive these business grants, which are offered in nearly every state.
- Kuvio Creative Impact Grant: Focusing on entrepreneurs who are making a difference, this full-service web design and development company provides qualifying small businesses with grants and free services. Applications open three times per year, and funds are reserved for nonprofits, women-owned companies, minority-owned businesses, and veteran-owned organizations. Grant recipients receive up to 100 hours of free services, the specifics of which depend on the scope of the project.