5 Grants to Start a Small Business (for Startups)

why did the jenny start a new business  well because he was used to granting wishes   okay let's go ahead and talk about how to get a  grant to start a business listen if someone comes   up to you and they say hey i got some free money  for you it's probably a scam unless it's a small   business grant because grants are literally  free money that business owners can use during   their startup phase of their company during the  growth expansion phase of their company or even   for additional research and development but i want  to be upfront with you because getting a startup   grant can come with a few cons such as number  one it takes time to find a grant that you can   qualify for and actually give you the capital  that you need number two it also takes time   for you to actually sit down and apply and then  wait for correspondence from the grant officers   and number three sometimes there are limitations  with how you can use the grant money like for   example with the ppp loan or the ppp grant you  could only use that money on staff rent bills etc   so you should be aware of some of these cons up  front that being said i have compiled a small list   of startup grants and credits that you can  use to start your small business stay tuned hey there and welcome to our channel i'm sean  with life accounting the accounting company   that saves people from high taxes and low profits  the goal today is to help you get your business   up and running with grants to start a small  business now most people know what grants are   especially if you're subscribed to our channel but  for the small percentage of people who don't let   me quickly explain number one what is a grant  and where do they come from okay so a grant is   basically money that is given to a business  from a federal state or local government you   can also get a grant from private businesses or  corporations who want to support their respective   communities now the great thing about grants is  that they do not require any repayment whatsoever   which is ideal for any entrepreneur that has  little cash available for their startup but   why in the world would these governments and  corporations give away this free grant money   well typically a grant becomes available because  a government agency or a non-profit organization   or a private corporation wants to address an  area of concern which could be beneficial for   them or come back to haunt them in the long term  for example you'll see government agencies set   aside money to support minority entrepreneurship  in certain communities because well we fund the   government with our tax dollars and politicians  run on the promise to help communities do better   and they actually need to make good on those  promises or as another example you'll see   a corporation set aside grant money for research  and development that will be instrumental to their   industry and something that they can actually be  able to capitalize and leverage later on inside   of their corporation and has another bonus for  private businesses or corporations of course   would be the tax deductions as well so there you  have it that's what a grant is and that's where   the money comes from and there's a few reasons  why the corporations the nonprofits and the   governments willingly give it away now the second  thing that we need to talk about is number two   what types of startups normally qualify for  grants because listen not everyone can get a   startup grant in fact organizations that run grant  programs want to make sure they're giving money to   startups that actually deserve it and will put it  to good use and this is very important to remember   especially for later on when we talk about how to  actually get and receive a startup business grant   okay but for now you need to know there are  usually three groups of startups who typically   can get a grant the first group is a business that  belongs to a sort of niche industry and has proven   strong potential for growth for example if there  is an innovative startup that is building an app   or a service they could be awarded a technology  grant the second group will be a business that   has a positive impact on the world or within a  specific community so for a great example here   would be a company that creates a product that  will create sustainable energy or green energy   for the world or a company that has a service that  is built specifically to help minority children   succeed in education and the third group will  be any startup founder or founders who belong   to a marginalized group or have significant  economic disadvantage that makes it harder   for them to get ahead when it comes to business  for example that could be a disabled veteran   or a black woman owned business or a founder  that has been disproportionately affected by   a natural disaster just to name a few but  these grants are typically issued to help   level the playing field by giving people with an  economic disadvantage equal access to funding now   if your company does not fit into one of these  groups you can absolutely still get a grant   but you're gonna have to work a little bit harder  at finding the right one okay let's go to get into   some grants so the first grant i have on my list  grant number one is the small business innovation   research grant or the sbir grant this grant is  funded by the sba that gives startups up to 250   000 in phase one and if phase one goes really well  then after about six months recipients can get up   to one million dollars over two years during phase  two now the eligibility requirements are perfect   for startups okay you simply need to be number  one an organization for profit within the united   states number two the business should be owned  and controlled by a u.s citizen or a permanent   resident by more than 50 percent and lastly  number three have no more than 500 employees   including affiliates now while almost anyone can  apply you need to know that this grant is focused   on research and development within technology  innovation so this is one of those groups of   grants that is focused on a specific industry now  of course a major pro of this grant is that after   being awarded you can immediately get a contract  with a government agency which of course can   secure long-term revenue but as a con it is highly  highly competitive as well so you must be very   innovative if you want to check out this grant you  can apply at sbir.gov moving on to grant number   two but really quick before i go to grant number  two if you appreciate this video and this type of   content please do me a huge favor by hitting  the like button for the youtube algorithm it   really helps to spread this video around to more  people like you who want to learn about grants for   startups okay grant number two on my list is from  the u.s economic development administration or   eda for short this agency has many available  grants specifically to provide business owners   with free tools and funding and in my opinion they  have the best all-around program that provides   grants to start a small business because they  work with a variety of different people in a   variety of different industries for example right  now they have a grant that is specifically geared   for travel tourism and recreational startups  which is definitely difficult to find anywhere   else now because the eda has such a well-rounded  database of grants that means that the eligibility   requirements and the amounts differ from grant to  grant so you'll want to research before applying   of course now the pros of going after eda grants  are there are so many to choose from even at the   state level but the major con is that because  they cast such a wide net finding the right one   the right grant may be a little bit overwhelming  now if you want to check this out you can research   and start applying at eda.gov backslash funding  dash opportunities okay moving on to number   three which is kind of like a grant but it's  really a credit which is opportunity zones   now this is a tax credit that i actually have  received during the startup phase of one of my   businesses and it helped us out tremendously  because we were able to apply that credit to   parking and office expenses well basically  it's when you're operating a business in an   area that needs more economic activity and so  in our case our local government was willing to   give our company 3 500 for each job we created  within the opportunity zone and we went on to   create over 20 jobs in that area so it definitely  definitely was a sizeable credit and it helped us   a lot during our startup phase so if you do have  a startup check with your local government and see   if you can build a business in that opportunity  zone to help offset some of those startup   costs okay grant number four on my list is the  100 000 sud startup grant from the national   institute of drug abuse this is one of those  specific industry grants that applies to anyone   who wants to build a startup to help with  substance use abuse so this fits into the group   of grants that is specific to making a positive  impact on the world or within a specific community   for this grant there are 10 startups that are  selected and they each will get 10 000 to help   fund their startup and if you receive the sud  grant then you will be automatically enrolled   in other grant opportunities to help further  your startups development which is super awesome   as well now this is a very niche grant and i  just have this here to show you an example of   what a niche grant will look like but if you are  interested in this specific one then i'll put text   to where you can check it out below okay moving on  to grant number five on my list is the back black   businesses grant yes i'm gonna say it okay black  entrepreneurs matter okay this is one of those   group of grants that are specific to people who  have a significant economic disadvantage due to   their environment and because of that in order to  be eligible you need to be a black-owned business   you need to employ between three to 20 people you  need to be in an economically vulnerable community   and you must have been harmed in some way by  the pandemic and if you qualify and win that   you can be awarded between five thousand  twenty five thousand dollars but even more   importantly you will receive free mentorship  and business training from other experienced   black owned entrepreneurs and you can apply here  at webactblackbusinesses.com now listen there are   hundreds of other grants out there okay i just  went over five to show you some examples and get   you to start thinking about some startup grants  for your business but by no means is this even   close to being an exhaustive list so definitely  take your time and try to find more however on the   other hand if you're having an extremely hard time  finding a grant that suits your business needs   there are alternative sources of funding such  as getting a bank loan getting a line of credit   or finding a traditional investor now crystal  made a great video talking about small business   grants for women so definitely make sure you  check that out coming up next or you can check   out my other video on how to successfully win a  small business grant and we'll see you over there

Channel: LYFE Accounting

Views: 468,579

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Id: FweABu-XPNM

Length: 12min 32sec (752 seconds)

Published: Mon Oct 18 2021