3 Little-Known Grants and Loans for Small Businesses

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In the vast ocean of funding opportunities, small businesses might find themselves adrift. However, some specific grants and loans cater to various niches and needs, often overlooked but potentially game-changing for the right business. Here, we explore three categories of such financial aids, providing examples and guidance on how to identify the best fit for your business.

1. Federal innovation grants for technology and research

For small businesses pioneering in technology, science, and research, federal grants are designed to support high-risk projects with high-impact potential. These grants support ventures that may be too nascent or speculative for traditional investment avenues. Here are a few examples:

• Blueprint Medtech Small Business Translator Grant : This grant supports small businesses creating medical devices to treat nervous system disorders, covering activities from prototype development to FDA approval processes.
• National Institute of Health Grants : Tailored for small businesses involved in biomedical technology, especially those addressing challenges like COVID-19.
• Small Business Innovation Research Program (SBIR) & Small Business Technology Transfer Program (STTR) : These programs encourage small businesses to engage in federal research/R&D with the potential for commercialization. STTR sets itself apart by requiring small businesses to collaborate with research institutions.

To find the right federal innovation grant, start at Grants.gov, which provides a comprehensive database of available funds. It's crucial to match your project's focus with the grant's objectives and ensure your application details how the project aligns with the federal goals.

2. Microloans and grants for minority and underrepresented entrepreneurs

Microloans and grants tailored for minority and underrepresented entrepreneurs aim to level the playing field by providing necessary financial assistance and support to those who may face barriers entering the mainstream economic landscape. These funding opportunities are crucial for promoting diversity and inclusivity within the small business community. Here are some examples:

• Amber Grant Foundation : Established by WomensNet in 1998, this foundation offers grants to women entrepreneurs. It includes monthly grants of $10,000, two annual grants of $25,000, quarterly startup grants of $10,000, and quarterly nonprofit grants of $10,000. Plus, there are 12 Business Category Grants of $10,000 each month, providing a wide range of opportunities for women in various industries.
• Accion Opportunity Fund : This fund provides loans and resources to underserved entrepreneurs, including minorities, women, and those from low-income communities. The fund focuses on microloans that can help purchase inventory, fund operational expenses, or expand the business.
• Kiva U.S. : Kiva offers crowdfunded microloans to entrepreneurs who lack access to traditional banking systems. Loans on Kiva have zero interest, which is a significant advantage for startups and small businesses trying to minimize costs.

Entrepreneurs seeking microloans should connect with local nonprofit lenders and community development financial institutions (CDFIs) that administer these programs. These organizations often provide additional business development services, helping borrowers grow and manage their businesses effectively.

3. Specialized local grants for targeted community needs

Local grants often address specific community needs and priorities, such as improving accessibility, supporting local economic development, or enhancing sustainability. These grants can be particularly accessible for small businesses committed to community involvement. Here are a few examples:

• San Francisco Accessibility Grant : This grant offers financial assistance for businesses to improve facility accessibility and meet ADA compliance needs.
• Texas Enterprise Fund (TEF) : Aims to attract new business projects to Texas, offering grants based on job creation and capital investment that benefit the state's economic landscape.

Small business owners should start by checking with their local chamber of commerce, city or county government, and economic development corporations to explore localized grant opportunities. These entities often have information on grants tailored to specific local challenges or objectives.

When searching for the right grants or SBA loans , it's essential to understand the specific requirements and objectives of each funding source. Tailor your application to highlight how your business aligns with these goals.

Keep an eye on the deadlines and prepare your applications well in advance. By carefully selecting and applying for these funding opportunities, small businesses can secure the crucial support needed to propel their growth and achieve their strategic objectives.

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