You’ve heard of the Federal Recovery and Reinvestment Act initiate, but not a lot of people know that a great portion of that funding comes in the form of commercial grants. Government commercial grants come in two forms: funds awarded directly by the U.S. government and tax credits. Commercial property grants which are accessible to everyone can be used for buying and selling everything from farmland to office buildings. Commercial business grants can be either private foundation awards or government awarded commercial business grants.
Government commercial grants; the most awarded and popular by far, are awarded to cities, states and qualified select business entities routed via nonprofits around the nation. Government commercial grants are generally managed by the U.S. Small Business Administration. Some government business commercial grants are available through state and local programs, non-profit organizations and other groups. Some states provide government commercial grants for expanding childcare and welfare centers, programs fostering energy efficient technology and developing marketing campaigns for local or regional state tourism. These grants are not free money as you may have wrongfully heard, and usually require the recipient to match funds or combine the grant with other forms of financing such as a loan. The amount of the grant money available varies with each business and each grantor.
Commercial property grants come in many forms. Small Business Improvement Fund awards commercial property grants to help business owners make improvements to select business properties in neighborhoods which would benefit from revitalization. SBIF grants are awarded in the form of commercial grants to property owners all remodeling work is done and the expenses are paid and then reimbursed via the awarding agency. Residential property, residential components of mixed-use buildings, and property leased to fast-food chains and certain other businesses are not eligible for the program. Vacant business property is eligible, but again, grants are not paid until the space is occupied by the business operator.
Commercial Grant Alternatives
Other eligible commercial property grant recipients are industrial applicants with a minimum of 100 employees, landlords with a maximum net worth of six million dollars and tenant applicants with a leasehold interest.
Commercial business grants are awarded to profit-making or profit-fostering entities, and allow businesses and other entities the opportunity to grow and prosper as times and needs change. Administered by the SBA at the state level; and it’s worth remembering that while the SBA will not award commercial business grants to start a business, they can indeed help an already established business grow. State and local government commercial grant opportunities may exist for small to medium businesses engaged in extremely specialized activities and offerings. Many states provide job training commercial business grants to new and expanding firms. Other states provide commercial grants to fund scientific research projects, and for agricultural development.
Whether you need to expand your business offerings, buy or rehabilitate existing property or engage in specialized training programs, commercial grants should be considered a viable tool in your financial world.