Small business is the backbone of the American economy and if you’re thinking about starting or expanding a small business, you might want to really look into small business grants. Just imagine if grants for small business were available back in the days when Bill Gates was working in his garage on the very first computer! Better yet, imagine yourself in his position 30 years ago.
SBA Grants to Start a Small Business
With very few exceptions, all federal agencies which award grants, many state and local governments as well as private foundations use the size standards established by the Small Business Administration to define a small business. Those standards include:
- 500 or less employees for most manufacturing and mining industries ;
- 100 employees or less for all wholesale trade industries;
- $6 million max profit for most retail and service industries;
- $28.5 million profit cap for most general & heavy construction industries;
- $12 million profit cap for all special trade contractors;
- $0.75 million profit cap for most agricultural industries.
While the SBA does not make direct loans or grants to start small businesses, the SBA does indeed set the guidelines for loans which are then made by its partners, or lenders, community development organizations and micro-lending institutions. The SBA in turn guarantees that these instruments will be repaid, which eliminates much of the risk to the lending partners. When a small business applies for an SBA loan, it is actually applying for a commercial loan which is structured according to SBA requirements with an SBA guaranty. SBA-guaranteed loans may not be made to a small business if the borrower has access to other financing on reasonable terms.
Grants to Expand Small Business
There are many private funding options when seeking grants to expand small business. One such grant is the peaChick Grant. The peaChic Grant is exactly that: a grant to expand small business offered to women-owned and focused businesses which never require repayment. The purpose of the peaChic Grant is to provide a funding source to women wanting to launch or expand their respective businesses. The peaChic Grants are typically small, usually ranging from $500 to $1,000, and are intended for expenses which might include establishing an Internet website presence. This can also include procuring supplies and necessary equipment with which to conduct business; marketing expenses and other areas of business where lack of funding could result in inability to launch effectively.
Grants for Small Business
You’re asking yourself, are there really grants for small business? The answer is a very simple yes, there are. Most grants for small business are geared to help identified minorities and are designed to help close the gap between the way things really are in this world, and how things really should be. If you open your mind and look hard, you may very well you qualify for one or more available grants for small business.
Small business is the backbone of the American economy and if you’re thinking about starting or expanding a small business, you might want to really look into small business grants.