Every Way to Get Small Business Grants in 2022! [Local, State, and Federal Grants]
TLDRIn this informative video, CPA Sherman shares valuable insights on securing grant funding for small businesses. He explains the importance of grants as non-repayable financial assistance, often provided by governments and non-profit organizations. Sherman outlines a strategic approach, starting with local city or county government grants, which are less competitive and more focused on supporting local businesses. He emphasizes the utility of Small Business Development Centers (SBDCs), economic development authorities, and the direct involvement of elected officials in identifying and securing grant opportunities. Sherman also highlights the significance of state and federal grants, particularly in the wake of the COVID recession, and provides a step-by-step guide to navigating the Small Business Administration (SBA) website for federal grant opportunities. He concludes with crucial tips for increasing the chances of grant success, including having an incorporated business entity, up-to-date tax returns, accurate business records, a separate business bank account, and a clear plan for grant utilization. The video is a must-watch for small business owners seeking to leverage grants for business growth.
Takeaways
- 💰 Grants are sums of money given for specific purposes, typically by governments or organizations, and do not need to be repaid if used for the intended purpose.
- 🏢 Start looking for grants at the local level, such as city or county government, as they are often less competitive and more focused on helping small businesses.
- 📍 Contact your local Small Business Development Centers (SBDCs) and Economic Development Authority for potential grant opportunities.
- 📞 Don't hesitate to call your elected officials; they can provide information on available grants and may even offer a letter of recommendation.
- 🏛 State grants can be competitive but are worth applying for, as they represent free money that could benefit your business.
- 🌐 For federal grants, start at sba.gov, which lists popular federal grants and programs like the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL).
- ✅ Before applying for grants, ensure your business is incorporated, has a unique Employer Federal Identification Number, and that your business and personal taxes are up to date.
- 📚 Keep your business books up to date, as financial records may be required when applying for certain grants.
- 💼 Operate from a separate business bank account to facilitate easier bookkeeping and to demonstrate appropriate use of grant funds, if awarded.
- 📈 Have a clear plan for how you will use the grant funds, including financial forecasting to show the potential impact on your business and customers.
- 🔄 Remember that grants are meant for specific purposes, so ensure that your application aligns with the grant's objectives and that you can demonstrate a need for the funds.
Q & A
What is the primary purpose of a grant?
-A grant is a sum of money given for a particular purpose, most commonly provided by governments or sometimes other organizations such as non-profits.
How does a grant differ from a loan?
-A grant does not have to be paid back, whereas a loan does. However, if a grant is not used for the specified purpose, it may be required to pay back the full amount and possibly face additional consequences.
Why should one consider applying for grants even if they are not currently in financial distress?
-Applying for grants can provide a competitive edge over competitors who may be utilizing these opportunities, ensuring that one does not get left behind.
What are the most effective ways to find grants for a small business?
-The most effective ways to find grants are to start at the local level with city or county government, then move up to state and federal government grants.
What is the role of a Small Business Development Center (SBDC)?
-SBDCs are organizations funded directly by the government to support small businesses, often providing financial programs and assistance.
How can local economic development authorities help small businesses?
-Local economic development authorities aim to create better opportunities for people in their communities, often by providing grants, loans, tax credits, and other incentives to attract businesses and spur economic growth.
Why is it beneficial to contact elected officials when searching for grants?
-Elected officials can provide information about available grants in the area, direct you to the right resources, and sometimes even offer a letter of recommendation to help obtain specific grants.
What is the significance of having an Employer Federal Identification Number for applying for grants?
-Having a unique Employer Federal Identification Number shows that you own a legitimate business, which is often a requirement for grant applications.
Why should a business have its financial records up to date when applying for grants?
-Grant providers want to ensure that the business has an actual need for the funds being requested, and up-to-date financial records provide a clear picture of the business's current financial standing.
How can operating in a separate business bank account facilitate the grant application process?
-Using a separate business bank account simplifies the bookkeeping process and makes it easier for grant providers to audit and ensure that funds are used appropriately.
What is the importance of having a plan for the use of grant funds before applying?
-Grant providers want to know how the funds will be used to ensure they align with the purpose of the grant. Having a clear plan can increase the chances of being awarded the grant and demonstrate the potential impact of the funding.
Outlines
💼 Introduction to Small Business Grants
The video begins with the speaker, Sherman, a CPA and small business owner, emphasizing the importance of grants for businesses. He mentions that whether you're in need of funds or looking to stay competitive, grants are a valuable resource. Sherman offers to provide all the necessary information to find and apply for grants, saving viewers the trouble of searching elsewhere. He clarifies what a grant is, highlighting the key difference between a grant and a loan, and stresses the importance of applying for grants that align with your business needs.
🏛️ Finding Local Government Grants
The speaker outlines the most effective ways to secure grant funding, starting with local city or county government grants, which are typically less competitive and more focused on supporting small businesses. He suggests looking for grants at the local Small Business Development Center (SBDC) and the local Economic Development Authority. Sherman also recommends contacting elected officials directly for grant options, noting that these officials are there to serve the community and can provide valuable information on available grants and incentives.
🌟 State and Federal Government Grants
Sherman moves on to discuss state and federal grants, noting that while they are generally more competitive, they are worth pursuing due to the potential benefits. He provides a method to find state grants by searching for the state's economic development authority and encourages viewers to call these authorities for detailed information. For federal grants, Sherman recommends starting at sba.gov, the Small Business Administration's website, which lists popular federal grants like the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL). He also clarifies that while these are technically loans, they can function like grants if used for specific expenses.
📝 Tips for Successful Grant Applications
The video concludes with Sherman's top tips for increasing the chances of securing grant funding. He advises that businesses should be incorporated with a unique Employer Identification Number (EIN), have up-to-date business and personal taxes, and maintain current business books. Sherman also emphasizes the importance of operating from a separate business bank account and having a clear plan for how the grant funds will be used. He suggests forecasting financials to demonstrate the impact of the grant on the business. Sherman offers assistance for any business-related queries and summarizes the key points discussed in the video.
Mindmap
Keywords
💡Grant
💡Small Business Development Center (SBDC)
💡Economic Development Authority
💡Elected Officials
💡Federal Grants
💡State Grants
💡Incorporated Entity
💡Employer Federal Identification Number (FEIN)
💡Business Plan
💡Financial Projections
💡Tax Credits
Highlights
Grants are a valuable source of free money for businesses, which can be advantageous even for those not currently in financial distress.
Grants differ from loans in that they do not need to be repaid, but must be used for the specified purpose.
Local city or county government grants are often less competitive and more focused on serving small businesses in their areas.
Local Small Business Development Centers (SBDCs) and the Small Business Administration (SBA) are key resources for finding financial assistance.
Economic Development Authorities at the city or county level can provide grants, loans, and tax credits to attract businesses and stimulate job creation.
Calling elected officials directly can be an effective strategy to uncover grant opportunities and even secure letters of recommendation.
State grants, while more competitive, are worth pursuing due to the potential for significant funding.
The SBA is the primary federal agency for small business grants, including popular programs like the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL).
PPP loans can be forgiven if used for specific expenses, effectively functioning like a grant.
Before applying for grants, businesses should be incorporated, have an EIN, and up-to-date tax returns.
Businesses should operate from a separate bank account to facilitate proper use of grant funds and ease of auditing.
A clear plan for the use of grant funds is crucial, including financial forecasting to demonstrate the impact of the grant.
The presenter, Sherman, offers assistance with business setup, tax filing, bookkeeping, and financial projections for those needing help.
A summary of the video provides a clear roadmap for businesses to follow in their quest for grant funding.
Engagement with the video, such as liking and subscribing, is encouraged for more content on business growth.
The video emphasizes the importance of proactively seeking and applying for grants to stay competitive in the market.
The presenter shares personal experience with utilizing local economic authority incentives, such as tax credits, to save on business taxes.
Transcripts
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