Where to Get Free Money for Small Businesses
As the pandemic starts to become part of history, more businesses start to open up but it might take some time to fully recover. While you are still trying to get back on your feet, here are a few places you can look into to get your small business funded.
The PPP officially ended last May 2021, but for small businesses, there are other pandemic-related grants available to them.
The SBA provides Targeted Economic Injury Disaster Loan Advance for small businesses in low-income communities that have experienced more than 30% decrease in revenue during an eight-week period beginning on March 2, 2020, or later. You will have to provide a gross monthly revenue to confirm the decrease. You also need to have 300 or fewer employees.
The loan is actually like a grant that does not need to be repaid. The Targeted EIDL could go up to $10,000 and the SBA will identify eligible businesses from those that applied for an EIDL. The Economic Injury Disaster Loan applications will be accepted until December 31, 2021, but the SBA will continue processing applications after the deadline.
There is also a Supplemental EIDL which provides an additional $5,000, even when you already received a previous EIDL. This also does not need to be repaid. To qualify, you need to be in a low-income community, experienced a 50% decrease in revenue, and have 10 or fewer employees.
In federal grants, there are the Small Business Innovation Research and Small Business Technology Transfer programs. The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs are highly competitive programs that encourage domestic small businesses to engage in Federal Research/Research and Development (R/R&D) with the potential for commercialization. These are grant programs that focus on research and development for technology innovation and scientific research.
By providing an award-based program, the government encourages small businesses to explore their technological potential.
To qualify for this grant your employees should not be more than 500.
State and regional grants
The Economic Development Administration is an agency that provides grants to communities to support growth. EDA believes that economic development should be led by local development. It works with communities to grow economically based on the conditions and needs of the local businesses. EDA’s grant is designed to leverage existing regional assets. EDA can help with financing and even recruit employees.
You can make use of the EDA directory to find regional offices near you.
Another resource could be your local Small Business Development Centers. The SBDC is in partnership with the SBA and local universities. They provide support for small businesses by connecting business owners with financing opportunities and providing educational resources to those who want to start their own businesses.
These are just some resources you can look into if you are looking for funding. If you are not sure about your position on getting government subsidy, you can approach us with any question about financing and we can help you reach a decision suitable for your financial status.