Curious About Free Financial Aid? 6 Loans, Grants for Small Businesses!

The government has a broad range of grants available for small businesses, each catering to different qualifying criteria. Similarly, numerous corporations and non-profit organizations provide extensive financial assistance, particularly for those needing pandemic recovery support. Business owners from minority communities often find themselves with an advantage when applying for grants or low-interest loans, as many of these programs are designed to support BIPOC, Latinx, LGBTQ2+, and Native American entrepreneurs.

Great news awaits small business owners and budding entrepreneurs looking to expand their ventures. At present, there are several affordable or even free loans, grants, and government aid programs up for grabs. These resources can help boost your business's finances. To start, search online for federal stimulus programs or government grants.

Even if you are not planning to grow your business right now, some programs are aimed at covering financial losses incurred during the pandemic. Applying for these programs is a smart move since they typically don't need to be repaid. Although the funds might come with certain usage conditions, it's generally a good idea to take advantage of available free money. An online search will help you identify loan or grant programs that your small business might be eligible for.

Federal Stimulus Aid

Chances are you've already benefited from this one. Back in March 2021, President Biden approved a significant $1.9 trillion Covid-19 relief bill. This legislation provided direct payments of up to $1,400 per person and extended weekly unemployment benefits by $300. It also supported vaccine distribution efforts across the U.S. and included funds for rental and utility assistance.

While the Federal Stimulus package wasn't exclusively for small businesses, there were no stipulations on how the money could be used. You were free to invest it in your business if you chose to do so.

If you missed out on these payments in 2021, it's worth checking your IRS.gov account to understand why. You might still be eligible to claim the funds.

Government Grants

Numerous government grants are available, catering to various groups within the population. For instance, if you have a history of incarceration, identify as a woman of color, reside in an urban area, or belong to another minority group, there might be specific opportunities for you. Some of these grants aim to support small businesses, while others are focused on educational advancement.

Typically, these grants do not require repayment. The government views them as investments in individuals, with the hope that your business will thrive and contribute to the local economy. To find grants that match your specific circumstances or industry, start by researching online for opportunities in your state. Additionally, Grants.gov is a valuable resource for discovering and applying for relevant grants.

Government Contract Assistance

Each year, the federal government allocates billions of dollars, much of which is directed toward procuring goods and services from third-party vendors. This includes large-scale projects like constructing federal buildings and smaller tasks such as organizing political events and conventions. Although small businesses can compete for these contracts, they often find themselves at a disadvantage compared to larger, more established firms.

Fortunately, there are programs designed to level the playing field. For instance, the government sets aside 3% of all contracting opportunities for businesses owned by service-disabled veterans. Similar initiatives are available for businesses owned by women and those run by individuals from socially or economically disadvantaged backgrounds. These programs help ensure that smaller businesses have a fair chance to compete for federal contracts.

Natural Resource Sales Assistance Program

For businesses engaged in the natural resource industry, federal funding is available through the Small Business Administration's Natural Resource Sales Assistance Program. This initiative covers five main categories:

• Timber and other forest products

• Strategic materials

• Royalty oil

• Leases for minerals, coal, oil, and gas

• Surplus real and personal property

Under this program, small businesses are given priority in bidding on government sales and leases. They can access set-asides before these opportunities are opened up to larger firms, ensuring they get a fair shot at securing contracts and leases related to natural resources.

General Small Business Grants

Grants aren't solely provided by the government. Numerous non-profit organizations and private companies also offer funding to small businesses that meet specific qualifications. For example, the Business Warrior Small Business Loans program provides financial assistance between $5,000 and $50,000, with low interest rates, for businesses that might have trouble obtaining loans from conventional banks.

Other noteworthy opportunities include:

• Dream Big Awards

• GoFundMe Small Business Relief

• Walmart Local Community Grants

• National ACE's Small Business Digital Ready Program

These grants and awards vary, with amounts ranging from $250 to $25,000. To apply, you typically need to complete a few requirements, such as filling out an application or completing an online course.

Grants for Industry-Specific and Diverse Small Businesses

Certain grants are designed to support businesses in specific industries or those owned by underrepresented groups. For instance, if you run an online craft shop on Etsy that has faced challenges due to the pandemic, you might qualify for the Etsy Emergency Relief Fund. This fund, created by CERF+, a non-profit dedicated to supporting artists, can offer vital assistance.

Another notable program is Amazon's Black Business Accelerator. This initiative is designed to support Black entrepreneurs who sell on Amazon. It provides a range of benefits, including financial aid, grants, mentorship, advertising credits, and promotional assistance.

In addition, several non-profit organizations offer grants specifically aimed at:

• Women-led businesses

• Entrepreneurs from diverse racial backgrounds

• LGBTQ2+ business owners

• Restaurant proprietors

• Commercial truck drivers

• Jewelry makers

Whether you run a specific type of business or belong to a particular demographic, it's beneficial to search online for grants and low-cost loans that could take your business to the next level.