Apply for Business Grants: Ways to Get Free Money for Business
Updated: May 11, 2020 | Posted by: foodsupport.org | Related: Business Assistance
The federal government believes that in order to minimize the rapid increase of unemployment in the country is to create jobs and offers opportunities to start small businesses. These small businesses are considered non-employers or others may call it as self-employment. They are the individuals who prefer to operate a small venture in a sole proprietorship, partnership or incorporation. Nowadays, people have many opportunities through the help of the modern advancement to start a business even at your own home. Many Americans are becomes beneficiary for this endeavour and helps the communities to revitalize the economic prospect in their own locality.
Through these small businesses, it helps and ensures the public to produce jobs in different field. New jobs means good to the economy and to the low-income individuals who struggling to find a decent job for a quality living. For the past 18 years, while percentage of unemployment increase and some companies opt to reduce their manpower services, new companies or businesses are created and it need workers. Thus, small business embarks responsibilities in creating jobs for the economy.
You might think that in order to start your own business, it requires a high cost of capital, business course and overwhelming support. It is true that in order to start your small business you need some support for your capital but who will it be? You don’t need to have a graduate of a business course for you start your business maybe it could help though. You might consider the support from the government. But take note that federal government doesn’t just give easy money. However, there are plenty of sources that you might consider:
A. United States Department of Agriculture (USDA) Rural Energy for America Program Grants
If you are living in rural areas and currently have a small business then you might be eligible to the Department of Agriculture’s Rural Energy for America Program. This program helps to increase the energy independence among the Americans by allowing the private ventures to supply a renewable energy while ensuring the decrease on the demand for energy through the improve system of energy efficiency. Through this investment, it helps the small businesses and agricultural producers to get a lower cost of energy for their daily operation.
Who are qualified to apply?
Agricultural produces with at least 50% of gross income coming from their agricultural operations. Small businesses operated in eligible rural areas as specified by the USDA
How the grants be used?
Funds from the USDA Rural Energy for America Program can be used for any renewable energy systems that include:
Geothermal Energy system for Electric Generation or direct use.
Any types of Biomass like biodiesel and ethanol, anaerobic digesters, and solid fuels.
Hydropower below 30 megawatts
Small and large wind generation
Small and large solar generation
Ocean energy generation such as tidal, current and thermal.
How much fund is Available?
Qualified Applicants may get a loan guarantee up to 75% of the total approved project costs.
Grantee may receive up to 25% of total eligible project costs. For the Renewable Energy System grants, it has a minimum term of $2500 and a maximum of $500,000. While on the Energy Efficiency improvement grants may receive a minimum term of $1,500 and a maximum of $250,000. Combines grant and loan guarantee may be funded up to 75% of total eligible projects cost.
How to apply?
Eligible applicants are welcome to be accepted year round. You may contact the State Rural Development Energy Coordinator in your local Office. Or visit the USDA Rural Energy for America Program website at rd.usda.gov.
B. Small Business Administration (SBA)
The U.S. Small Business Administration which is an independent federal agency commits to help and protect the small businesses in the country. As mandated on the Small Business Act of 1958, it recognizes the vital role of the small businesses in the country’s economy. It helps the Americans to start and build their own businesses that guarantee to strengthen the economic opportunities through a broad partnership and linkages with other federal agencies and private institutions. The SBA provides four programmatic functions for assisting small businesses in the country:
• Business Financing
Through their program on the access to capital, the SBA offers small businesses to be financed for their smallest needs in microlending up to substantial debt and equity investment capital or venture capital.
• Entrepreneurial Development
With their experts and executive volunteers, the agency provides a free consultation and face-face or internet counselling for those small business owners, emerging entrepreneurs and established small businesses to have access in low-cost training. This innovation is available to over 1,800 locations across the countries and U.S. territories.
• Government Contracting
The SBA gives opportunities to small businesses to acquire federal procurement or subcontracting ventures, outreach programs and training. This is a mandate from the Small business Act section 15(g) that sets the office of Government Contracting with the federal departments and agencies to the reach the statutory goal of 23% on the prime contract dollars with the small businesses.
SBA is the Voice of the Small Business in any legislation. It provides services on conducting research on the American Small businesses and small business environment. Hence, SBA assesses the impact of the regulatory burden on the side of the small ventures.
You can visit your local SBA office in your state. Also, more information about the loans and grants that SBA offers can found on their official website atsba.gov. You don’t have to carry the entire burden to start a profitable business; there is available support for your endeavour.