Small business owners face numerous challenges when it comes to running their enterprises. One of the major challenges is obtaining funding to get their businesses off the ground or expand their existing operations. Fortunately, the Small Business Administration (SBA) offers grants that provide financial assistance to small business owners. If you’re struggling to keep your small business up and running, here are 5 small business administration grants worth considering in 2021.
1. Small Business Innovation Research (SBIR)
The SBIR grant’s primary objective is to support small businesses that are engaged in research and development. This grant is awarded to small businesses that are developing innovative solutions to pressing problems related to industries such as medicine, technology, and agriculture. The grant is available to small businesses that have fewer than 500 employees and receive additional funds from venture capital.
2. Community Navigator Pilot Program
The Community Navigator Pilot Program is a grant that assists small businesses owned by minorities, women, veterans, and disabled persons in underserved communities. The initiative provides funding to organizations that assist small businesses by providing resources such as mentoring, workshops, and consulting. Through the grant, small businesses have the chance to receive training, mentorship, and networking support from experts, which can improve their prospects of success.
3. Women’s Business Centers (WBCs)
Womens Business Centers offer a range of services to females who run small businesses, such as training opportunities, consulting services, and networking events. This grant helps women small business owners overcome the barriers that women entrepreneurs face and supports their transition from employee to owner.
4. Microloan Programs
Microloan programs provide short-term loans to assist small business owners in covering essential expenses such as inventory, labor, and rent. The maximum amount for a microloan is $50,000, and the repayment period is usually 6 years. Small business owners who are unable to qualify for traditional bank loans may find the microloan program appealing.
5. Economic Injury Disaster Loans (EIDLs)
Economic Injury Disaster Loans (EIDLs) are designed to help small business owners recover after a disaster such as a hurricane or pandemic. The funds can be used to cover working capital, fixed debts, payroll, and other expenses. EIDLs are available to businesses that have experienced a decline in revenue due to a declared disaster.
In conclusion, obtaining funding for small businesses can be a daunting task. However, with assistance from the Small Business Administration, small business owners can take advantage of these grant opportunities to grow their businesses. It is important to note that each grant program has its eligibility guidelines, so small business owners must fully understand these requirements before applying.
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