Businesses of all sizes have been negatively impacted by the ongoing COVID-19 pandemic. Some are just getting started, while others have had to rethink their business model. President Biden’s recently enacted coronavirus stimulus bill is designed to help, providing $1.9 trillion in assistance to businesses and individuals. The bill includes aid in the form of tax credits, loans, and grants.
As illustrated by the following sampling of grants, the assistance available to you from the government will vary, depending on your specific situation.
- $100,000 for Start a SUD Startup. The National Institute on Drug Abuse (NIDA) is sponsoring the annual 2021 $100,000 for Start a SUD Startup Challenge. An SUD is a Substance Use Disorder, and NIDA will be supporting research for any new business startup with a focus in this area. There will be 10 prize winners of $10,000 each, and winners will also then be eligible to compete for the NIDA Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) grants. The submission period will end on November 16th, so eligible entrepreneurs should start drafting ideas now.
- COVID-19 Economic Injury Disaster Loan. Through the SBA, small businesses can receive up to $10,000 in Targeted EIDL Advances. These businesses must be located in low-income communities and be experiencing a loss of revenue due to the pandemic.
- National Institute of Health Grants. The National Institute of Health (NIH) is currently funding grant opportunities related to COVID-19 research. These grants are reserved for small businesses that develop and research biomedical technology. There are multiple grants available with deadlines throughout 2021 and beyond.
- Small Business Innovation Research Program (SBIR). The SBIR offers grants to small businesses so they can participate in federal research and development with the potential for commercialization. It’s a highly competitive awards-based program that helps businesses achieve scientific excellence and technological innovation. To qualify for SBIR grants, you must operate a for-profit company and satisfy other requirements.
- Small Business Technology Transfer Program (STTR). Similar to SBIR, the STTR program focuses on funding research in the R&D arena. However, what separates the STTR is the requirement that the small business has a formal collaboration with a research institution. To qualify for STTR grants, you must operate a for-profit company and satisfy other requirements.
- U.S. Department of Commerce Minority Business Development Agency (MBDA). Targeted grants and loans designed to aid minority-owned businesses are offered throughout the year. Minority-owned businesses can find information about local MBDA Business Centers at MBDA.gov.
- U.S. Department of Energy (DOE) Clean Energy Grants. The U.S. Department of Energy (DOE) announced $105 million will be put toward funding small businesses working toward climate change. Administered by DOE’s Small Business Innovation Research (SBIR) and Small Business Technology Transfer (SBTT) programs, the funding opportunity is open to small businesses that have previously received SBIR or STTR grants to provide additional support toward their research for climate change solutions. Phase 2 applications are due December 7.
- U.S. Small Business Administration State Trade Expansion Program (STEP). Intended to assist small businesses desiring to export products, this program distributes federal funds through state entities. Small businesses that meet the criteria set by each state can use the financial assistance to participate in foreign trade missions and shows, obtain entry to foreign markets, develop websites and design international marketing products or campaigns.
- U.S. Economic Development Administration (EDA). The EDA is part of the U.S. Department of Commerce offers ongoing funding opportunities for projects that support regional and national economic development. Applicants can apply for a variety of rolling-basis EDA investments that fund projects in construction, non-construction, planning, technical assistance, research and evaluation, higher education and more.
As you would expect, acceptance of free money from the government comes with a fair amount of paperwork. Applying for a grant can be time-consuming and technical. You want to make sure, therefore, that you are eligible before applying. In addition to the legal and administrative prerequisites, there are ongoing reporting and auditing requirements.
Government contract assistance
The federal government spends billions of dollars on goods and services each year. A lot of that money is spent through a competitive bidding process. Programs have been put in place to assist some small businesses with the process, allowing them a better chance to compete for those federal dollars.
- Service-Disabled Veteran-Owned Small Business Program. The federal government seeks to award at least 3% of all federal contracting dollars to such businesses annually, so this program helps with meeting that target. This federal contracting program offers assistance to small business owners who are service-disabled veterans. Eligible small businesses must be over 50% owned/controlled by one or more service-disabled veterans, have day-to-day operations and long-term goals managed by at least one service-disabled veteran, and have a service-connected disability.
- Women-Owned Small Business (WOSB) Federal Contracting Program. The federal government seeks to award at least 5% of federal contracting dollars to women-owned small businesses annually. Through this SBA program, the Office of Women’s Business Ownership provides support to women entrepreneurs by offering business training, counseling, federal contracts, and access to credit and capital. Their goal is to offer equal opportunities for all women in business.
- 8(a) Business Development Program. The purpose of this program is to assist small businesses owned by socially and economically disadvantaged entities. This is achieved by limiting competition for certain government contracts to businesses participating in the 8(a) business development program. To participate a business must be certified as an 8(a) entity.
- HUBZone Program. This program aids businesses in underutilized business zones by making them more competitive in regard to some government contracts. Businesses that join the HUBZone program can compete for set-aside contracts as well as receive preference on others, including a 10% price evaluation preference in open contract competitions.
See How To Apply For 2021 Small Business Grants, Loans And Programs Here
Natural Resource Sales Assistance Program
In addition to the billions of dollars spent purchasing goods and services, the federal government also sells large amounts of natural resources and surplus property. The SBA Natural Resource Sales Assistance Program sets aside a percentage of these goods for bidding by small businesses only. In addition, federal agencies sometimes divide surplus materials into smaller parcels, making it easier for small businesses to purchase. The five categories are:
- Timber and related forest products.
- Strategic materials.
- Royalty oil.
- Leases involving rights to minerals, coil, oil and gas.
- Surplus real and personal property.
The program also provides training for small businesses on government sales and leasing.
General small business grants
There are many nonprofit and corporate entities offering grants and other assistance to small businesses. Here are a few such programs that are open to qualifying small businesses in any industry:
- Alibaba.com Grant Program. In partnership with Hello Alice, Alibaba.com is sponsoring a $500,000 grant to help support online entrepreneurs bring their ideas to life. Chosen winners will receive $10,000 each toward their businesses. To enter, head to their website and share why you think your project or business is innovative in its industry!
- Backstage Capital. Backstage Capital is a venture capital fund that invests in startups and small businesses. This year, entrepreneurs can apply for the funding they need through Backstage Capital by outlining the financial needs of their business on the online application. Though Backstage Capital hasn’t listed a deadline for funding applications yet, entrepreneurs should apply early.
- The Barstool Fund. This grant is for small businesses affected by COVID-19 who kept on many employees during the pandemic and have a proven track record of success. Winners are chosen on a rolling basis; apply today for a chance to receive funding for your business.
- GoFundMe Small Business Relief Fund. GoFundMe’s Small Business Relief Fund will match $500 grants to qualifying small businesses that have been negatively impacted by COVID-19 and raise at least $500 through a GoFundMe campaign. The fund is backed by GoFundMe and corporations like Intuit QuickBooks, Yelp, GoDaddy, and Bill.com. Small business owners with existing campaigns can add the hashtag #SmallBusinessRelief to their campaign and fill out this form to confirm their business.
- KKR Small Business Builders. KKR launched its Small Business Builders fund in partnership with Hello Alice to provide COVID-19 recovery grants of up to $10,000 to small businesses. In addition to capital, grantees also gain access to technical expertise, mentoring, and coaching opportunities from KKR, as well as Hello Alice’s network of resources and online community.
- Nav’s Small Business Grant. This quarter’s small business grant sponsored by Nav has officially opened! To apply, make a free account on Nav’s webpage, fill out their simple application explaining what you would use the grant money for, and then follow the steps outlined on the application page to post about the contest on your business’s social media. The site also lists helpful tips to make your application stand out and applications from previous recipients. Applications must be submitted before October 28th and winners could receive up to $10,000.
New York Start UP! 2022 Business Plan Competition.
- For the 12th year in a row, the New York Public Library is sponsoring its business plan competition, which provides eligible businesses with $15,000 toward the launch and growth of their businesses. Entrepreneurs will also receive guidance and mentoring from the NYPL’s Thomas Yoseloff Business Center. Note that this grant is limited to the residents of Manhattan, The Bronx, and Staten Island.
- New York State COVID-19 Pandemic Small Business Recovery Grant Program. The state of New York recently opened applications for its Pandemic Small Business Recovery Grant Program. Grant awards range from $5,000 to $50,000 per business based on annual gross receipts from 2019 and can be used for COVID-19 related losses or expenses incurred between March 1, 2020, and April 1, 2021. The State is scheduled to begin notifying selected businesses on June 28, 2021.
- Ohio Small Business Relief Office Grants. The state of Ohio is currently offering multiple grants and relief funds to local businesses impacted by the COVID-19 pandemic. In addition to general grants for new and established small businesses, there are also opportunities for businesses in the food and beverage, entertainment and lodging industries.
- Walmart Local Community Grants. Through this small business grant, local organizations can receive funding from Walmart and Sam’s Club facilities. Grants range from $250 to $5,000. The deadline to apply is December 31, 2021.
Some small business grant programs are confined to a specific entrepreneur demographic or business profile and they often have an application process that is easier to navigate. This is a sample list, so be sure to check with nonprofits and large corporations in your geographic area or industry.
Additional resources
The programs listed above are a good start when it comes to grants and funding. You may find additional resources available by following the links below.
